Upselling and cross-selling are two customer-focused sales growth strategies that seek to enhance your shopping experience.
In this article, we will explore the differences between these two strategies and explain their advantages and disadvantages, if not applied correctly.
Cross-selling is a sales strategy that suggests buying additional products or services based on the purchase of a product. The image below shows an example of cross-selling on Worten Portugal’s page for the Samsung Galaxy A51 mobile phone.
To plan an effective and successful cross-selling strategy you must:
➔ Assess which related products/services are suitable;
➔ Identify which clients are suitable for cross-seeling;
➔ Understand the customer’s buying journey to choose products/services tailored to customer needs.
Customer acquisition is often more expensive than selling new products/services to existing customers. Therefore, many companies choose to use the upselling strategy that consists of encouraging customers to buy a more advanced version of the product/service than what the customer intended.
In the image below we present an example of upselling on the Worten Portugal page regarding the Samsung Galaxy A51 mobile phone, with a price of €199.97.
What are the benefits of upselling and cross-selling?
The main advantages of these two sales growth strategies are increased financial return and greater customer satisfaction. In the Business To Business (B2B) market, the following advantages are added:
➔ Increased customer lifetime value;
➔ Customizing the customer experience;
➔ Optimizes the value of each sale;
➔ Allows the customer to take advantage of a complete solution, increasing customer retention.
On the other hand, regarding cross-selling, if you don’t pay attention to the three topics we mentioned above, your strategy may not work. For example, if you recommend a product that has nothing to do with the product that the customers bought, it may drive them away.
Now that you know these sales acceleration strategies, it’s time to apply them to your business whenever possible. But don’t forget to keep these strategies in line with your marketing strategy at all times! Marketing and Sales always go hand in hand! 🤝