Brought To You By Snap Finance
While many of today’s shoppers are doing more of their own product research than ever before, there is still plenty of opportunity for retailers to upsell their customers to higher-quality options. According to Sumo, the online developer, upselling increases revenue by an average of 10 to 30%. Helping your customers get the most from their budget is not only an effective way to increase their average invoice, it can also help improve their experience. When done correctly, a successful upsell strategy improves customer satisfaction, which in turn increases the likelihood of them becoming a return shopper and bringing in referral business as they share their experience with others.
Whether your customers are shopping online or in person, there are several upselling options you can use. But your goal should always be the same—help them understand why an upgraded version could be a better fit for them. Be aware that not every customer is an upsell opportunity; avoid being too pushy and always be mindful of their financial situation.
Here are some upselling ideas for your store and website:
The Rule of Three
This technique presents customers three available options upfront: the basic, the upgrade and the dream. Start by explaining the features and benefits of the dream product followed by an explanation of the upgrade and the basic models. This is a practical way to address a customer with an open budget.
The +25% Upgrade
After showing a customer the original product, introduce the upgraded version. Experts suggest that this upgrade should not be more than 25% above than the original price. Let’s say a customer wants the basic mattress for $500. Using the 25% upgrade tactic, you offer him a step-up model for $625 with its extra features.
A great way to incentivize customers is by increasing the perceived value of the new offer by adding free perks like delivery, an accessory or related product, or even removal of old furniture or mattresses.
Take Away the Risk
Offer customers a testing period, after which they can return the product if it doesn’t match their expectations. Customers will feel more comfortable with the option to return and choose a different item that better fit their needs.
Holiday sales can drive customer traffic, and once they’re in the store, you can upsell a high-end model with a special discount. “Today only–get the top-of-the-line king mattress for the price of the queen!”.
What happens when the specific mattress the customer wants is out of stock? Suggest a similar model from a different manufacturer or category with improved features and in a similar price range.
Upselling: When and How
From the layout of your store floor to an automated process in your online checkout, there’s an upselling opportunity each time you come in contact with your customers.
In your store, display basic and upgraded models next to each other so customers can compare the different versions. This creates a unique opportunity to experience the benefits of the high-end models.
When a customer contacts your customer service, let them know about available upgrades or new models. If the client is not satisfied with the current product or service, offer a replacement.
Create a thank-you email campaign for customers following their transaction and use it to invite them back. Send newsletters to keep them engaged, with personalized offers and coupons for their next purchase.
Incorporate a comparison chart in your checkout process to highlight the advantages of other models vs. the selected product. Focusing on the benefits of each item will help customers decide.
Focus on Benefits
The purpose of upselling should be to improve the customer’s life. Rather than listing all the features of a product, focus on explaining how it can help fix the problems your clients are facing. Customers are not interested in learning technical details, but rather knowing how a particular product can benefit them. For instance, instead of getting into the weeds about what goes into a particular memory foam formulation, explain how it helps reduce back pain and allergies.
Customers can learn about a product online, but you have years of expertise and access to updated product information from your vendors. Use this knowledge to offer expert suggestions that help your customers feel confident about making larger purchases. This will build their trust and loyalty while increasing your average order value.
Experts believe that with fewer social-distancing restrictions, customers will return to stores, boosting in-store revenue in 2021. This could be a great opportunity for retailers of big-ticket items like mattresses, which customers like to try before they buy. But as e-commerce keeps growing, having an omnichannel presence coupled with effective upselling techniques, will help brick-and-mortar businesses increase their bottom line and create a long-term benefit: enhanced customer loyalty.
Innovating the fintech industry, Snap Finance helps mattress retailers reach their full sales potential by offering credit-challenged customers flexible financing solutions. Are you interested in learning how Snap can help you boost your online an in-store transactions? Contact Snap at 866-871-0311 or visit snapfinance.com