What Is Upselling & How To Upsell Any Product or Service

Summary

In this educational video, Patrick Dang explains the concept of upselling, which involves encouraging customers to purchase more of the same product or an upgraded version. He uses the example of Software-as-a-Service (SAAS) to illustrate how offering discounts for longer contracts can upsell. Patrick also discusses tiered pricing models and how understanding the buyer's journey can create natural upsell opportunities. He advises sales reps to identify customers who might benefit from higher tiers and engage them in conversations about upgrading their features, ultimately leading to increased sales.

Takeaways

• 📈 Upselling is the strategy of encouraging a customer to purchase more of the same product or an upgraded version at a higher price.
• 🎯 The goal of upselling is to increase sales by offering additional or enhanced versions of a product or service to existing customers.
• 🔗 Upselling works best when the customer already trusts and has experience with the product or service, making it easier to suggest a higher-tier offering.
• 💼 A common upsell scenario is offering a longer-term contract with a more generous discount to a customer considering a shorter-term deal.
• 📊 Tiered pricing models, such as bronze, silver, and gold tiers, are effective for upselling by progressively unlocking additional features at higher price points.
• 💡 Successful upselling involves understanding the buyer's journey and identifying the right moments to introduce upgraded offerings that align with their evolving needs.
• 📝 It's crucial to map out the product roadmap and tiering to guide customers naturally from one tier to the next as their needs grow.
• 👥 When executing an upsell, target high-level decision-makers within a customer's organization who have the authority to make purchasing decisions.
• 📧 Craft personalized outreach to decision-makers that acknowledges their success with the current product, identifies their pain points, and proposes a solution through an upgrade.
• 🗓 Follow up with a call to discuss the customer's goals and blockers, positioning the upsell as a logical next step to help them achieve more with the software or service.

Q & A

What is the definition of upselling used in the video?

Upselling is defined as encouraging a customer to purchase more of the same or an upgraded version of a product and service, at a higher price.

How does upselling differ from selling a completely different product?

Upselling involves selling more of the same product or an upgraded version to an existing customer, rather than introducing a completely different product.

What is an example of upselling in the context of Software-As-A-Service (SAAS)?

An example of upselling in SAAS is offering a customer a more generous discount for signing up for a longer contract period, like three years instead of one year.

How does the concept of pricing tiers relate to upselling?

Pricing tiers are used in upselling by offering different levels of the same product with additional features at higher price points, encouraging customers to upgrade to higher tiers.

What is the role of understanding the buyer's journey in upselling?

Understanding the buyer's journey helps identify the right moments to upsell by recognizing when customers might need more features or an upgraded version of the product.

Why is it important to target high-level decision makers when upselling?

Targeting high-level decision makers is important because they have the authority to make purchasing decisions and can approve upgrades or additional purchases.

What is the strategy for identifying upsell opportunities within a customer base?

The strategy involves using CRM data to find customers who are hitting roadblocks or showing signs of needing more features, indicating they might be ready for an upsell.

How can a sales rep initiate a conversation for upselling?

A sales rep can initiate an upsell conversation by reaching out to the decision maker, acknowledging their success with the product, and offering to help them unlock further potential.

What are some features that might be offered in an enterprise version of a product to upsell?

Features such as data enrichment, job changes, call transcriptions, and international dialing might be offered in an enterprise version to upsell customers.

Why is it crucial to map out a product roadmap in terms of tiering for upselling?

Mapping out a product roadmap in terms of tiering helps align the upsell process with the customer's needs and the product's capabilities, making the upsell a natural next step.

How does the video suggest following up with customers who show interest in upselling?

The video suggests scheduling a call to discuss their goals and blockers, and then presenting how the upgraded product can help them achieve their objectives.