Smart marketing makes the customer feel smart

Learn the power of Upsell

Learn the power of Upsell

By on Apr 21, 2018

How do you generate more profit? Learn the secret of the upsell offer!

Many business owners are afraid of upselling. They don’t want to come across as too pushy or as if they are making a sales pitch.

When upselling is done right, it doesn’t feel like a sales pitch – it feels like you are in tune with your customer’s needs. You can easily increase what customers spend each visit, and it generates many other benefits, as well:

  • It builds deeper relationships with your customers
  • It’s easier than selling to new customers
  • Increases customer lifetime value
  • It creates repeat customers

All upsell offers have one primary goal: to increase the average transaction value of your customers, while making them happy.

Bob Ruffolo says on

“While mediocre businesses are focused on a single offer, smart (and insanely profitable) businesses are creating multiple offers to maximize their profit per customer.

For example, let’s say you have a $100 offer that you’ve sold to 100 customers. That’s a total revenue of $10,000.

You might not realize it, but roughly 30% of those 100 customers likely would have bought a $300 offer immediately following the purchase of the first offer. That’s an additional $9,000 of revenue, nearly double the amount of revenue generated from each customer!”

That’s the power of the upsell.

Most businesses don’t have Lead Magnets or Tripwires and they don’t have upsell offers. The only thing they do is sell their core product and make a living on its profit. This is why they struggle.

For example, McDonald’s makes $0.18 profit on a hamburger. The hamburger is their Core Offer, but it’s the fry and soda upsell that makes their additional $1.14 profit. This gives some additional insight to “Do you want fries with that?”

You don’t necessarily have to change the core product. The upsell can be a longer guarantee, or a package of other products and services. But you can sell products in bulk for better price value. If your business relies on shipping products, shipping multiple products together is typically cheaper than sending them individually. Amazon has taken advantage of this concept with their “add-on product” offers. Customers feel like they are getting a better value, and Amazon earns an incremental profit that they otherwise might not have.

Another good approach to upsell offers includes memberships or subscription services. These are good to consider because they generate monthly income from the same customer, while creating a value for their customers through convenience and consistency.

Upsell strategies:

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Upselling is a valuable skill to help you achieve your primary goals: make your customers happy and successful, while generating more profit.

Depending on where your buyer is in the customer journey, create an upsell strategy and timing, then offer different upsell options.

What could you offer as an upsell? What could you bundle with your core product?

Leave your comments below.

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Related articles:

The secret what makes your offer compelling

Marketing test: How well your marketing is working

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