What Is Upselling?


Upselling is a sales technique aimed at persuading customers to purchase a more expensive, upgraded or premium version of the chosen item or other add-ons for the purpose of making a larger sale. eCommerce businesses often combine upselling and cross-selling techniques in an attempt to increase order value and maximize profit.
Although sales techniques tend to invoke negative feelings in us, when done right, they can actually improve our shopping experience. Online retailers rely heavily on upselling and cross-selling techniques for several reasons:
Upselling helps retailers build deeper relationships with customers. Upselling is not a dirty tactic if you put it into perspective. If it focuses on helping your customers ‘win’ by suggesting premiums, upgrades or add-ons that will eventually deliver more value and make them feel like they got the better deal, it will turn out to be a customer happiness tactic that also generates additional revenues.
It’s easier to upsell to existing customers than to acquire new ones. Lead generation is an expensive practice. It is much easier and cheaper to optimize the sale to a customer who already trusts you and has bought something from you in the past or is about to make a purchase now than to sell to a new prospect who has never heard of your brand. As we mentioned before you have a 60-70% chance of selling to an existing customer and only a 5-20% chance of selling to a stranger. It’s an easy win for a lot of eCommerce businesses on a mission to accelerate their growth and improve the bottom line.
Upselling leads to increased Customer Lifetime Value (CLV). Customer Lifetime Value is the net profit contribution a customer makes to your company over time. You can split your customers into three main categories: not profitable, profitable and very profitable. Higher CLV means each customer generates more revenue for your business without you having to invest anything extra, which also means your company has more money to spend on acquiring new customers. Upselling is one of the most effective ways to turn shoppers into very profitable customers and keep them coming back.
Customers come back for more. Upselling is unique in the way it adds value to customers that makes them want to come back for more. By creating an easy way to make life straightforward for customers you are ensuring that they will return in the future if they need more of what you are selling. Be sure to offer great customer service along with your upselling efforts to guarantee happy customers no matter what happens.



SMS and Upselling?



Because you already have an established relationship, upselling should be easier than seeking  new customers or speaking to fresh leads. Especially if your product works well. Still, if you’re just starting to use texting to upsell, there’s some testing and learning you’ll have to do to learn the rules. Use these messages as a jumping off point:
 
When  a new customer is acquired, have a member of your account management or customer service team reach out with a friendly welcome. This lets your customer know they’re cared about, and gives them an avenue through which to ask questions. When a customer can quickly troubleshoot any initial issues they experience with their service, they’re more likely to stick around.
Give your customers time to get familiar with your product before you start trying to sell them more. A one, two, or three-month check-in is a good chance to see how they’re doing. If they’re getting a lot out of your service already, consider telling them why it would be beneficial to upgrade. If the time isn’t right to upsell, use this as an opportunity to increase retention. Offer to help and show them how to take full advantage of your service.
Many companies, especially those in the SaaS space, have different pricing plans. Each one with certain limits. Often times, there’s a free version for trial users that has limited functionality. When someone reaches one of these limits, tell them why and how to upgrade.






We’re living in a text message world, and this gives entrepreneurs a unique and added opportunity to reach people faster and more efficiently. Texts, in comparison to phone calls or emails, are more engaging, getting crazy high open rates and responses.
Not just new customers– but those who have purchased from you once or twice in the past and your old faithful– would LOVE to receive an exclusive offer from you. This is an easy way to engage or re-engage your customers, and it takes just a quick mass text from you. With iChitChat you will only boost your sales! 
 
It’s also a good idea to give your audience a heads up about these special offers (or any other promotions or sales you’ve got coming up). This will increase the likelihood that they’ll come around to take advantage of it.
 
And while we’re talking about reminder texts… Don’t forget to send them a text one or two days before the promotion ends. After all, your customers are human. They may have been interested but become sidetracked.
Text out a simple survey after your customers have interacted with your business. This info will not only help you make sure you’re on the right track but it can also give you valuable information about where your marketing or customer service strategy is lacking.
 
Be sure to ask simple questions so that your audience will be willing to engage. The longer the survey, the less likely that they will stick around to answer all of your questions.
Text messages are a quick and easy way to remind your prior customers that you’re still in business and that you’ve got some new products or services that you want them to see.