Have you ever thought what importance Upselling and Cross-selling hold for any business type? And do you know what exactly upselling and cross-selling is?
If you don’t then you really need to know what importance upselling and cross-selling holds for the business growth. The study and statistics have proven that upselling and cross-selling can drive efficient and long-term success for all lines of business.
The best company to list that leverages upselling in the most authentic and accurate approach is Amazon. Stats have proven that Amazon earns half of its revenue directly by using upselling strategy.
So, let’s quantify the difference and pros of using upselling and cross-selling for better conversion rates.
What is Cross-selling?
Cross-selling is the technique of selling an additional product or service to the existing customer at the time of shopping. Cross-selling is used to gain more revenue by showing products related (variable product) to the purchased product (parent product) to the current customers.
But do you know?
Risk is always involved in cross-selling as it can disrupt the relationship with the existing customers. So, leverage cross-selling but, don’t become too offensive. Remember you have to retain your customer back to your store to make a more profitable sale.
For that reason, it is important to ensure that the additional product or service being sold to the customer helps them in making their life easier.
What is Upselling?
Upselling is a sales technique where a seller offers the customers to purchase a more expensive product, upgrades or other add-ons, in an attempt to make a more profitable sale.
In practice, large businesses usually combine cross-selling and up-selling techniques to increase revenue and to increase customer satisfaction.
Ways To Use Upsell And Cross-sell Strategies
If you want to succeed in your business then you have to abide upsell and cross-sell strategies. Some of the upselling and cross-selling tactics are listed below to help you in elevating results for your business.
1. Nurture Your Customers By Offering A Discount
Try to nurture your customers by providing them special offers in the form of coupons or offer them a three-month free service if they purchase any digital product from your store.
But, before making any offer find out the ROI rate of the offer. Don’t make too much of discount the numbers should make some sense. Then you have to wait for the responses and try to figure out the customer field of interest.
2. Pick Your Loyal Customers’
Customers who are making purchase regularly from you are your loyal customers, whom you should be upselling or cross-selling. As they’d good experience of your brand in most of the cases, your campaign would convert. Also, for the word of mouth marketing, ask them to provide feedback.
Use the feedback to decide if your campaign is successful or failure. Follow the same pattern to target your new customers.
3. Start To Write A Blog Post On A Topic
You can start writing a blog so, that your customers can easily relate to the topics like upselling and cross-selling. If I will get to know what is upsell and cross-sell from the blog then I will be more likely to implement it. Customers will be more engaged with you and your services by reading the blog.
4. Perform Quarterly Business Reviews
The reason why they’re so crucial for the profitability of your business is that they offer the perfect opportunity to cross-sell and upsell the current customer. Cross-selling and upselling is all about understanding the customer needs. And this can’t be done without getting proper reviews from customers.
5. Tell Them Why They Need It
Tell them they need these strategies to increase the sale and revenue for their business. When you directly tell your customers what they need, you stand a higher chance of closing the upsell or cross-sell. You can tell your customers about the tactics by writing blogs or by using email marketing.
Benefits Of Cross-selling And Upselling For Business Growth
- Increases conversion rates
- Offers convenience and flexibility
- Balances the relationship between new and existing customers
- Generates lead and convert them into loyal customers
- Improves customer service
- Promotes innovation
- Easy to sell an unwanted and undesired product
- Discourages churn and improves customer loyalty and experience
What Are The Disadvantages Of Using Cross-selling And Upselling Strategy?
- It always involves one element of risk which is, it can disrupt the relationship with the existing customers.
- The customer might not be interested in the offers or may feel that you are compelling them to make the purchase.
- It offers a more expensive product or higher quality product of the current product or service.
- Convincing the customers that a higher quality product is more valuable than a low priced product is not easy.
Which Will Give You More Revenue Cross-selling Or Upselling?
You all must be in a dilemma whether you should use cross-sell for presenting related and complementary products? or you should upsell to show more expensive but similar products. And what is the right time to use this strategy? According to research from Predictive Intent, upselling performs 20 times better than cross-selling.
Over To You!
Upselling and cross-selling both are beneficial to make the business grow and glow. So don’t miss out on the opportunity to cross-sell or upsell your current customers once they have completed their shopping on your website.
These strategies can be proven as one of the easiest ways to get back sales and revenue for your business. This blog post is crafted to get a clear view of what is cross-sell and upsell and how it can help you to grow your business.
Use WooCommerce One Click Upsell Funnel Pro if you wish to implement upselling for your eCommerce business. It contains all the optimistic points that a business may require to reach heights.