What is upselling?
Upselling is a sales technique where businesses offer customers a personalised product recommendation that provides additional benefits, but at a higher price than the item they initially intended to purchase. By definition, an upsell encourages customers to opt for a more valuable product or service.The primary aim of upselling is often to increase average order value (AOV), revenue, and customer lifetime value (LTV) for e-commerce businesses. However, upselling can also help enhance customer satisfaction, build stronger engagement, and boost brand loyalty by matching customers with products better suited to their needs. Upselling tends to work best when targeting existing customers who already trust your business. Because of their relationship-driven nature and recurring customer interactions, subscription businesses are particularly well-positioned for effective upselling opportunities.
The difference between upselling and cross-selling
Both upselling and cross-selling are valuable techniques for raising AOV and customer LTV in e-commerce. They also help simplify the shopping experience when tailored carefully to customers’ interests.
- Upselling focuses on persuading customers to buy a higher-end product or service, essentially an upgrade that offers extra value for more money.
- Cross-selling, on the other hand, encourages customers to add related or complementary products to their basket, acting as useful add-ons rather than upgrades.
Upsell strategies for e-commerce businesses
E-commerce businesses can present upsell opportunities in several places: product pages, bespoke basket pages, pop-ups, follow-up emails, and even through customer account portals. Personalising these recommendations, using tools like product quizzes, customer data, and analytics, significantly improves the success rate of upselling. Updating your website to support upsell placements across product pages, checkout flows, and other strategic touchpoints helps ensure customers see relevant suggestions at the right moments.
It’s crucial to be transparent about the benefits of upgrading, and to provide helpful educational content for customers unfamiliar with higher-end options. By combining effective upselling and cross-selling, businesses can grow AOV and LTV while delivering a more personalised shopping experience that strengthens customer relationships.
