Here are some key points to keep in mind from this infographic…
1) Understand How Upselling and Cross-Selling Compliment One Another.
Upselling is the process where a person selling a product pushes the customer to get the better, and more expensive alternative instead. Once a customer is in and has committed to purchasing something, there is a greater chance that upselling can be used to push them towards a more expensive and profitable option.
Cross-selling on the other hand is the technique of getting the customer to purchase something else in relation to what they have just bought. If the person bought a new smart phone as an example, then upselling would try to convince them to buy a phone with better hardware while cross-selling would try to convince them to buy a matching case, headphones, and other accessories. Because both rely on the customer’s willingness to buy, they can often be used to compliment one another.
2) Know The Benefits of Upselling and Cross-Selling in Marketing.
One of the greatest benefits of upselling and cross-selling is that it manages to increase the life time value of the customer. Having committed more, the customer feels a greater need to stand behind their purchase and your product as a result. Another benefit includes increasing the average order value, or AoV of your customers. By having the average customer spend just a little more per purchase, you can make a serious profit.
Along with these revenue and profit benefits, upselling and cross-selling is an excellent way to increase your leads. As every purchase will contain a wealth of information regarding purchasing habits, your company will be able to use this information to create better products and marketing techniques into the future.
3) Use a Number of Techniques to Upsell and Cross-Sell Successfully.
A popular way to cross-sell and upsell is the add-on value. When purchasing a new laptop for example, the add-on sale can be better and extended range of warranty, improved customer support, protection plans, and even product training. These minor luxuries require little effort on your part and can result in a sizable amount of profit as a result.
As many gaming companies like Steam have shown, individuals are more likely to upsell when products are bundled together. So, if you are looking to sell a complete set of something instead of just a single part, then upselling can be used to show the value saved to the customer while cross-selling can be used to bring other products into the bundle.