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How to distinguish an upsell vs a cross-sell

SixEleven

Upselling and cross-selling are the two common strategies used to grow a business. It is utilized not just to maximize their profit. They also use these to increase brand awareness, increase their customer lifetime value (CLV), and heighten brand loyalty.

It is easy to distinguish the difference between the two since they have a very different approach. 

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Definition of an upsell

An upsell happens when a salesperson encourages a customer to buy a more expensive product or additional service to add its value. Usually, the salesperson discusses a comparison between the customer’s current purchase and a higher-end item, all of which can fulfill their needs better. 

Attracting new customers is five to 25 times more expensive than retaining existing ones. According to studies, you are 60 to 70 percent more likely to sell to existing customers while it’s only five to 20% to new ones. This strategy is more applicable to existing customers for retention. 

For instance, a customer looks for a dining table. The salesperson will then do an upsell by offering a complete dining set or a table made from higher-end materials. 

Definition of a cross-sell

On the other hand, a cross-sell occurs when a salesperson offers a complementary or supplementary product to a customer’s current purchase. Usually, the supplementary item may have the same or higher value than the purchase. 

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This can be more suitable for new customers, since an upsell may intimidate them. But, existing customers also experience this. This strategy is also common to many industries, especially financial institutions and eCommerce sites.

Definition of an upsell

For instance, when a customer adds a product to their cart, suggestions of related items will automatically appear just below their items. In banks, tellers usually offer a credit card to both new and existing customers who open a deposit account. 

Using the two strategies in increasing sales

No matter what industry you are in, you have to grab this opportunity to increase your profit and grow your business. Here are the following steps you can do to spot an opportunity for upselling and cross-selling.

Get to know your customers

The best way to give your customers the best service is to get to know them. Through cold calling, you can get to know them better. This includes their interests, buying patterns, and how to get them to say ‘yes’ to a sales offer.

Build out their interests in a product

Trace a map of how they can use a specific product you’re offering and how it can help their work easier. When they get interested in this concept, there will be a chance that they will also share this and your product as a form of direct referral.

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Using the two strategies in increasing sales

Jot down possible problems and solutions for an item

As the seller, you should be proactive in taking down the possible problems they will encounter when using the product and how they can fix these. A simple troubleshooting FAQ can help in this situation.

Listen to your customers

In the end, it’s their choice whether they will take your offer or not. Train yourself to listen to what they really want and need. Most importantly, accept any rejections you will get in the process.

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AboutSixEleven
SixEleven is the first Davao-Based solution-oriented contact center designed to provide quality services in Sales, Marketing and Customer Support in the Philippines.
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