What are add-on sales?
Add-on sales are additional products or services added to a customer’s original purchase. Generally, sales representatives recommend add-on sales after confirming what a customer is going to purchase so they can make well-informed suggestions to support the product or service.
In some instances, add-on sales are also referred to as upselling.
Many businesses leverage e-commerce platforms for their upselling efforts while managing all operations related to online sales of products or services on a single, unified platform.
Examples of add-on sales
Many types of add-on sales exist across markets and industries. Below are some common examples:
- Warranties: It’s common for businesses to offer a warranty on products such as electronics or appliances at the time of purchase. These are offered at an extra charge and can be valuable for both the seller and buyer. Companies often use warranty management software to handle the details regarding product warranties.
- Product accessories: When purchasing items like cell phones, sales representatives may offer customers product accessories such as screen protectors as add-ons. Offering product accessories can secure more spending and provide customers with items they need.
- Upgrades: An upgraded add-on is a higher standard or improved version of a product or service. A car salesperson may recommend upgrades to a buyer once they’ve solidified the type of car they want to purchase. Heated seats are an example of an upgraded purchase.
Benefits of add-on sales
Add-on sales benefit both businesses and buyers. Below are some of the benefits stakeholders can expect:
- Increased profits. Companies can sell a broader range of products and services and more of them in fewer transactions when they attach add-ons to other purchases. More sales lead to increased profits.
- Stronger customer relationships. Add-on sales deepen conversations between sellers and buyers. Conversations with customers allow sellers to understand their customers and their needs better. These opportunities can also be leveraged to build trust, establish expertise, and enhance brand loyalty.
- Repeat customers. When add-on products and services work out well for customers, they may be more likely to return in the future. This leads to increased profits from the same buyer over time.
Add-on sales best practices
Securing add-on sales isn’t always easy. Sales representatives should follow a few general best practices for the highest likelihood of success:
- Listening actively. Sellers should have conversations with customers and listen to their needs to make the best recommendations. Engaging in active listening builds trust between sales representatives and their customers. It also prevents the push of products and services that feel irrelevant to the customer.
- Making subtle recommendations. Customers have different conversation preferences, but many appreciate subtle recommendations rather than bold sales pitches. For a gentle approach, sellers can consider sharing a personal experience about how the product or service helped them.
- Knowing the products and inventory. One of the best ways to sell a product or service is to speak about it, which means sales representatives should have an in-depth understanding of the product and inventory. It’s also important for sellers to be mindful of inventory counts to avoid talking up unavailable products.
- Discussing discounts and sales. More inexpensive products may incentivize some customers, so sellers should inform them of discounted prices and special offers in conversation. When appropriate, this is one way sellers can sweeten a deal and secure additional purchases with a customer through special, one-time offers.
Alyssa Towns
Alyssa Towns works in communications and change management and is a freelance writer for G2. She mainly writes SaaS, productivity, and career-adjacent content. In her spare time, Alyssa is either enjoying a new restaurant with her husband, playing with her Bengal cats Yeti and Yowie, adventuring outdoors, or reading a book from her TBR list.
