What is Up Selling? | What is Cross Selling | Difference Between Up Selling and Cross Selling

What is Upselling?

Upselling is a sales technique whereby a seller induces the customer to purchase more expensive items, upgrades or other add-ons in an attempt to make a more profitable sale.

Example:

If a customer is at Fabric shop to buy a lawn printed shirt. Offer and convince her to buy a digital printed shirt.

ü  If the proposal clicks with the customer and she agrees to buy both; the target is achieved.

Upselling Tips:

1.    The additional products offered should be more expensive than the main product.

2.    Provide your clients with good customer service. 

3.    Carefully keep track of customer’s behavior and needs because this technique is more risky than the cross-selling technique since you are trying to sell something more expensive.

4.    Underline the added value of the expensive product.

5.    Another important aspect is helping the client decide to buy as a result of a pleasant experience.

What is Cross-Selling?

The practice of selling or suggesting related or complementary products to a customer, usually from different categories.

Example:

·       If a customer is at Fabric shop to buy a shirt. Offer and convince her to buy a matching tights as a complementary product.

·       If the proposal clicks with the customer and she agrees to buy both; the target is achieved.

Cross-selling Tips:

·       Identify his future needs and map the opportunities.

·       Ask for permission to pitch other products as per his needs.

·       Do not forget to showcase saving options like discounts, offers, etc.

·       Do not force him to buy but make him buy your products.

·       Choose correctly complementary products.

·        List best-sold products.

·       Inform your clients correctly about the opportunity to buy an additional product without forcing them to wonder or search.

·        Keep track of refusals to accept cross-selling or up-selling offers.

The Do's and Don'ts of Upselling and Cross-Selling:

Do’s

·       Be sure highlight discounts for buying in quantity.

·        Everyone is looking for bargains these days so be sure to highlight sales, special offers and other discounts.

·       Stay relevant. Make sure the product you are trying to cross-sell actually relates to the product the customer is purchasing. Offering a reading lamp for a desk makes perfect sense.

·       Do test your cross-selling and up-selling to see which strategy and combinations work best for you. Try mixing and matching different items to find the combination that generates the most amount of revenue.

Don’ts

·       Don't use the cross-sell tactic to simply unload unwanted inventory. If the item is a discontinued item, be sure to let the customer know.

·       Don't interfere in the original purchase process.

·       Don't try to cross-sell a new product. The features and benefits of a new product take time to explain. Cross-sell purchases are typically impulsed buys that are no-brainers for the customer.

·       Don't be pushy when it comes to add-on sales. These should be recommendations. Put your customer's interests first and view cross-selling and up-selling as a means to educate your audience.

Finally, don't miss out on the opportunity to cross-sell and up sell or you risk leaving revenue and profit per order on the table!