Up-selling and cross-selling how to boost your business
Up-selling and cross-selling: how to boost your business ?
To increase its turnover, a company can use two sales techniques: up-selling and cross-selling. What exactly are these marketing levers? ? What is the interest of implementing them for your company? ? Answers !
What is the difference between up-selling and cross-selling ?
Up-selling and cross-selling are two commercial techniques whose objective is to increase the turnover of a company by increasing the average basket of customers. However, the principle is different. Up-selling consists in inciting a customer to buy a similar product, but more expensive than the one he was planning to buy initially.
This sales technique therefore leads to an increase in quality.
To implement an up-selling strategy, it is wise to invest in a newsletter software. Newsletter support is an excellent way to reach customers and maintain the relationship with them. Not only can you use it to provide them with advice, but also to keep them up to date with your news and to introduce them to products that suit them and belong to a higher range.
Cross-selling is a sales technique that involves directing a customer to additional products based on the one they want to buy. It is also called cross-selling or up-selling. It is necessary to identify the needs and expectations of the customer in order to propose an adapted offer.
The use of a free CRM is one of the possible solutions to refine your knowledge.
Examples of’up-selling and cross-selling
It is important to illustrate how theup-selling and cross-selling with examples to better understand it. Let’s say a customer walks into a TV store to buy a 42-inch model. The salesperson then offers a 50-inch television set (more expensive) by highlighting the advantages of having a larger screen.
It is called up-selling, because it aims to move upmarket. Another example, when a waiter brings the menu to customers, he can offer them the superior catering formula by emphasizing that it gives access to luxury products and a bottle of wine. In the e-commerce field, this sales technique is often translated on the product sheets by the presence of a module indicating that the customers who consulted such an article also looked at another reference.
For cross-selling, you can use the example of buying a pair of shoes. In this case, the salesperson will also suggest to the customer to buy laces, soles or a shoe care product. It is about generating an additional sale by suggesting items that the consumer might need.
In the e-commerce field, this sales technique is most of the time materialized on the product sheets by the presence of a module indicating that the customers who bought such a product also bought such an item.
Why implement these marketing techniques?’up-selling and cross-selling ?
By using the techniques ofup-selling and cross-selling, you can :
- Get consumers to see your offer;
- Increase your conversion rate;
- Increase your sales volume;
- Improve customer satisfaction.
These sales techniques can be considered to complete an inbound marketing strategy. The result is a considerable increase in your turnover. A study shows that up-selling and cross-selling are more effective with existing customers. Indeed, there is a 60-70% probability that they will buy the products suggested to them. For new customers, this figure is between 5 and 20%.
To take full advantage of up-selling and cross-selling, remember to observe several rules. First of all, avoid suggesting more than 4 products to a customer at the risk of confusing them. Focus on relevance over numbers.
Only offer products that are related to the one they want to buy.
Also, make your customers’ lives easier by suggesting a combination of complementary products. In this way, you will improve their buying experience and increase their satisfaction. Not only is a satisfied customer likely to buy again, but he is also more likely to spend more.
Finally, explain to the customer why he should buy the product from a higher range or the additional items you offer him. To do so, you can invoke an emotional or logical reason.