Add-on Selling is a sales strategy in which the seller suggests additional items or services to a customer who is already making a purchase. The aim is not only to boost revenue but also to enhance the customer’s experience or customer satisfaction by offering complementary products.
We refer to these additional items as “add-ons,” hence the term.
The term “add-on sales” essentially means the same as “add-on selling”. Add-on sales emphasizes the outcome of the technique while add-on selling highlights the process of the technique.
Add-on Selling vs. Cross-Selling
The term is related to cross-selling, but not the same.
In add-on selling, the seller encourages a customer to buy items that directly complement or enhance the items they are already purchasing. In cross selling, the seller recommends additional products or services from different categories but still related to the customer’s interests.
An example of add-on selling is suggesting a protective case that’s designed for a specific phone model that a customer is buying.
An example of cross-selling is suggesting batteries for somebody who is buying a toy that requires them.
How are these examples different? Batteries can be used for toys, remote controls, and many other things. A model-specific protective case for a phone, however, is used only for one product (not many).
How Does Add-on Selling Work?
Imagine you’re at a car dealership purchasing a new vehicle. After you’ve chosen the model and trim level, the salesperson might suggest fabric protection for the seats, upgraded floor mats, or a roadside assistance package. These are examples of add-ons.
The salesperson should wait until after you have decided to buy the car before suggesting add-ons, not before. This builds trust and ensures that you don’t feel pressured.
Benefits of this Selling Technique
Increased Sales: The seller’s primary goal is to increase the amount each customer spends.
Better Customer Experience: Customers like sellers who are aware of what their needs are and try to meet them. Suggesting relevant add-ons shows that you care.
Loyal Customers: Add-on selling helps boost customer loyalty. Customers are more likely to return in the future if the seller helped them get exactly what they needed.
Tips for Successful Add-on Selling
Know Your Products/Services: You should be able to explain why the add-on is a good fit for the customer’s purchase. What you tell them must be the truth.
Focus on Value: The customer must feel that the add-on gives their purchase more value.
Don’t Be Pushy: If you have presented the benefits of the add-on and the customer is not interested, do not force the issue.
When done properly, add-on selling is a win-win for both the seller, who has a boost in income, and the customer, who gets the best possible experience.