In this article you will know what is upselling and cross selling and what is its importance.
More and more companies are entering the online market in order to expand their market. And of course, the main objective is to increase your sales.
Companies like Amazon, founded by Jeff Bezos, continually apply 2 strategies to incentivize their customers to spend even more money than they originally planned to spend.
In addition, currently smaller companies are using the same 2 strategies from their online stores; not just to capture a sale, but to get much more from a single customer.
This is where we start talking about what is upselling and Cross Selling. If these terms are alien to your marketing proposal, here we tell you what they are.
What is Upselling?
It is when the seller encourages the customer to spend a little more; recommending a higher-priced alternative to the product he is currently considering buying.
What is Cross-Selling.
It is when you recommend to your client to buy a product that complements the existing purchase; but it is from a different category or from a different seller.
How to use upselling and cross selling.
As you already saw, something else must be added in the final purchase. Here are some alternatives.
Protection plan for your products.
For example, when you buy a television, computer and even a mobile device; you are advised to purchase it with a extended warranty plan or an insurance that protects it against theft and/or external damages.
Technical support subscription.
It is assistance that you are offering to buyers who have technical problems with their electronic devices. This support team is made up of individuals familiar with the product, so will have a solution to any inconvenience.
Take into account to offer the client precise information on how to reach said support, and what are the means by which he could receive it. For example phone, email, or a live chat interface.
Training on the use of the product.
You can, for example, indicate to the client a web access in which they can access tutorials on the use of the product.
Grouping complementary products.
As I told you before, this refers to different products that are related but that are part of different categories; and that can be acquired in the same purchase.
Generally, when purchased in groups, they offer a discount, which gives added value to buy them together.
Now that you know what alternatives to offer, I would like to tell you about some techniques to make your upselling and cross selling more effective. But first I would like to ask you a favor. Simply vote from 1 to 5 to see how you’ve found this article so far.
Let’s continue…
Techniques that allow you to get the best of Upselling and Cross Selling.
It offers the alternative of buying separately or as a group.
A study from Harvard University revealed that items offered through bundles make customers more likely to buy. As long as the products can also be obtained separately.
If the only purchase option of the client is grouped, it will make your company’s income 20% less. So the best option is to offer both.
Offer more expensive products (Upselling)
Likewise, a study on the purchase intention of customers in electronic commerce revealed that when presenting products (options) slightly more expensive than the initial idea, sales for the month are immediately boosted by 4% more. And 20 times more than the standard products listed in the “recommended” section.
It sounds a bit paradoxical that sales can be increased by recommending more expensive options.
However, remember that we are talking about slightly more expensivein which said customers were not very sure about what they wanted at the time of purchase.
It offers “less good” options.
On the other hand, it is recommended to offer your potential customers a “less good option” than the obvious one; so they can choose the one they initially have in their head.
Giving them too many options can confuse and perplex them with so many possibilities, leading to no purchase at all.
Offer complementary products at the end.
Finally, at checkout, offer the consumer complementary products; This can increase your sales by up to 3%.
Conclusion.
To conclude, keep in mind that today’s customers know very well to perceive when you are trying to get more out of their wallet.
Your Upselling and cross selling should be focused on including added value to your purchases and helping the customer get exactly what they want.
The purpose of your business will be to make the customer feel good about their purchases, that means offering them personalized experiences, relevant recommendations, and products that are really worth spending a little more on.
That way the customer will be more satisfied and that will translate into higher profits for you.
And remember, if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
