How to Use Data Driven Marketing to Upsell to Your Customers

By David Semmelroth

When using data driven marketing you probably notice you have a spectrum of products that vary in price and quality. For example, new cars vary widely in price depending on the class of the vehicle, for example. This variation is largely due to the fact that your customers vary widely in what they can afford or are willing to pay.

Generally, you would like your customers to buy as far up the price scale as is reasonable or possible. Once they’ve purchased or are committed to purchase a certain product, it’s sometimes quite effective to try to push them just a little bit higher up the scale. This technique is known as upselling.

The psychology behind upselling is fairly simple. Once the customer has decided to pay the asking price for a particular product, they’re resigned to spending that money. At this point, getting them to buy a slightly more expensive product is all about focusing them on the incremental cost of upgrading their purchase.

If this cost is small relative to the cost of the product they want to buy, you have a chance to convince them that it’s worth it.

There are two keys to successful upselling:

  • Do it in manageable bites. You’re typically not going to sell someone a car that is twice the price of the one they’re initially interest in.

  • Upsell them into something that fits their tastes and needs. Strong-arming them into something they’ll regret buying creates bad blood and ultimately a customer-retention problem.