Upselling 101: Tips, Examples, and Techniques

If you’re looking for a way to boost your bottom line and improve your average order value, upselling can be a worthy sales approach. 

In our comprehensive guide, we’ll tell you everything you need to know about upselling, including what it is, how it differs from cross-selling, which industries can benefit from this strategy, various tips and tricks, and, of course, how you and your sales team can implement this approach. 

What Is Upselling?

Upselling is a sales strategy that encourages buyers to purchase a more expensive, higher-end solution than the one they were considering. It’s a common technique meant to increase revenue.

When a customer comes in for a certain product or service, the seller could use upselling techniques to convince them to buy a better or more expensive version. For example, if a client came into Verizon to buy a new phone, an employee could try upselling to get that person to buy an iPhone 16 instead of an iPhone 14. 

Upselling vs. cross-selling

Upselling is often confused with cross-selling and many people mistakenly use the two words as synonyms. However, the difference between upselling vs. cross-selling can be simplified to the number of purchases. While upselling emphasizes increasing the value of just one product or service, cross-selling hones in on increasing the number of products or services purchased. 

Here’s an example to illuminate that difference. Let’s consider someone who sells computers. With upselling, the seller might convince a customer who wants a new computer to purchase a nicer model with more features, apps, and storage. However, if they were cross-selling, they could employ techniques to encourage a customer to make additional purchases, like a bundle that includes the computer, a printer, software, and a monitor, for example. 

Why is upselling important? 

Upselling can be an important part of a sales strategy, especially because gaining new clients can be more costly than selling to customers you already have. Because the efforts teams put in to gain new customers can be much more expensive, upselling can be a more effective way to boost sales. 

Upselling in Various Industries

When folks think of upselling, they might think of obvious examples, especially when it comes to industries like software as a service (SaaS) that use subscriptions, upgrades, and other methods to boost the customer lifetime value (CLV). Here’s how upselling works in various industries, from general sales and retail to service-based industries like restaurants.

Upselling in sales

In the world of sales and marketing, upselling is a good strategy used by sales reps to boost revenue. No matter what product or service a rep is selling, they can usually upsell by telling customers about the increased value of another product. 

For example, folks selling a product like toothpaste may try upselling by encouraging customers to spend a little bit more money for a specialized (and more expensive) type of toothpaste, like a whitening product. So long as there’s a better, more expensive product, a seller can try to upsell.    

Retail upselling

Folks who work in retail use various strategies to encourage customers to buy products that are pricier and have more value. In retail settings, employees can upsell using a variety of methods, like product displays, gifts, rewards, and pre-purchase upsells at the point of sale, for example. 

Retailers will also use their online space to upsell by offering higher-value products at different points in the customer’s journey, from the product page to their virtual cart. 

Upselling in restaurants

Service-based industries like the food service industry often use upselling to increase profit. The most common way to upsell in restaurants is by offering more expensive options. For example, eateries often offer daily specials which may be higher priced than the usual menu items. 

Waitstaff can then upsell by recommending more expensive items based on the customer’s preference. So, for example, if a customer comes in wanting a burger, a waiter could upsell by offering a special, like a double-patty burger with the house sauce. 

A similar strategy in restaurants is to suggest a specialty drink. If a client expresses that they’d like a martini, a waitress could then suggest their special martini, like a crème brûlée martini. 

Other upselling examples 

Plenty of other industries use upselling, too. Perhaps some that you wouldn’t even consider. Take dentistry, for example. Sometimes, dentists can upsell by offering services that go beyond what the patient is looking for. For example, someone who wants traditional braces might be upsold on Invisalign treatment, which aims to achieve the same result as braces without all the brackets and wires. 

In a similar vein, folks who work in optometry might encourage someone who needs glasses to purchase more expensive frames or lenses.

The financial industry also has plenty of opportunities for upselling. For example, banks might offer premium credit cards or accounts that go beyond what the customer is looking for. 

How to Upsell in 4 Steps

Although upselling in general is a simple concept, as mentioned above, it can be tricky to implement. One of the main reasons is that it can vary across industries. How a salesperson would go about upselling in a retail setting might differ from how they’d upsell in a restaurant for example. But having a general strategy that you can tweak as you see fit is a good start. Here’s how you can learn to upsell in just four simple steps. 

1.  Identify opportunities for upselling.

The first step to upselling is identifying opportunities where you can upsell. People who aren’t interested in your products or services at all aren’t great options for upselling. Instead, look for clients who are interested and engaged with your product. In the best cases, upselling feels like a natural means of solving a customer’s problems or frustrations. 

2. Build relationships and rapport for upselling.

Next, before you even attempt to upsell, make sure you’ve established a relationship and rapport with the customer. Customer satisfaction is a critical aspect of upselling. It’s much harder to encourage someone to buy a pricier alternative to an option they were considering if there’s not an existing relationship or rapport to build on.

Once you have that relationship and rapport, sellers can start to position the upsell as the solution that will address the client’s specific issue. The way you communicate about your product or service should showcase its value. However, don’t oversell — this is a huge pitfall some reps face when new to upselling.  

3. Prepare to handle objections to upselling. 

After you’ve successfully communicated the value of the product, prepare to handle any objections the client might have to the upsell. For example, some of the most common objections reps face during upselling include factors like:

• It’s too expensive or it’s way outside of the budget
• The solution is too complex or complicated 
• There are cheaper options via competitors

Customers also frequently cite a lack of trust as an objection to offers, which is why it can be especially helpful to upsell to existing clients who are already familiar with the company. 

4. Close 

The last step of any upsell is closing. Many reps prefer to use an assumptive close here. For example, a salesperson might employ an engaging, direct phrase that signals closing and assumes the sale is complete. 

Someone doing an assumptive close might say something like, “Would you prefer delivery on Monday or Tuesday?” as opposed to something like, “Alright! Are you ready to make a purchase?”

How to Practice Upselling with Yoodli 

For folks completely new to upselling, it can be a bit difficult. Although the concept is straightforward, the actual techniques and skills needed to successfully upsell are learned. For large organizations who want to train their teams to upsell, it can be even more complex. Luckily, a tool like Yoodli can remove that complexity and facilitate at-scale training and implementation. 

Yoodli is an online sales coach that uses AI to provide a realistic but simulated environment for reps to practice upselling to customers. Well-known brands like Dale Carnegie, Korn Ferry, and Google have already tapped into Yoodli to increase seller attainment and decrease ramp across the board.

For upselling to work, reps need to be able to effectively communicate and establish a rapport with clients. For reps who are unfamiliar or less experienced, getting the hang of upselling techniques via simulated sales roleplays is a much safer option than practicing in actual conversations with clients. 

With Yoodli, reps can perfect their ability to engage in small talk and encourage buyers to spend a little bit more money for a more valuable product. This way, they can practice as much as they want without risking losing an actual customer. Plus, as a sales coach, Yoodli gives reps actionable feedback based on their upselling methods. Reps can practice in specific scenarios, from cold calling to inbound and outbound customer discovery. 

Google Cloud has already taken advantage of Yoodli’s services, and the results were so successful that it extended its partnership. More than 15,000 sales reps at Google were able to use Yoodli for at-scale training and implementation. The case study results were so positive that Google now uses Yoodli for other enablement programs, too. 

Find out how you and your team can use Yoodli to perfect upselling skills at https://yoodli.ai/. 

Upselling Tips and Techniques

There’s a plethora of upselling tips, tricks, and techniques that salespeople use on the daily to assist with successful upselling. We’ll break down a few of these tips and tricks to ensure you have the best chance of closing when you upsell.

Use customization, personalization, and tailored approaches

One of the best things you can do when you upsell is to use customization, personalization, and other approaches tailored directly to the consumer. Usually, this is a bit easier because most reps upsell to existing customers, so, chances are, you’ll know how to personalize your approach. 

Customization revolves around the sales rep fully understanding the needs and pain points of the client. That way, they can give an engaging sales pitch that directly addresses their concerns or requirements. Take advantage of things like customer data and personalized messaging. Even simple acts like using the client’s name can help tailor your approach to their needs. 

For example, taking a value selling approach that puts the customer at the forefront can be a helpful way to go about upselling.

Offer value-added solutions

Perhaps not surprisingly, offering up value-added solutions to your customer is another worthy upselling technique. Start by illuminating the special features and benefits, and how they’ll specifically address the needs of the client. From there, you can highlight the return on investment (ROI) to further show the time- or money-saving advantages of your upsell. 

Sometimes, giving a demonstration or offering a free trial or test run of the product can help clients see the true value of the solution you’re selling. This helps folks feel more comfortable as they can see or experience it before the actual purchase. 

Choose the right time to upsell

There’s definitely a right and a wrong time to upsell. Choosing the right moment to proceed with upselling is essential for sales success. For example, going ahead with the upsell might be a good idea at the end of the sales process, but it’s not a good idea if they’ve already made a purchase or declined multiple times. 

In a similar vein, remember not to be too aggressive. There’s such a thing as being too pushy. If a customer says no, especially if they’ve said it more than once, it’s best to respect their decision and not try to strongarm them into caving. 

If you think you might have trouble, sometimes creating a sense of urgency by offering discounts or limited-time offers can spark a client to action. 

Track your upselling success

One of the most underrated upselling techniques actually happens after the upsell. Many sales teams move on after they’ve successfully completed an upsell, but it shouldn’t stop there. Instead, teams should consistently track any upselling achievements to constantly refine and rework the approach. 

Be sure to measure key performance indicators (KPIs) like customer satisfaction and upsell conversion rate. That way, teams can evaluate those metrics to pinpoint trends and see which of their upsell strategies were most successful. Based on your assessment, you can further tailor your approach. 

The Bottom Line

Knowing how to upsell is a great skill to have, especially if you want to boost customer loyalty and satisfaction and increase overall revenue. Plus, it’s a versatile approach that many sellers can use in various industries, from selling popcorn at a movie theater to SaaS solutions. 

To best hone your skills, take advantage of a sales enablement tool like Yoodli to practice upselling techniques.

Sources

• Salesforce: “What is Upselling?” “What Is Cross-Selling?”
• LinkedIn: “What are the best ways to cross-sell and upsell in different industries?”
• Forbes: “What Is Upselling? The Ultimate Guide.”
• SOCO Sales Training: “The Assumptive Close: A Powerful Tool for Increasing Sales.”