What is an upsell?
Well, it’s retail shopping season, which means that it’s ‘upsell season.’ I saw living proof of that just a few minutes ago. I stopped into one of my favorite bookstores. As is my habit, I picked up a new motorcycle magazine, and proceeded to the counter. And there…I played the new version of Twenty Questions.
“Do you have our discount card, sir?” she said. “No,” I replied. “Well, would you like to sign up?” “No,” I again replied (First of all, I refuse to pay to get discounts – secondly, I don’t have room for the cards of all the places that I shop). “Would you like to donate to something-or-other?” “No,” I again replied. “Would you like to also purchase…” By this time I was getting annoyed, and I said, “No, what I would really like to do is to exchange cash for a magazine. Do you still do that here?” A bit shaken, she completed the transaction – but she committed the biggest mistake in retail upselling. Let’s talk about that, and some other mistakes – then let’s talk about how to master the upsell in any part of selling.
The biggest mistake in retail upselling is this: Only one upsell per customer per visit. I don’t mind being asked if I’d like to purchase an additional item. Usually I don’t, but I recognize that the company is trying to maximize my purchase volume, and I’m good with that. But when customers have made their selections and are at the checkout, they’re typically ready to pay and go – and if your retail sales process is an impediment to the customer doing just that, you have a problem. So, if you’re in retail, one upsell per customer, please.
The next mistake the lady made is this: The completely unrelated upsell. The third (and final) upsell she tried was a children’s book. I don’t have children, either mine or in my immediate family – so the best kids’ book in the world is lost on me. Of course, she didn’t know this – but that’s the point. However, there’s something that she DID know. I like motorcycles, hence my purchase of Rider magazine. Had she said, “Hey, we also have the new issue of Iron Horse here (they had it at a checkout display) – want to grab that, too?”, it would have been a completely reasonable upsell.
But no, the upsells were designed for every customer, and were one size fits all upsells. These are also a mistake, unless you know for sure that everyone in the door has a common need. For instance, one of my clients manufactures superchargers for automotive applications. When customers call in for parts, it’s completely reasonable that, on every parts call, they ask if the customer needs some supercharger oil – because they usually do. In most cases, however, the one size fits all upsell is not valid.
So, how do you succeed in upselling? First, you understand that there are really only three types of upsell that can be successful – the tag-along product, the more expensive product, or the referral upsell. And you also should understand that the successful salesperson needs to be careful about using them – the ‘one per customer’ can apply well in any sales environment. I’m goinng to discuss these in terms of product, but they can work well in terms of services, as well.
The Tag-Along Product: A ‘tag along product’ is a product that is most likely purchased with another product, or that makes a nice ‘fit.’ “Do you want fries with that?” is the most classic tag-along upsell. Doing a good tag-along upsell requires a little pre-planning. Think about what products (again, or services) you upsell that are a nice fit with other services – particularly if they’re ones that the customer hasn’t thought of or might not normally think of. The best tag-alongs are the ones that complete the buying experience for the customer.
The More Expensive Product: Everyone understands this one. If you’re buying a single cheeseburger, do you want to upgrade that to a double? Want to upgrade that hotel room to a suite? Etc. This is probably the easiest of the upsells to master, since all you have to do is to understand the additional features and benefits of the more expensive product, and guide the customer in that direction. Be careful, though – this can work in reverse. I’m typing this on a new Hewlett/Packard ProBook that I just purchased a month ago for $800. The computer store salesman tried to move me up to the $1000 version – however, a close examination of specs, features, and benefits showed that my $800 selection was actually more computer than the $1000 version!
The Referral Request: Referrals are upsells, too. Typically my preference for referral upselling happens AFTER the customer has achieved satisfaction with their purchase, not at the time of purchase (as part of a business review) – but there are some instances where it’s completely appropriate to ask for referrals at the point of purchase – “Do you know of anyone else who might benefit from this,” etc.
Again, however, the key is to be smart and think on your feet. Nearly all of your customers will allow you one upsell per transaction. Some will allow you two. If you go for three, you’re going to annoy more than you sell. Pre-plan, think ahead, and make sure that your first upsell is your best upsell. That means that if you only get one, it was your best shot.
