The Importance of Upselling Your Business
June 19th, 2013 by Diane Conklin under Business Strategy, Marketing. No Comments.
The concept of upselling is certainly not a new idea. The goal of upselling is to increase your profit. 
A great example of this is carried out by the cruise lines, specifically Carnival Cruise Lines. During a recent booking experience, a repeat customer mentioned how much they loved having a room with a balcony. Unfortunately, at the time of the booking, the customer couldn’t see themselves making the large investment to have a balcony room, and instead opted for a room with just a window. Three weeks before the cruise, Carnival called the client with an upsell offer. Knowing the customer preferred a room with a balcony, Carnival offered a room with a balcony for a small upgrade price that was nowhere near the original asking price for the balcony room.
Having been a customer of Carnival Cruise Lines before, and after the VIP treatment the client received in this example, they will continue to be a customer of the cruise Line. And who knows, having told the story to you might inspire you to go on a cruise with them as well.
However, the point here is not to discuss word of mouth marketing, but to show you how important upselling can be to your business. The customer may have been content to keep a standard window room if they focused on how much it was saving them. When Carnival offered the room at a discounted rate, it didn’t cost them much, but it added to the company’s profit.
You can do the same thing in your business by knowing what your customers want and choosing the right time to offer to them.
Suppose you provide a product to your customer, and went back to them a week, or 10 days later, or after they’ve had enough time to consume some of your product, and you had an upsell offer for them. They’ve gotten a chance to get to know you, determine if they like you, and trust you, and like your product. Now you’re offering a product or service – something they want – for a reduced price, and for a limited time.
Even if only twenty percent of your customers took you up on the offer, and even if it was only $30.00 or $40.00 more, you’re profiting more than you would if you hadn’t made the upsell offer. If you only got 10 of those in a week, or even in a month, you’re going to start to see the long term value of your relationships develop, and a long term increase in the profits your business generates.
So if you’re thinking about the upsell concept and how you can incorporate it into your own business, you must first determine what people want and when they’re most likely to buy from you again. Then use that knowledge to build your profitable relationship, by making your customers feel like VIP’s.
