What is cross-selling and upselling? Learn how to improve your sales
Do you know how to make the most of your customers’ buying potential? Learning what cross selling and upselling are and start using the methods can serve as a great lever for your business.
Consumers are constantly looking for better products with lower prices. If you stand out in the market and win the trust of the client, it will be easier to guarantee sales success. It is undoubtedly an arduous task which you should carry out every day. It is good to note that to achieve success, you can never say that using several methods of selling is a waste of time.
In this article you will learn what cross selling and upselling is, how they work and how to apply them in your day to day business. It is worth mentioning that these two methods can – and should – be used by any company, regardless of the area of operation and size.
What are you going to read in this article?
What is cross selling and upselling: knowing new sales techniques
To know what these two important methods are about, it is necessary to have a basic knowledge. It is also worth remembering that both cross-selling and up-selling can be used by online or physical stores, in both cases, their results are extremely efficient when used well. Check out the examples for each of the following methods:
What is cross selling?
Cross selling is the sales method in which you offer customers products/services that are complementary to those that have already been or are being purchased at the time.
- When you make an online purchase and receive the following notification: “Customers who bought the same product as you, were also interested in the ‘x’, ‘y’ and ‘z’ products.
- Or when you go to a fast-food chain and ask if you want “a follow-upto your snack with a lot of French fries or a drink”.
What is upselling?
Upselling happens when you offer customers premium products, which is more expensive. In this method of selling, you encourage your consumer to invest a larger portion of money, however, ensuring that he/she will have a better return on the service or product purchased.
The upselling consists in suggesting an additional to what is being acquired.
- By visiting a website and choosing to buy a product, the company will inform you that “if you pay $ 50 more, you can buy a better product.”
- Also using the fast food example, a very common way to use upselling is when the seller asks if you want to “pay $ 5 more for a portion of French fries or a full-sized drink.”
Cross selling and upselling: the method that works to sell products or services
One of the most positive aspects of these sales formats is that they work for services and products (as seen in the examples above). They also work for virtual or face-to-face stores.
To get an idea of the importance of these sales methods, check out the following data: It is estimated that 35% of Amazon.com sales will happen through cross selling, upselling and user recommendations.
If you still do not use these methodologies in your company, it’s time to start.
3 tips to implement cross selling and upselling
Now that you know what cross selling and upselling is, it’s time to put them into practice.
For these methods to work as expected, you need to follow some important tips. We’ve selected the top tips for you to apply cross selling and upselling to your business:
1. Maintain simplicity
We know that it’s cool to offer some cross selling and upselling options. However, do not complicate the decisions for your client. Strategies should sound natural. For example, did you sell a running shoe? Also, tell us that your store has socks available – this is a cross selling technique.
If you want to apply upselling in the same situation, before closing the deal, you can show the customer a shoe that costs a little more, but has a longer duration, is aesthetically more attractive, etc.
Conclusion: do not complicate the situation! Always choose to show the customer products and services that relate to what he or she is looking for. He needs to feel that he is making a good deal – not being pushed/forced to take any action.
2. Offer services/products combos with differentiated prices
This is a strategy of cross selling and upselling that is widely used by restaurant chains. But it can also be made in different product stores and service providers.
On some occasions, it is more attractive for the customer to be able to purchase multiple products/services in one package than to buy one item at a time.
This advantage is even greater when the customer can purchase these items for a better price than the original.
3. Train your team
It is not enough just to understand what cross selling and upselling is. It is essential to have well-trained salespeople to perform good strategies. They need to know the concepts and applications of these methods.
They should also know how particular product or service will bring benefits to the customer. That way, they will know what to offer customers and when is the best time to make an offer.
It is also worth remembering: if your company offers services/products online, this strategy is still valid. Use the technology in your favor to put these methods into practice.
Implementing cross selling and upselling in your company
Now you know what cross selling and upselling is and the importance of deploying these sales methods in your company. To do this, you must have well-trained professionals and quality products/services that complement customer’s request or serve as an additional quality.
Got any questions about the methods of cross selling and upselling? Contact us and we will solve this issue!