Retaining a customer costs 5 times less than recruiting a new one . Now that you know this information, I ask you a question. In your Digital Marketing strategy, are you dedicating efforts to retain and retain your customers by offering them new products or services?
Because if not, you need to learn what is cross selling and up selling . These are two techniques that can help you sell more in your business and improve the customer experience with your brand. Sounds good right?
In this article I will explain in detail what the cross – sell and upsell , why and how have enormous potential from an entrepreneurial business to large enterprises can apply to improve their results to the end of the month.
ARTICLE INDEX
What is up selling?
What is cross selling or cross selling?
Differences between up selling and cross selling
Improve return on investment (ROI) and increase profitability
Improve customer satisfaction and loyalty
Increase Customer Lifetime Value
Examples of how to cross sell and up sell to sell more
Zara: Buy the entire look (cross selling)
Vertebrate: highest ticket (up selling)
Tips for Up Selling and Cross Selling
What is up selling?
Up Selling is a sales technique that consists of offering the customer or potential customer a higher price 俄罗斯电话号码列表 option with respect to the product or service that they have initially chosen in order to obtain greater profitability in that sale.
In other words, it is about suggesting a product or service that improves the initial purchase and entails an additional cost for the user. With this, you are helping to visualize the value that the customer will obtain when acquiring a higher cost item or service.
To do this, we can show the consumer other versions or models that can better meet their needs. In this way we will achieve:
Increase the average order value or average ticket (AOV).
Help our customers improve satisfaction with their purchase.
The key for the up selling technique to work is to be clear about the needs of your customers and align that additional sale based on them.
Think that it does not make sense that a person is looking at laptops of 500 euros and you offer him one of 5,000. However, that person might be interested in a € 800 laptop. This offer would be relevant to the client.
Let’s see the up selling applied with some examples to make it clear to you.
Imagine that you are a Community Manager and you sell a basic social media management service that a potential client is about to hire. At that point, you present a premium option that includes additional services . That would be up selling.
If we take it to the field of eCommerce we could put as an example a store that sells washing 警报消息 machines. Your potential customer has come to a product sheet for an economic model and, while considering the purchase, he sees a banner that offers him a superior model at a higher cost or, simply, a model that the store is interested in offering because it gives them more profitability.
You can also see up selling on the Apple page, a brand that plays this trick with great ingenuity. For example, when a potential customer is already committed to purchasing the product, you offer them a more expensive or expanded version of the service. Apple Says: Want to Buy a Mac? Perfect. What if instead of buying one with 8 GB of memory, large to 16 GB?
Remember: you can apply up selling both with those people who have already bought from you and who are already customers and with those who have not yet completed a purchase and, therefore, are in the process of becoming a customer.
The first assumption is the one that I apply in my business when a person buys my sales funnel course .
In this case, when the user has already completed the transaction and lands on the thank you page for his purchase, therefore, he is already a customer, I offer him an individual consultation with me for one hour to help him implement the course in a personalized way.
What is cross selling or cross selling?
Cross selling is a sales technique that consists of offering the customer related products or services that complement the one they have already bought or are about to buy . It is about satisfying additional complementary needs that are not covered with the original product or service.
This technique is used in order to:
In short, you are suggesting to the user products or services that they would have bought anyway by showing them at the right time.
Cross selling allows you to make profitable those customers who have already consumed a Front offer , that is, an initial offer with a lower price that allows you to attract users who do not know you yet to later present them a Back offer with other types of products and services. In such a way that, you expand the AOV and achieve a higher gain.
To carry out successful cross-sales, you must suggest those products or services that combine naturally and consistently with the product or service that the customer has come to look for in the first instance.
Cross-selling is applied in all types of sectors from fashion, motor, hospitality, catering, marketing or banking among many others. Has it ever happened to you that you have gone to your bank to open an account and have left there with it, but also with a VISA and new insurance?
Also in eCommerce, cross selling is used frequently in product sheets or during the payment process.
Have you ever entered Amazon to buy a specific product and ended up buying another item? This is also the result of cross selling. Amazon is the king of cross-selling.
In fact, according to Invespcro, cross-selling revenue contributes up to 35% of the US company’s total revenue .
“Usually bought together.”
“What other products do customers buy after seeing this product.”
All these sections that you constantly find on Amazon and in other eCommerce with clear calls to action towards complementary products are part of the cross selling technique.
Differences between up selling and cross selling
Often these two techniques tend to be confused. However, the differences between cross selling and up selling are very clear.
When you make an additional sale (up selling) you offer the user an improved or superior option of the original product or service, and when you apply cross selling (cross selling) you offer the user a complementary product to the one they came to look for.
I know everything is clearer with examples, so let’s get to it.
You are in the sandwich shop in your neighborhood and you are about to choose a menu of sandwich and regular-size soda. At the checkout, when making your selection, the clerk suggests if you want to change your 250 ml soda. to one of 500 ml. for just 1 euro more. This would be a classic additional sale or up selling .
Now imagine that the question thrown at you is: would you like to add some fries to your menu? This would be a cross sell.
Another assumption and this one I take it to my field.
Imagine that I want to sell my online course on Sales Funnels on Facebook & Instagram Ads to a Digital Marketing professional whose goal is to become an expert in Social Ads.
If I implement an up selling tactic, I would offer you my Online Traffic Expert Program (Trafficker Digital). It is about continuing to respond to the need of this professional with a higher cost product.
If I applied cross selling, I could offer you my online course Advanced Segmentation on Facebook & Instagram Ads as a related product that would help you complement the training you chose in the first place.
In practice, many companies tend to combine both techniques due to their multiple advantages not only for the business but also for the client, provided they are carried out properly.
Among the benefits of up selling and cross selling, stay with these:
Improve return on investment (ROI) and increase profitability
Attracting new customers is important, but we must never forget existing ones.
The probability of selling to an existing customer is between 60 and 70% while that of selling to a new customer is 5 to 20% .
Cross selling and up selling tactics allow you to generate profits faster because you sell to existing customers that do not incur acquisition costs. Thus, your ROI increases.
On the other hand, you can sell specific products or services that you are interested in taking out because they offer you a greater profit margin .
