JD Duarte


Jose Duarte explains best practices for upselling on an eCommerce platform

Upselling is a sales technique that encourages the consumer to increase their average purchase via impulse. Where the key to carrying out this marketing strategy lies in the fact that in the end, it is decisive to offer a product or service that improves the initial offer complementing it. Jose Duarte, an entrepreneur and eCommerce expert from Costa Rica, explains how to upsell on an eCommerce platform.

In all cases, something that characterizes upselling is a valid system so that in the end, you can increase the income in the marketing of your products, services or articles. But from a series of approaches in marketing significantly different from other formats. Not better, not worse, but simply different and this is one of its most relevant characteristics when analyzing this term.

Upselling is a technique that, after all, helps to retain your customers as few exist at the moment. To the point that in some of the cases it even generates a complement to the purchase, as one of the sources of differentiation with respect to other models of similar characteristics. From where you can increase your sales, and that is, after all, one of the objectives you pursue at the moment.

There are many applications that upselling can offer you at the moment. But of course, one of the most relevant is the one that has to do with its nature. Says Duarte, “Upselling is a powerful instrument to improve the valuation of customers from this precise moment. Moreover, it is responsible for starting the machinery of creativity and that is certainly no small thing in the current moments of digital marketing.”

On the other hand, it is a very valid system to enhance your line of business in a simple, direct and to some extent balanced way from all points of view as well as the fact that it is a strategy that in the end can make you earn more money or at least make your line of business profitable from now on.

You have to do it at the right time. This is usually in the sales process and within this when the customer has already placed an order or is already taking out the credit card to buy.

You don’t have to be aggressive. This part in the sale, is one more addition. The customer has already bought what he needs; we have already locked in the sale.

Although cross-selling and upselling can be used interchangeably, different situations with different customers might require a different approach. The term “upsell” can be used in almost all cases where a product is recommended (or pushed), in addition to the one that has been purchased. You will be able to differentiate between cross-selling and upselling.

Higher-value products encourage customers to buy more expensive main products. A camera might come with a battery, so the purchase or rental of a printer could be viewed as an incentive to buy ink.

Cross-selling is the suggestion of any other product that is purchased along with the main product: a scanner suggestion when buying a printer or a conditioner suggestion when shampoo is selected, where it is vital that you show a good range of similar products but do not overwhelm your customer with too many options.

It’s probably not surprising that upselling works 20 times better than cross-selling. “Once shoppers have a product in mind,” explains Duarte, “they don’t want to be distracted by anything else. A product or service that makes your first choice better; however, that’s something you can normally get on board with.”

If you’ve ever waited on the phone for a customer service representative to help you solve a simple problem, just to be offered a million “opportunities” before asking for information, you can understand the frustrations your customers may feel. Therefore, suggestions of a cross-sell or upsell that is completely off in left field will not only frustrate them, but could jeopardize their relationship with your company.

Sales lead to an increase in customer lifetime value (CLV). Customer Lifetime Value is the contribution of the net profit a customer makes to your company over time. You can divide your customers into three main categories: unprofitable, profitable, and very profitable.

A higher CLV means that each customer generates more revenue for your business without you having to invest anything extra, which also means that your company has more money to spend on acquiring new customers. Selling products is one of the most effective ways to turn shoppers into very profitable customers and keep them coming back.