The sales industry in the United States is robust, providing employment for more than 2.3 million people, according to job statistics website Zippia. About 70.5 percent of the nation’s sales professionals are men. Overall sales employment is projected to decline between 2022 and 2032, but the industry is still expected to generate 1.8 million job openings each year.
Professionals can implement several sales techniques, such as SPIN selling and SNAP selling. In SPIN sales, the salesperson asks questions to identify the situation, problem, implication, and need-payoff (SPIN). In SNAP selling, the salesperson helps customers make impactful decisions when they are overwhelmed with options and information.
Sales professionals can use these and other techniques to achieve sales objectives such as upselling, which is encouraging customers to purchase additional products, product upgrades, a more expensive model, or a similar added expense. Upselling is sometimes viewed as a dishonest tactic to separate customers from as much cash as possible. In reality, upselling is a legitimate sales tactic that can enrich the client-customer relationship and increase sales revenue, if handled correctly.
Upselling is sometimes confused with cross-selling, another sales tactic to increase revenue per sale. While both involve promoting additional purchases, upselling focuses on upgraded or greater quantities of the product the customer initially wanted. Cross-selling matches the customer’s desired product with complementary products or services.
Many common examples of upselling exist across various industries. A passenger on a commercial flight might have the opportunity to upgrade a coach ticket to a first-class seat. Many restaurant menus promote the addition of a side or salad to their entrees for an extra price. Many book retailers offer the option of an audio version of a book after a customer buys the hard copy. Car salespersons may convince a buyer to purchase an upgraded vehicle package with expensive luxury amenities.
As these examples demonstrate, upselling is not only a legitimate and widespread sales strategy but is expected in many scenarios. However, sales professionals must be careful about attempting to upsell. Upselling should commence before the initial sale. For online sellers, a product page for a standard product should provide clear directions to upgraded versions of the product. Comparison charts frequently distinguish between the various features of higher tiers.
Checkout processes also provide opportunities for upselling and cross-selling. Volume discounts and gift-wrapping services are examples of upselling strategies offered at checkout. Of course, upselling can still occur after the initial sale is completed. Certain products lend themselves to post-purchase upselling. Software, for example, is regularly upgraded, and individuals can typically upgrade without visiting a brick-and-mortar store.
Regardless of when salespeople implement upselling strategies, they must observe best practices so customers do not feel pressured or duped into additional purchases. Upselling cannot be about greed; if a customer feels the sales professional is prioritizing their own interests over the customer’s, the initial sale is at risk. Customer needs must always come first. Sales professionals must educate customers on how upgraded products and additional services can meet their needs.
