Surely at least once you have fallen into the “Trap” of Upsell and Cross sell when making a purchase. You may not notice it, but it is really close and extremely effective in business. So what exactly is Upsell and Cross selling?
What is Upsell?
Upsell Also known as upselling, is a form of upselling. In this form, the seller will persuade customers to buy products/services that suit their needs, but at a higher price than the price of the product the customer intends to buy, in order to increase sales revenue.
Upsell is commonly used in industries: Selling technology products, software (eg. Call Center), Mobile applications,…
For example: You want to buy a computer, then want to buy some more devices to increase the performance of the processor. At this time, the seller will use the Upsell technique to direct you to buy a product in a higher segment, of course, that product is more expensive. Basically, the seller is wanting you to spend more money on the same type of product but in a different segment, instead of buying supporting devices.
What is cross selling?
Cross selling Also known as cross-selling. In this form, the seller will persuade customers to buy additional related products, or products that can support the main product that the customer has just chosen to buy to increase product performance.
Cross selling is commonly used in the following industries: Retail of computers, phones, household goods, etc.
For example: When you buy a computer, the staff will immediately suggest you products to use with it to increase convenience. Such as USB, printer, etc. The purpose is to make you spend more money, and the seller will sell more products.
Benefits of Upsell and Cross-Selling.
The common benefit of these two forms is to increase sales revenue. But it doesn’t stop there, upselling and cross-selling also help customers optimize their choices, helping them find more suitable and convenient products during the process of using the product. Isn’t that great? You can sell products and please customers at the same time.
In addition, these two forms also have the following benefits.
For Upsell:
- Increase your chances of selling premium products (Products that are harder to sell than low-end products).
- Combine with promotional programs to stimulate demand.
For Cross selling:
- Increase the uptake of products/services that are difficult to sell individually: Customers are more likely to spend money if they see good connections and support between products.
- Combine with promotional programs to stimulate demand.
- Create diversity in the business's product ecosystem in the eyes of customers.
See more useful:
When should these two forms be used?
The answer is anytime, of course, provided that the business's product/service system allows it. But there is one point worth noting based on a Research by Predictive Intent that: Upsell is 20 times more effective than Cross selling (Of course, this is just a general reference number, there are many types of businesses that are more suitable for Cross-Selling).
Usually these two techniques are used in this order:
Build effective Upsell & Cross-selling plans.
To effectively execute upselling and cross-selling, it requires a detailed plan to follow, as well as valuable research on customer behavior. Here are the steps to take.
1. Build a suitable product system.
Upsell and Cross-sale only happen when you have a deep and wide enough product ecosystem.
- Deep: Products in different segments, with upgrades.
- Wide: Products that are linked, complementary, or equivalent.
Once you have a relatively suitable product system, list which products are specialized for UpSell and which products are used for Cross-Selling. From there, have appropriate product pricing strategies.
2. Explore Customer Insights.
You must really understand your customers, do they need to buy upgraded or supplementary products? Based on database or market research. Based on the interests, behavior and needs of customers to choose the target products that you think will be suitable for you.
3. Build customer journey.
Following step 2, map out the customer journey to understand how they will use the product. From there, insert the products you want to upsell or cross-sell accordingly. How these products, when combined, will create an enjoyable experience for them. Help customers feel more love for the business. When you do a good job of building the customer journey, you will see them very excited when you introduce your upsell or cross-sell offer.
We have a detailed tutorial here: Guide to building a customer journey map.
4. Build a discount/promotion price for the product.
To achieve the highest efficiency, offering a better price than the listed price when customers choose to buy a combo or upgrade package will help businesses average increase 76% your sales opportunity.
5. Measurement and evaluation.
Build an effective measurement plan through revenue, sales, product profits and customer feedback-based assessments to make more optimal adjustments to Upsell & Cross-selling campaigns.
Notes when implementing Upsell and Cross-selling
Don’t just want to increase revenue without paying attention to the quality of the products/services your business provides. Give customers value that is commensurate with what they receive before thinking about your profits.
Don't Up-sell too high.
Don’t rush to offer a product that is much more expensive than the product the customer wants to buy, they will feel like it’s a “waste of money”. Instead, offer customers prices from slightly higher to much higher for them to choose from. On average, customers will easily accept at this level. increased from 10 – 25% value.
Sell related products.
Cross-sell products that customers will definitely use while using the main product. No one cross-sells a washing machine when a customer is buying a laptop!
Convey many benefits to customers.
This must come from the real use of the product, try to clarify the use and connect the products together based on persuasion skills and understanding of what you are selling, so that you can highlight the importance of: Why should customers pay for product B instead of product A? Why should customers buy product B together with product C?
Always be honest.
In fact, many salespeople, especially new ones, often try to sell as many products as possible, regardless of deceiving customers (for customers who do not understand the product very well). This will later cause negative effects, especially serious for the reputation of the business. Sell according to the role and quality of the product, in the long run, customers will prioritize your store more thanks to Upsell and Cross-selling techniques.
Apply these techniques today to dramatically increase your sales, or join the In-house training course on advanced sales techniques for business here!
