What is upsell rate?
The upsell rate measures the proportion of customers buying additional products or services during or after their initial transaction. A high upsell rate shows you’re successfully persuading customers to buy more, leading to increased revenue and enhanced customer loyalty.
How do you calculate your upsell rate?
Calculate the upsell rate by dividing the number of customers accepting upsell offers by the total number of customers, then multiply the result by 100 to get a percentage.
- Upsell customers / Total customers x 100 = Customer upsell rate
To calculate this in terms of revenue, use your financial figures instead:
- Upsell revenue / Total revenue x 100 = Revenue upsell rate
Tracking the upsell rate helps you evaluate the success of your upselling campaigns, identify high-performing tactics, and optimise your future sales approaches.
What is a good upsell rate benchmark?
A good upsell rate benchmark usually falls between 15% to 30%, depending on the industry. Anything above this is exceptional.
Rethinking upsell rate strategies to suit the age of AI
Upselling is far easier when you use AI, for many reasons:
- You can reach customers instantly at the checkout since an AI assistant can pop up whenever they make a purchase to promote upgraded products
- You can get instant feedback on your upsell offer and improve it or change it if customers aren’t convinced it’s the most valuable or relevant choice for them
- You can get to know your customers better with an AI assistant since it transforms your insights, giving you increased knowledge about what customers want and so what upsell offers are most likely to be successful
- You can personalise every upsell offer, since an AI assistant remembers everything your customers have bought in the past, plus their habits and behaviours
