When to upsell to a customer
Not sure what’s the best time to upsell a customer? Here are four approaches to help you identify existing customers who will be more likely to spend extra.
Your proven customers involve anyone that’s used your product for a while and are seeing success. As you test out upsell techniques, you can track how long a customer needs to be with you and how much success they need to see before they’re more likely to purchase more from you. Then iterate on your upsell techniques (keep reading as we share specific upselling techniques).
If you see a customer who can give you a warm introduction, just ask. Build requesting referrals into your sales process.
Consider also seeking out customers already referring other businesses to you. Most leads call out when they’re referred by someone else, so review the information captured in your CRM.
Companies providing you with more business are the ones experiencing the most perceived value from your services. They are prime to sell to if you have a relevant offer.
Another clear contender for upselling is customers you can see based on any number of growth factors. A team may expand quickly after they received an investment such as a Series A. Your company may even have an existing offering that provides more advanced solutions that help accelerate its growth.
Another clear sign that a customer is scaling: if the amount they’re spending on your product or service increases over time. For example, if the number of users subscribed to a SaaS product doubles in a year.
Using CAG framework
Consider also structuring your upselling strategy around the CAG framework. This method involves analyzing:
How much (or how often) a customer consumes your product/service?
What features have they adopted?
Where can you fill the gap?
Over time, you’ll be able to see more clearly what successfully upsold customers have in common. Then you can finetune when to upsell further. You may find specific events need to happen first before you can upsell.