Upselling & cross-selling have undeniable benefits for every company, no matter what the industry type is.
One of those benefits is obvious: more revenue.
The concern is, savvy customers can now see right through your “You may also like …” line and then stick with their original purchase object. And this can go even tougher if you work in customer success management — where your core job is not technically sales, but to look for opportunities to make deals happen on calls or emails with customers.
If your customer had a good experience using your product for a few months, it would be best to mention another product they can use alongside and get better results.
To see success with your product suggestions, try customer delight. When you can convince your customer that your tips are for their benefit, you can master the art of upselling & cross-selling. But how are you going to do that?
Keep reading to learn how to use upselling & cross-selling to your advantage.
Upsell vs. Cross-Sell
Both upselling & cross-selling involve selling products or services and the original intent to purchase. With either selling, remaining ethical, and solving the customer’s concern should be the top priority. Remember: To not upsell or cross-sell was not necessary.
What is Upselling?
Upselling is nothing but a suggestion of any other product to be purchased complimentary to the original purchase. For instance — a scanner when a printer is purchased or a conditioner when shampoo is selected.
Upselling increases key sales metrics of your team, which everyone should track: average value per transaction (AVT).
This KPI tells how much revenue your team is making relative to how many people purchase products or services. One quick way to raise the AVT is to upsell and add products to suggestions when your customers need and express interest in purchasing.
What is cross-selling?
Cross-selling and upselling are frequently used interchangeably, but different scenarios with customers can call for just one specific approach over another. The word “upsell” is applied where you suggest a product in addition to the one being purchased. You put yourself at an advantage and sell more if you know the difference between the two, right.
How to Upsell and Cross-Sell
- Determine which product will get the best results.
- Offer upsells and cross-sells that make sense.
- Upsell and Cross-sell with integrity.
- Demonstrate value before making the pitch.
- Reward customers for their loyalty.
- Determine which products get the best results.
You don’t want to bombard them with product suggestions they have already purchased from your company. Use the opportunities and techniques only when the time is correct since there are already limited opportunities.
It’s not surprising that upselling works much better than cross-selling. Once your buyers have a product in mind, they are not distracted easily. But a product or service that is better? That can get you some attention.
A cross-selling option could still make that shampoo selection better. With a conditioner, hair fall products, frizz-free serums, and other items can help the buyer fully happy with their hair after the purchase.
1. Offer upsells and cross-sells that make sense.
Suppose you’ve ever waited on the phone for a customer service rep to help you solve a simple problem, only for them to offer a million “opportunities” before asking for your information. In that case, you can understand the frustrations your customers might feel. So suggestions of a cross-sell or upsell that’s entirely out of left-field will not only frustrate them — it could endanger their relationship with your company.
Your suggestion has to fit the customer’s exact needs. They are discussing them with you. Be a good listener before you offer a cross-sell or upsell.
2. Upsell and Cross-sell with integrity.
If customers at any point say that something’s not quite right, they’ll bolt. The more transparent you are in helping them, the more likely those customers will stick around and become your loyal advocates.
Be outspoken and honest if you are trying to upsell or cross-sell while communicating with them. Thus transparency about pricing and contracts and building rapport with your customer will probably make them purchase your upsell or cross-sell offer.
3. Demonstrate value before making the pitch.
Once you’ve determined that your offer to the customer makes sense, your work isn’t done. You now need to ensure you can demonstrate the product or service’s value to your customers’ lives.
Use customer case studies, testimonials, and customer reviews. Make sure the value is crisp and clear to your customer so they can decide on their own — without any sales push, but by making a logical and rational choice.
4. Tap into your network for more opportunities.
The ultimate goal of this exercise is to solve a customer’s pain point and deliver real value. If you are using channel sales to drive revenue, you’ll find these sales reps to identify natural opportunities for upselling & cross-selling. Partners who sell your product or service on your behalf have access to other networks that your in-house team might not. You may leverage additional items that complement the primary purchase, adding more value to the customer.
5. Reward customers for their loyalty.
If you have successfully closed an upsell or cross-sell, congratulations!
However, the task still isn’t over.
This is important — make sure to reward your customers for spending more — and trusting your guidance. Some ideas for showing gratitude are:
- A Thank-you letter
- An Additional brand merchandise
- Offering a discount code or voucher for future purchase
Take your business’s revenue up and across with upselling & cross-selling techniques.
Don’t sit back on the idea of upselling & cross-selling to existing customers. Upsell and cross-sell opportunities can be equally beneficial for the customer as they benefit your sales.
The perfect time to mention such a purchase is when there is a genuine need for another product or service your company offers. With these suggestions in mind, you might be able to increase your revenue through upselling & cross-selling.
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