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Sales Glossary

The sales industry is always changing and evolving. Keeping on top of those changes can be tough. The Vidyard Sales Glossary is your ultimate guide to important sales terms, definitions, concepts, slang, insider business jargon and more to keep you up to date with the latest in sales industry lingo.

What is an Upsell?

Upselling is a sales technique used to convince existing customers to buy more expensive versions of the product they are using. For example, if a customer is signed on for the lowest tier subscription a company offers, a sales rep will try to upsell them to a mid or high tier version instead.

Why is Upselling Important?

Upselling is important for both sales reps and their customers.

The Importance of Upsells for Sales Reps

On the business side, a successful upsell equals more revenue. If a customer was paying $50 a month for a base subscription model but decided to upgrade to a premium plan for $200 a month, that’s $150 of extra revenue each month from just one customer. There will always be cancellations and downgrades, but upselling counteracts that lost revenue and ensures businesses stay on track.

Upselling also helps with customer satisfaction and retention. A good sales rep knows exactly what their customers need to succeed. When attempting to upsell, ask what pain points your customer has been experiencing, or what features would make their job easier. Then, show them what options best meet their needs. By understanding their specific wants and needs you can easily upsell, generate more revenue, and ensure your customer’s happiness.

The Importance of Upsells for Customers

A customer’s first reaction is usually “no thank you.” It’s common for them to want to save money instead of spending more. However, in many cases, an upgrade offers more help than hindrance.

As mentioned above, a higher tier with additional features may help address issues they’re experiencing. It’s important for a customer to fully understand how an upsell will help them.

In some cases, it may also be more affordable, especially if prices are set to increase. If a base subscription price is going to increase, but higher tier subscriptions are staying as is, it makes more sense to upgrade for additional features rather than pay the same amount and gain nothing of value.

Again, a good sales rep will recognize these opportunities and communicate them effectively to their customers, ensuring they’re happy with what they’re paying for.

How to Successfully Upsell

Research and Communicate

To successfully upsell you need to be able to convince your customer that a premium version of your product is better than the model they currently have. You’ll likely be met with sales objections, so be prepared.

Conduct research before and find out exactly what your customer’s needs are. Find creative solutions that an upgraded version can offer and tell them about it. During these conversations, ask insightful questions and actively listen. You can also use videos to demonstrate the differences between tier upgrades and let the product speak for itself.

Knowing exactly what a customer needs, and how your product can help, is essential when upselling.

Follow Up on Sales

If a new customer recently purchased your product, follow up and see how they’re enjoying it. Is the base model sufficient for their needs, or do they need additional features? They may be initially testing the waters to determine if the product is right for them. Let them know what else you can offer to meet their needs.

Offer Promotions or Discounts

Promotions and discounts are determined by management, but if they’re available to offer, a sales rep should use them to their advantage. Getting a customer to spend more money can be difficult, especially if they have a limited budget. Offering a discount while upgrading is key. They’ll be more likely to accept your upsell, and if they’re happy with the additional features, will likely pay the full price for a future renewal.

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