Upselling is one of the most important ways to grow your business. Statistically speaking, upselling is 20 times more effective than cross-selling — and according to Marketing Metrics, 50% more likely to be successful when compared to selling to a new customer.
So why isn’t every B2B SaaS business improving its sales through upselling? Well, it is hard to do it right!
That’s why we are here to give you 8 easy tips on the right way to upsell for B2B SaaS companies.
1. Create Customer Segments
Try to create customer segments using behavioral data when upselling. Think about Netflix, for example, that capitalizes on their user data to upsell the next TV show or movie that they know their consumers will be interested in.
Break your customers down into different segments and this will allow you to group them based on behaviors and interests. From this, target your upselling in a way that will appeal directly to them.
2. Design to Encourage Discovery
Your design should encourage your customers to keep discovering new features. You want your products to grow alongside your users — keep the entry barriers low and ensure that the product is simple enough for users to become engaged quickly.
At the same time, you don’t want your product to be so basic that users get bored. Design something that has more to it than is initially scene so that they are continuously discovering new functions over time and will therefore be willing to listen to potential upgrade options.
3. Communicate your Value Proposition
Don’t underestimate the importance of communicating your value proposition. By creating a compelling value proposition for your upsell, you’re telling the customer that this is a great product and they need to buy it — making them think more about the value that it is providing instead of the cost.
If you can get them to have that mindset and focus on the value that your service provides, you’ve won half the battle and are on your way to a successful upsell!
4. Perfect Your Timing
Timing Is everything when it comes to upselling for B2B SaaS companies. Offer your customers the upsell when you know they needed the most — Take the lead from Zoom, who offers their video conferencing services for free for a limited time, and then once the time has elapsed, they upsell the paid subscription.
You can also offer upsells when customers are succeeding with your product or you are about to launch a new and improved integration.
5. Incorporate Self-Service
Incorporating self-service to upsell in conjunction with your sales team is a great technique to boost your success. Allow your customers to upgrade themselves and you’ll be surprised how many of them do so!
The idea with this is to not wait for your sales team to reach out to them with an upgrade opportunity if they are already interested in it themselves.
6. Use Customer Feedback for Upselling
Customer Feedback can help you upsell by giving you a better understanding of what your target audience’s needs are. Which features do they like and which ones do they think needs improvement? These valuable insights can help you determine which features can best be upsold and which others might need additional improvements before doing so.
7. Upsell When Customers are Happy
Keeping in line with the previous tip, try to offer the upsell when customers are happy. If your customers are happy that means they’re seeing the value that your SaaS product provides and will likely be more open to purchasing an upgrade.
You can tell when customers are happy by tracking things like NPS scores, which refers to how likely they are to recommend your B2B SaaS company to others.
8. Personalize your Upsell
Our last tip is to personalize the upsell offer by taking into consideration the products and features they already like. Make them feel like the offer was created just for them — use words like you, your, and yours, so that the customer can imagine themselves already using the product!
If you’re going to offer upsells for your B2B SaaS company, be sure that you do it right. Use these tips to take your upsell game to the next level — and start converting more business!