Glossary
Definition: Upselling means selling the customer a higher-quality or more comprehensiveversion of the product they originally wanted (cross-selling, upselling, additional sales, complete sales, supplementary sales). In contrast to cross-selling (additional product), upselling involves the same product in a better/more expensive version. Example: Selling the premium model B instead of the mid-range model A, or a larger package (e.g., cell phone with 128GB instead of 64GB memory, the deluxe insurance package instead of the basic one). Goal: To achieve more revenue per sale by offering the customer added value for which they are willing to pay more.
Success factors in upselling:
Relevant added value: The key: The more expensive offer must bring the customer visible added value. If it is only more expensive for the sake of the price, the customer will recognize this and reject it. Find out what is important to the customer and offer the upsell accordingly. For example, the customer actually wants the basic package but values service – so upsell: “The premium package includes our 24/7 VIP support, so you would always have immediate help if something came up.” If service is important to the customer, this sounds very attractive.
Timing: First confirm the customer's desire to buy, then upsell. So first make sure that they say yes in principle (“I want this product”). Then: “Did you know that there is also a version of this that allows you to additionally ...?” If you bring up the upsell too early, the customer might think you are just trying to talk them into something more expensive and doubt their initial choice.
Small steps: The upsell should not be astronomically more expensive than the original. Otherwise, you have two different target groups. A customer who plans to spend $500 will rarely jump to $5,000. But they might go for $700 if it's worth it. So offer moderate increases that are psychologically feasible.
Appeal to emotion: Upsells work well through emotion or status. Example: “The leather interior costs more, but let's be honest – a car in this class with fabric upholstery would be a shame, wouldn't it? It just feels much more luxurious.” This addresses pride and enjoyment. In B2B, you could, for example, emotionally reinforce the security aspect: “With the extended service, you'll never have to drive to the factory gate at night when the alarm goes off – our security service will take care of that. That also gives you personal peace of mind.” – This is an upsell of the security service based on the feeling of relief.
Examples:
Electronics: The customer wants a TV, you show them the next larger model with a better picture and a longer warranty (“for only $200 more, you get 5 years of peace of mind and a real cinema experience”).
Gastronomy: “Would you like the large menu with larger fries and a 0.5L drink?” – classic upsell, minimally more expensive for more quantity.
SaaS software: Basic version vs. Pro version (“Pro also includes user statistics and team features – worthwhile if your company is growing”).
Advantages of upselling:
For the customer: They get a product that meets their needs even better. They invest more, but potentially enjoy longer, higher quality, or more comprehensive benefits. (It's important that this is actually the case!) Many customers regret buying too little (“I wish I had just...”) rather than digging a little deeper into their pockets for added value.
For the salesperson: More revenue per customer, higher commission, better ROI per acquisition. In addition, customers are often more satisfied, because someone who buys premium tends to be more satisfied (because they receive premium performance).
For the company: Upselling increases customer lifetime value. And it's easier to sell more to an existing buyer than to acquire a new customer.
Caution: Don't overdo it. The customer has a budget and values. Overly aggressive upselling (“You should really spend twice as much, otherwise it's no good”) can also jeopardize the original sale – the customer feels misadvised (“Did they just try to sell me junk?”). Therefore: Be sensitive. Offer upsells, but if the customer clearly wants to stick with the basic product, respect that and don't disparage it. It's better to close the basic sale cleanly and, if necessary, aim for additional sales later.
Tip: Use anchoring effects in your offer: Always present the customer with several options – e.g., “good, better, best” (basic, comfort, premium). Many choose the middle option (comfort) as a compromise. But if you show premium as the highest, you often automatically sell more comfort than basic (because basic seems like “the least”). And some actually opt for premium. This upsell approach via offer package design often leads to higher average sales without actively “haggling.”
Upselling is the art of delivering more value to the customer while also maximizing your own sales success.Those who empathically recognize where “more” is “better” for the customer and communicate this convincingly are not pushy, but rather good advisors - and thus one step ahead in every conversation, both in terms of customer value and company revenue.