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Beginner

What is an upsell

Also known as: upselling

Definition

An upsell is an offer to buy a higher tier or bigger version instead of the basic one, so the same sale is worth more. An add-on next to it is a cross-sell.

Why it matters

Acquiring a new customer costs far more than growing a sale to someone who already chose you, because you do not pay again to reach them.

Common mistakes

Offering the expensive upgrade before the customer has felt the value of the basic version.

Related terms

Worked exampleIllustration

A clinic's second visit

Receipt, visit 1

  • Basic facial₪500
  • Came from an ad, the ad cost is paid on this visitOnce

Receipt, visit 2

  • Basic facial₪500
  • Extended facial, instead of the basic one₪850
  • The upgrade+₪350

What the clinic did

  1. Visit 1 A customer finds the clinic through an ad and books a basic facial. The clinic paid for that ad once, to bring her in.₪500

  2. Visit 2 When she books again, the clinic offers the extended treatment instead of the basic one: the same facial plus 30 minutes and a mask. She takes it.₪850

  3. Difference The second visit is worth ₪350 more, and no new ad was paid for it.₪350 ÷ ₪500 = 70%

  4. Contrast Another customer keeps the basic facial and adds a home care kit for ₪350. The total is the same, and that is a cross-sell.₪500 + ₪350 = ₪850

An upsell makes the same sale bigger. A cross-sell adds a second one next to it.

Illustration

Replace it, or add next to it

Upsell: the extended facial replaces the basic one. The same visit is worth ₪350 more, 70% up, and no second ad was paid for it.

The clinic's two second visits from the example. Both come to ₪850. Switch between them: the upsell replaces the basic facial, the cross-sell sits next to it.

Definition

An upsell is an offer to a customer to take a higher tier, a bigger size or an extended version of what they are buying, in place of the basic one. The extra replaces the basic item, so the same sale grows. An item bought next to the basic one, such as a home care kit next to a treatment, is a different move, a cross-sell.

Why it matters

An upsell raises what each visit or order is worth, so the same customers bring more revenue. It still costs something: your time, and sometimes a discount or extra service.

Directly related: LTV, CAC, Retention.

An upsell campaign for existing customers

An upsell campaign offers the upgrade to people who already bought, instead of waiting for each customer to ask. Who: customers who used the basic version and got value from it, not everyone on the list. When: at the moment they would buy again anyway, the next booking, the renewal or the reorder, because then the upgrade replaces something they were already about to buy.

To stay an upsell, the offer has to replace the basic item with a bigger one, like the clinic above offering the extended facial instead of the basic one on the second visit. Offering a home care kit next to the same treatment is a cross sell campaign, and it is measured separately.

Count who received the offer and who took it, and compare the average sale of those customers with the months before. A campaign message by email, SMS or WhatsApp is advertising under section 30A of Israel's Communications Law, see the question about it below.

Improvement tips

  • Offer the upgrade when the customer comes back or books again, after they have felt the value of the basic version.
  • Make the upgrade a clear step up of the same thing, such as a longer treatment or a bigger package, and say the difference in one sentence.
  • Write down who was offered the upgrade and who took it, so you know whether the offer works.

Common mistakes

  • Pushing the upgrade on everyone, whether it fits them or not, which can damage the relationship.
  • Sending upsell offers by SMS or email to customers who never agreed to receive advertising. Israeli law has rules for this, covered in the questions below.

Related terms

FinanceIntermediate

LTV

LTV (customer lifetime value) is the gross profit one customer brings over the whole relationship. You compare it with the cost of winning that customer (CAC).

MarketingIntermediate

CAC

CAC (customer acquisition cost) is what you spend on marketing and sales to win one new customer: a period's spend divided by the new customers it brought.

ProductIntermediate

Retention

Retention is the share of customers who keep buying or using your product over a set period, counting only those you already had at the start.

SalesBeginner

NPS

NPS (Net Promoter Score) is a loyalty score from one question, how likely you are to recommend us from 0 to 10: the % of 9s and 10s minus the % of 0 to 6.

FinanceBeginner

Gross margin

Gross margin is the share of revenue left after the cost of goods sold: (revenue - COGS) ÷ revenue × 100. At 60%, 60 agorot of each shekel remain.

Quick check

Which of these is an upsell?

Choose an answer

Frequently asked questions

Do I need to design an upsell strategy before I start my business?
Not a strategy, one idea. Decide what the step up from your basic offer is, such as a longer session or a bigger package, so you have something ready when a customer comes back.
When does upselling first become relevant for a new company?
When customers start coming back or ordering again. The best moment is when they come back happy with the basic version, for example when they book a second visit, not at the first hello.
What is a simple way for a startup to create an upsell offer?
Take what you already sell and make a bigger version of the same thing: more time, more scope or faster delivery. The customer buys it instead of the basic version, not next to it.
Should a new business focus on upselling before getting new customers?
No. An upsell grows a sale that already exists, so first you need customers who bought the basic version and were happy with it.
Why does upselling matter for a business already running?
Because you do not pay again to reach a customer who already chose you. The upsell still costs your time, and sometimes a discount or extra service. In the illustrative clinic on this page, a second visit upgraded from ₪500 to ₪850 brings 70% more with no new ad.
What goes wrong when an operator ignores upsell opportunities?
Every visit stays at the basic price, and all growth has to come from new customers, who cost more to win. Customers who wanted more may buy the bigger version elsewhere.
How do I train my team to upsell without stopping day-to-day work?
Write one short line per service: when to offer the step up and what it adds. Whoever talks to customers uses it when they book again, with no extra meetings.
What should I do if my customers react negatively to upsell pitches?
Check two things: the timing and the fit. Offer the upgrade only to customers who come back, and only when it solves something they asked about. Stop offering it to everyone.
What does upsell actually mean in plain words?
Offering the customer a bigger or better version of what they are buying, instead of the standard one. A large size instead of a regular one is an upsell. Adding a drink next to the meal is not, that is a cross-sell.
Is upselling risky or bad for customer relationships?
Not if the upgrade really helps the customer. It hurts the relationship when it is pushy, badly timed or does not fit what they need.
Can I send an upsell offer to my customers by SMS, email or WhatsApp?
An offer by email or SMS to a customer who already bought from you is still advertising under section 30A of Israel's Communications (Telecommunications and Broadcasting) Law, 1982. Without their prior consent the law allows it only if they gave their details when buying, were told the details would be used for advertising, were given a way to refuse and did not, and the offer is for a similar product or service. The law does not name any app. It limits the action itself, sending advertising without consent, so the same rule, and the same exception, apply whatever app sends the offer, WhatsApp being one example. Educational material, not legal or tax advice. Check your own case with a lawyer or an accountant.
What is the difference between an upsell and a cross-sell?
An upsell replaces the basic item with a bigger or better version of it. A cross-sell adds a different item next to it. At the illustrative clinic, taking the extended treatment instead of the basic facial is an upsell, and adding a home care kit to the basic facial is a cross-sell, even though both come to ₪850.

Sources: Communications (Telecommunications and Broadcasting) Law, 1982, section 30A, including the existing customer exception in section 30A(c) (nevo.co.il), Calltouch, "Cross-sell, up-sell и down-sell: что это такое, как использовать техники повышения среднего чека" (calltouch.ru), MGUTU, "Допродажи: чем отличаются upsell и cross-sell и когда их предлагать" (mgutu.ru)

Last reviewed: 2026-09-27

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