up-selling and cross-selling

What is up-selling and cross-selling?

No matter what field you’re working in, up-selling or Up-Selling and cross-selling will eventually increase your revenues. Some customers do not pay attention to the products they offer during the purchase and ultimately purchase the merchandise they want. However, the use of these sales techniques in the Customer Success Section can cause problems and in this case. You can use these techniques by phone calls or email sent to customers and offer other goods.

For example, if the customer is satisfied with the consumption of your products, then you can also offer your supplement and suggestion products. To succeed, however, you must also consider the Customer Pleasure category. If you convince customers that the goods you offer are beneficial to them, then you can make overcharging and sell the supplement. We will discuss the difference and how to use the up-selling and cross-selling

Difference between up-selling and cross-selling

The up-selling process means encouraging customers to buy more expensive goods. While in the cross-selling process, products related to the original product will be sold to customers. For example, the offer of buying a more expensive computer than the other one is up-selling (because it will bring more profit for the seller.) But the offer to buy a keyboard and a mouse with the computer can be cross-selling.

up-selling and cross-selling terms are sometimes used interchangeably. While each has different scenarios and ranges of customers. Generally, the term up-sell is when you offer to customers a more costly and more cost-effective product purchase.

As we have mentioned before, cross-selling means that the customer will purchase another product along with the original product. We will eventually raise the price of his purchase. For example, if a customer buys a shield case with a price of $25  when buying a phone with a price of $900, a total of $925 has purchased them.

How to run up-selling and cross-selling?

The choice between up-selling and cross-selling

You should consider that the customer already has purchased from your company. So you should not be overwhelmed with offers. You should help the customer in the shopping process by offering intelligent offers to the customer. However, remember that the opportunity to run up-selling and cross-selling is very limited. So you should use a technique that brings the best results for your business.

In general, up-selling is more effective than cross-selling because when a customer has a product in mind, he will not be eager to other goods. Of course, other products can help him with their choice. When up-selling is not usable, it is also possible to help a customer purchase by cross-selling, for example, if a customer is familiar with hair conditioners or hair boosters when buying shampoo, then he will buy a hair conditioner.


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Provide up-selling and cross-selling in Reasonable Conditions

You shouldn’t use cross-selling for any situation. For example, offering the customer’s products that you’ve been contacted to solve a simple problem will be causing discomfort and disconnect. In other words, you should provide the customer with the suggested products as needed. To ensure customer needs, you must listen carefully to his or her demands and finally suggest products or services that are useful for him.

Honesty

Customers will withdraw from the purchase if they see no clarity. The honesty and clarity of the purchasing team will increase the faithful customers of the company. So if you want to use the up-selling and cross-selling techniques, you should be honest about pricing and contracts with customers.

Show values

After determining up-selling and cross-selling, you must also show the value of the byproducts to the customer. You can use items such as customer feedback, others’ recommendations, and positive feedback from other customers to show the benefit of accessories products. Finally, ensure customers’ awareness about the value of the byproducts so they decide to buy on their free of any pressure.

Loyalty Rewarded

After selling products through the Up-Selling and Cross-Selling techniques, you need to respond to customer trust and the more money it has spent. In other words, the customer has trusted your advice and offer, so you should pay the reward for this loyalty. You can appreciate customers through the following ways:

  • Send a customer email of appreciation
  • Provide a discount code for future purchases
  • Send a reminder to a customer

Advantages of up-selling and cross-selling

The up-selling and cross-selling technique brings great benefits for different businesses, some of which we will introduce:

  • Improving the company’s long-term value
  • Extend selection between products and services
  • Ease and Flexibility in Customer Purchases
  • Customer Equity Improvement
  • Moderate growth of old and new customers
  • Increasing customer satisfaction
  • Reducing the price and improving the rate of return of capital (ROI) of products or services
  • Customer service improvements
  • Promoting innovation
  • Increase customer profit
  • Reduce Customer Loss Rate / Improve Customer Experience and Loyalty