Identifying opportunities to upsell.
Offering a premium version of what was bought or an add-on is known as an upsell. The original solution sold, not always address all the customer needs. That opens an opportunity for the vendor to address the situation by offering an additional feature at an additional cost.
Why should a company Upsell?
The short answer is revenue increase. Once the customer has agreed to pay for the initial purchase, all the considerations about the seller and the product/service have already been assessed and validated. Any objection at this point will be limited to the additional value added by what is being brought to the table. When well implemented, the upsell is a win-win situation, as the customer needs something that the vendor has the intention to sell.
How to Upsell?
Active listening plays an important role in this case. If a solution for an extra cost is to be offered, the issue that will be solved has to be clearly identified. The logic behind offering an upgrade is understanding the value to the customer of a feature that is available upon additional payment.
A good customer success strategy to approach it is whenever assessing a new customer concern or problem, list among the alternatives some that have an additional cost and its advantages over the other solutions.
Do Not mistake Upsell for Bait and Switch.
Do not mistake it by bait and switch, which is a kind of fraud that the customer gets lured to the point of sale with an excellent offer, only to find out that what was advertised is not available (in fact it never was), and instead is offered something more expensive.
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