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What are Upselling and Cross Selling Sales Techniques

All You Need To know About Upselling and Cross Selling Sale Strategy

by thedigitalpreneur
April 3, 2020
6 min read
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Cross selling and upselling are sales strategies to make customers spend more money by providing more value. We will discuss what these sales strategies are, how you can use them and how they differ from one another.

but first, let’s look at what sales strategies are.

Photo Credit: William Iven 

What is Sales Strategy?

Sale strategy refers to planning, development, and management of sale by a business or individual on how to sell a product and services making maximum profit.

The sales strategy is getting the right product, offering or dealing with the right user at the right time through strategic planning.

Sales strategists are often familiar with a wide range of approaches, techniques, and tools.

What is Cross selling?

Cross selling is offering related products or services to a customer making a purchase. With this technique, the salesperson convinces the customer to purchase another product or service to complement the existing purchase.

Cross selling isn’t just all about making money it is giving the customer more value to purchased items. For example, when shopping for a podcast microphone, you will get an offer or deal for headphones, a mic stand, and many other tools to match your existing purchase. Cross selling technique isn’t only to use online, you can use this strategy offline. We can use this sale technique in any industry.

The benefit of Cross Selling

More Sales/Profit

The first benefit of any sales strategy is to make more profit. Cross-selling increases your sales by suggesting more related products or services the customer would need to go with the existing purchase.

Promotes Innovation

You can use this opportunity to sell products or services that are not popular. You can suggest customers to new or old items in your business. This could open new ways to sell stocks that are dead.

Offers Convenience and Flexibility

Cross-selling offers convenience to your customers, this way a customer need not go to a different sales page, to get other products or services, they can get all they want from a single page.

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Increases Customer Satisfaction

Suggesting what your customers need increases their level of satisfaction. Cross selling would make your customers satisfied and happy to return to your business because of the value they are getting.

Example of Cross Selling

  • A salesperson at an electronics store offers you a home theater sound system to go with the Tv set you purchase.
  • A mobile service salesman offers you a data connection for $10 monthly to go with the smartphone you are buying.
  • A book store salesperson offers you a whiteboard mark to go with the whiteboard you want.
  • You are shopping on amazon for the amazon echo and you get a message below; people also bought the echo stand.
Cross selling example

Shopping for HP OfficeJet Wireless Printer on Amazon.

cross selling example offer

Got a cross-selling offer to buy the HP instant Ink with the printer. This is what a great cross-selling strategy looks like.

What is Upselling?

Upselling is suggesting a higher or expensive version of a product or service to customers. Upselling offers a better value of the item the customer is looking to buy. The customer is giving an option to upgrade to the same service or product with higher benefits, quality or size. This sales technique increases the order value and increases customer loyalty.

You need to convince the customer why the product or services are better than what he or she has chosen. We can use the upselling technique in any industry both online and offline.

The key to success in both is to truly understand what your customers value and then respond with products and corresponding features that meet those needs.

Big commerce

Benefit of Upselling

Balances Growth Between New and Existing Customers

They say it is easier to sell to an existing customer than to sell to a new one. You can balance growth with existing and new customers by offering them more value. If you get your upselling right, customers would feel you care for them and this would make them returning customers.

Broadens Choice of Product and Services

When customers are offered different options for products or services, their view of the company becomes positive. You would have the advantage to sell a higher version of your product or services; From freemium to the premium, from less expensive to expensive, and from regular to Vip.

Customer Knowledge

With upselling, you would know what type of customers you have and what their needs are, what they want, and what features they need. You can then tailor your brand to match the customer’s needs.

Adding Real Value to Customers

It would satisfy customers by getting the right product and services. It would please the customer that the company has taken time to understand their wants and needs. Customers will always walk away more satisfied.

Example of Upselling 

  • An airline company you regularly travel with suggest you go for travel membership, so you need not go through the hassle of getting tickets and visa, they would take care of everything for you.
  • A SaaS software company offers you an upgrade from a standard plan to the premium, so you can get the full feature of their services.
upselling example

Shopify asks you to upgrade from a basic plan to an advance plan.

key point

Cross Selling: Offers related items to a customer making a purchase

Upselling: Offers higher version or premium item upon purchase

Difference Between Upselling and Cross Selling

Both sales techniques have two things in common: One is to provide additional value to customers two to make more profit.

Upselling

Similar products or services but more premiums. For example, if a customer is buying a shoe, you can recommend them a more expensive shoe (Italian shoe, gold shoe, water-resistant shoe).

Cross Selling

Related products or services, for example, if a customer is buying a bed, you recommend them bed sheets, pillows, bed lamps and many more.

Let us know what the sale strategy you use and how does it increase your sale?

Tags: sales stretegy
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