What is upselling in retail and how do you implement it?

The definition of upselling is ‘a sales technique used to influence a customer to spend more money than they intended, either by purchasing another item in addition to the one they intended to buy or an upgraded or premium version’. 

It’s important to listen to the customer and consider who they are to convince them of the value in a more expensive item, as the higher the spend, the more value is needed to justify the purchase. Implementing upselling as a sales technique can ultimately drive an increase in revenue and enhance customer service.

Statistics on upselling in convenience retail  

• Upselling can increase promotional purchasing by between 200% and 300% 
• If convenience store staff suggested a product to shoppers, 38% would be likely or very likely to buy it if it was on promotion, and 27% if it was a new product 
• 91% of convenience retailers believe shoppers would buy a suggested promotion 

For more details on the figures visit Convenience Store Magazine.  

How to upsell in a convenience store  

To upsell to a customer, you first need to determine what the customer’s needs are, then take a problem-solving approach to provide the perfect solution. Build rapport with the customer as soon as they enter the store and ask them what they want before trying to provide a solution.  

Engage with the customer to establish a connection and make them feel comfortable - this will improve the chance of them trusting your help.  

Staff should be armed with a list of upsell options that can be offered to customers. These should focus on a few key benefits for a range of products. This is to highlight the value and aid the justification to spend more money.

Here are some upselling examples that can be used in your store.  

• Incentivise your customers to buy more – increase motivation to purchase a product by offering a reward e.g. Buy 2 and get 1 free.  
• Bundle products to offer more value – increase the perception of value by pairing products with a similar purpose together and offering a promotional price. An example of this would be a meal deal where a sandwich, confection item and drink are offered as a package.  

Read more details on techniques to try in-store at Retail Express.  

Convenience store tips and tricks 

Upselling is about providing a customer with useful information about a relevant product, at the right time, that presents beneficial results for everyone.  

There are lots of tips and tricks on how best to upsell in a convenience store. We’ve listed a few below: 

Availability  

When deciding on products to use in a promotion, review your inventory stock. Create offers for well-stocked items or promote similar products to an item running low on stock.  

Seasonal 

Make your promotions relevant to the time of year or upcoming holidays.  

Visual 

A visually appealing promotion will capture the attention of a customer, the more unique and eye catching the better.