What is an upsell?

An upsell refers to the practice of encouraging a customer to consider purchasing a more expensive item or service than what they initially planned to buy. This approach aims to enhance the customer's experience by introducing them to higher-quality products or premium services that may better suit their needs or preferences. By highlighting the benefits, features, or added value of these pricier options, a salesperson can effectively guide customers toward making more informed purchasing decisions.

In a retail context, upselling can involve suggesting upgrades, premium versions of products, or additional services that complement their initial choice. This practice not only benefits the retailer by increasing average transaction values but also often leads to higher customer satisfaction when they receive something that better fulfills their requirements.

Considering the other options, reducing the price relates to discount strategies, which are different from upselling. Bundle deals involve offering multiple products together at a reduced price, rather than focusing on upgrading a single item. Providing free gifts with purchases can enhance customer satisfaction but does not involve persuading the customer to spend more on a premium product. Hence, the essence of upselling lies in promoting higher-value options, making the selected answer the most accurate representation of this concept.