Customer upselling gets upgrade from AI, analytics
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Upselling strategies unleash unexpected sales
Most everyone at one time or another has spent more money than anticipated for a product based on a whim, change of heart or irresistible impulse. At least, it may seem like that to the buyer. But to the retailer, it could be part of a coordinated and successful customer upselling plan that combines time-honored sales techniques and advanced technologies that can analyze and predict in-store and online buying patterns.
There's nothing new about offering coupons or promising a better price with a product or service upgrade. What has changed and is constantly evolving is the ability to collect vast amounts of customer data on sentiment, preference and transaction history, the software to analyze that information, the artificial intelligence and machine learning systems to act on that analysis, and the delivery system that targets the right customer with the right customer upselling message.
For businesses that offer upsells and recurring products, 70% to 95% of revenue is derived from upsells and renewals, and just 5% to 30% of revenue comes from initial sales. Upselling increases revenue by 10% to 30%, and upsells are 68% more affordable than acquiring a new customer, according to content marketer Bill Widmer.
As a result, CX catch phrases like the customer journey, personalization, voice of the customer and up-and-coming emotion AI are taking center stage when companies approach B2B and B2C customers browsing the web or walking the store aisles. Gartner reported that retailers are considering installing computer vision emotion AI technology in their stores "to capture demographic information and visitors' mood and reactions."
This handbook examines what companies are doing to enhance their revenue streams through customer upselling tools and tactics. We also look at sophisticated AI technologies like sentiment and emotion analytics, which can improve customer engagements, increase brand loyalty and, ultimately, promote repeat sales.