Cross selling and up selling are not the same thing – and you need to have that clear in your head if you want to fully exploit your customers’ buying potential.
These are sales that are not planned, but that should not be put aside. After all, you want customers who are delighted with your brand, right?
It goes through an assertive sales strategy, always with care at each stage, to be able to develop both cross selling and up selling well with those who already consume your company.
But of course the seller cannot “push” anything to the customer. This needs to be natural. It must be the result of the value generated to the customer at all times.
There are triggers that can be used, of course. But doing it in a forced way will be a “shot in the foot”. And, let’s face it, it’s not worth it, right?
However, let’s not rush. You want to know the concept of up selling and cross selling, don’t you? We will discuss them in this article.
It is more than that. We will talk about how to take these strategies out of the paper and put them into practice and how technology is a fundamental ally in this mission.
Stay with us and discover great ways to increase your sales.
We will show you the main differences between cross selling and up selling techniques.
Cross selling and up selling: what are they and what are their differences?
Let’s break it down by topic to make it clearer what cross selling and up selling are. Check out:
What is cross selling?
This is a technique that encourages the customer to bring one or more products and/or services that complement the original purchase.
The goal is to think of products or services you have that can further enhance the customer’s experience with the brand. It exists to be of benefit to both parties – both the consumer and the company.
Want examples of how cross selling is applied?
It is quite common in ecommerce when a product is selected. You’ve certainly seen messages like: “People have also looked for” or “You’ll like it too”, and so on.
In physical stores this also occurs. If you’ve ever been to Subway, then you’ve heard the question: “double cheese for 1 dollar?”
And what is up selling?
The up sell, in turn, is designed to make the customer open their wallet and spend more money. Offering something more expensive than the original product or service which, of course, has a higher quality.
It can be used at times when there is a large inventory of some merchandise, or some service that is not being implemented regularly.
An example of an up sell?
When a seller suggests to the customer – who has a 32 GB smartphone in hand – to buy a 128 GB device.
In terms of service, instead of hiring an intermediate software plan, the sales professional suggests a more advanced one. This one will come with more features and also hours of support, for example.
Right! Understand. But what is the difference between the two?
By now you should have understood the difference between cross selling and up selling. But if that’s not clear, we’ll explain it a little better.
The first seeks to complement the customer’s original purchase – never replace it. The intention is, of course, to make the consumer spend more, but in a complementary way.
The up sell, on the other hand, seeks to replace what the person would acquire. Something similar, of the same type, but better, with more functionality or quality.
Different from each other, they have a similarity. They seek to increase the average ticket in sales and also the LTV within companies.
It’s a great way for sellers to increase their sales commissions, for example. If this, of course, is based on the amounts spent by customers.
Check out the benefits of applying cross sell and up sell with our tips.
4 tips for putting cross sell and up sell into practice
Cross selling and up selling strategies offer great benefits to companies, as mentioned above. It’s something that can often go unnoticed, but it’s up to the sales team to introduce their pitch into the commercial routine.
The sales control within companies is crucial to put in place some strategies. Even better, is to know which products are out of stock and adapt trading techniques so that it can have greater output.
And if done correctly, it will ensure the customer’s success and complete satisfaction with the brand. And when that happens, you will have an evangelizer in him.
It will begin to refer new customers, impacting your business’ customer acquisition cost. By the way, do you know what CAC is?
That said, we have separated 4 tips to put cross selling and up selling strategies into practice. Check out:
1 – Use language to your advantage
Words have a lot of power and using them in favor of sales techniques is an excellent way to make the customer spend more.
The speech, of course, will depend on the persona of your business, the profile of the company’s ideal customer.
But generally speaking, a few sentences can help you. Such as:
- “special discount”
- “I got you an unamicable offer”
- “Whoever bought it was also interested in (quoting the product)”.
Within this context, you can (and should) add a level of “urgency” to the way you communicate.
You’ve certainly seen phrases like “last units”, “out of stock” or “limited time offer”.
Adding urgency to the speech is a way of awakening the customer’s need to buy, both for up sell and for cross sell.
3 – Make payment easier
If you are going to offer the customer a better offer, then make payment easier. Especially if the so-called “cart abandonment” occurs in ecommerce.
Tell him that, if he chooses to complement the original purchase, or replace it with something better, he will be able to spread it more often.
Or, if you pay in cash, negotiate a discount – and communicate this making it clear that it is exclusive and for that moment only.
4 – Make the benefits clear
The customer needs to know what he is really buying in the cross sell and in the up sell.
If you want the customer to open their wallet, then make clear the benefits they will have. To expedite this communication, document what each product or service has as an advantage within your company s sales playbook.
Thus, the seller can more quickly expose the advantages, with no gap for the customer to give up on the up sell or cross sell.
5 – Create a positive context
Within the tip above, one of the most creative alternatives to show why the client is worth spending more is creating a storytelling.
Nothing too elaborate, but you can create a hero’s journey quickly within your speech. Create and make him imagine himself in a favorable context.
Let’s use the example commenting above, the smartphone purchase.
Tell the customer that he, with a cell phone with a larger memory, will always be able to record all the important moments he will experience. But go further and put this into a real situation.
You can say something like:
“Imagine you meet an artist you admire on the street and ask to take a picture with your cell phone. However, your 32GB smartphone has its memory full and you can’t register that moment.
You missed the opportunity of your life just for having a cell phone with a full memory. With a 128GB cell phone you’ll never have that worry and you’ll have a memory forever.”
Adapt to your company’s reality and make the customer see themselves in the context you create. Information can be assimilated more easily this way.
But remember: you cannot force anything on the consumer. He will already buy from you. It is important to understand this as an extra opportunity and not as something vital that needs to be done at all costs.
You want the company to always have a healthy customer relationship, right? So try to do this in a light, good-humored way, so that he is more willing to accept.
Technology is your great ally in sales.
Do you want the customer to buy more? So use technology to your advantage
Cross selling and up selling strategies work much better when technology is used to their advantage.
And for this to happen as effectively as possible, it’s important to have a sales system that has all customer interactions with the brand registered.
With a good CRM Online it is possible to have a record of what the customer has already done in relation to the brand. If he has ever purchased a product or service, what were they, when did it happen.
This can direct the seller’s speech so that this purchase can be repeated.
Even better: with product registration, it is possible to see what has been out of stock for the longest time and propose a complementary offer to the customer, for example. Everything quickly and easily.
With the steps of the sales funnel well configured, it will be possible to identify patterns: both among the customer and among the same profile of people.
From there, direct efforts so that you are always able to sell more and better and leverage the commercial results in the company,
So, how can we help you?
Enjoy and read two articles that will help you to have more assertive sales.
The first one has 30 customer service tips for you to apply every day.
The second one shows some sales script ready for you to hit goals more efficiently.