Business owners are highly aware of the fact that the up-sell can be where the heart of revenue lies. In retail environments, whether they are online or in real time, this tactic is frequently employed to both raise more profits, but also reduce losses. With many applications and just as many motivations behind the action, up-sells can provide profits, but they can also mar a company’s reputation.
Motives Make A Difference
In best practices for any business, an up-sell should be mutually beneficial to both the vendor and the buyer, but this is not always the case. Online vendors and smaller start-ups do have the advantage that they can tailor up-sell techniques to both appeal to clients and better meet their needs. This can create a significant distinction for making a good brand reputation among customers.
Up-sells that are purely profit motivated often lead to situations of dissatisfaction and mistrust for the company, as clients can often feel that they have been duped into a larger purchase than was needed, and also that the actual personal value of the products is not reflected in the full price that ended up being paid.
Another concern is that up-sells can create a sense of being pressured, and even customers who had already decided to make a purchase can decline entirely because of this perception. This leads to several conclusions:
- Good up-selling adds value for clients and companies
- Up-selling should be a suggestion, not a pressure
- Up-selling should be viewed as the conveyance of information – the informed customer will be pleased to make their own decisions
The online channel for sales can convert up-selling into a beneficial value added service for customers, but it also needs to appeal to needs and provide a manifest positive outcome. This can also mean that best practices in up-selling are not about the sale, but about providing information about related accessories that will enhance the function of the initial purchase consideration.