Longtime customers are the lifeblood of a business. According to Marketing Metrics, you are 14 times more likely to sell to an existing customer than you are to attract a new one. What’s more, acquiring a new customer can cost five times more than simply investing in retaining one you already have.
Upselling to existing customers is essential to growth. But to upsell in a way that benefits both you and your buyers, you need to understand their unique business needs and work with them as a partner.
What is upselling?
Upselling definition: A strategy that involves encouraging a customer to buy a higher-end, more expensive version of the product they’re already using.
Upselling is a sales technique for getting customers to upgrade their purchase in a way that will increase the value of that purchase for your company. Essentially, you are convincing them to buy a similar product at a higher price tag, either because it is better quality or it includes some additional features, licenses, or related products.
But upselling isn’t only about increasing sales and revenue—it’s about helping your customers reach their goals. “Upselling shouldn’t feel like an upsell,” explains Alex Van Divner, a Zendesk account executive who works with customers around the world. “It should feel like you’re legitimately helping them, and they trust you because they’ve built that [relationship] with you.”
Van Divner has learned a thing or two about why some upsells are successful and others flop. He’s found that you should always use discretion when upselling—ask yourself if it’s the right time to make this offer, given the customer’s background with your company and the challenges they’re currently facing.