Cross-selling and upselling are the most straightforward concepts in marketing. To do them properly, you will require awareness, correct timing, tactic, and empathy.
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- 3 minute read
Up-selling refers to encouraging a customer to buy a product that would make an individual’s purchase more expensive. This usually happens by providing a premium option, upgrade, or enhancement.
Most importantly, remember that up-selling doesn’t involve offering comparable items to an individual’s initial purchase. Moreover, the customer offers an upgrade or an enhanced premium version of the product. So, you can understand up-selling as ‘piling on’ an item rather than building around it.
What is Cross-selling?
Cross-selling means encouraging a customer to buy a product in relation to the primary product. Think of a case where a subscription to a marketing tool has been purchased by individuals. Here, cross-selling would come in handy. This is because it would motivate customers to purchase a CRM subscription.
Cross-selling could be an efficient tool to build extra revenue if your business offers a separate product that can complement a customer’s initial purchase.
Strategies of Up Selling and Cross Selling
Below are various strategies of up-selling and cross-selling:
- Understand your audience:
It is important to know your audience if you want to indulge in upselling and cross-selling. This understanding is not just for customers who are yet to buy a product but also those who have brought it. Gather demographic and psychographic customer information from primary and secondary data sources. Customer feedbacks are essential as it can be used to understand the goals of the customers and create personas.
- Build out customer journeys:
After understanding customers, it’s time to map out customer journeys. This will help in identifying how a customer will use the product. Eventually, some customers may reach the point in their journey where they clearly prefer the product and even suggest it to others. At that point in the customer journey, they become most excited to hear about cross-selling or upselling pitch plans.
It is important to have patience and not get carried away. You must wait till the customers reach that point of the customer journey. Otherwise, you will have a hard time trying to upsell or cross-sell.
- Consider problems and provide solutions that map to products:
Before attempting to sell to an existing customer, it is crucial to wait and review. You must ensure to align the product offering with the customer journey. This alignment will provide clear-cut ideas of possible challenges that consumers may be facing. Knowing this, you can cross-sell or upsell products that provide the possible solution.
- Indulge in active listening:
The active listening and reading skills must be significantly polished and honed for indulging in effective cross-selling or upselling. This will open the doors to identifying crucial signals that show whether your customers are ready or not to hear your offer.
Conclusion
Cross-selling and upselling are not the most straightforward concepts in marketing. To do them properly, you will require awareness, correct timing, tactic, and empathy. Mastering these concepts can mean the difference between success and failure. You can use PayU, Shopify, or Big Commerce to conduct payments related to cross-selling and upselling. With products like smart checkout, no-code solutions, omnichannel solutions, financial solutions, disburse payments, and PayU Vista on PayU, you can efficiently conduct upselling and cross-selling.
FAQs
What can be an example of upselling?
An example of upselling can be a housekeeping service upselling a customer who purchases a daily cleaning package, by offering a package with more sections, and cross-selling by also providing a mat deep cleaning service.
Which is better- cross-selling or Upselling?
There is no straightforward answer to which is better than the other. Upselling increases business revenue by promising a higher level comparable item. Cross-selling achieves the same by suggesting more items to purchase. The answer really depends on personal preference.
What is the significance of upselling?
Upselling leads to an increase in revenue and profit. It is particularly useful for sales-associated departments that have to satisfy particular quotas regularly. They can efficiently achieve their goals with proper upselling. Moreover, upselling can also enhance the customer experience.
What are some of the techniques of cross-selling?
Cross-selling is the sales tactic which entices individuals to purchase items that are comparable or complementary to what they initially intended. Cross-selling techniques are as follows:
Recommending comparable items
Offering discounts on comparable items
Bundling comparable items
What are some useful tips for upselling?
Some upselling tips are as follows:
Select a relevant product to upsell
Make use of product comparisons.
Provide a reward to encourage.
Totally avoid being pushy.
Win trust with reliable evidence.
Properly utilize urgency.
Offer free shipping.
Make use of reliable upselling platforms like PayU, Shopify, or Big Commerce.
Use products like smart checkout, no-code solutions, omnichannels solutions, financial solutions, disburse payments. All these products are available on PayU, a reliable payment partner.
