What is the difference between upselling and cross-selling and how can you use both to your advantage?
What is the difference between upselling and cross-selling and how can you use both to your advantage?Are you looking to increase your commissions? There are many ways to go about increasing your sales, and regularly practicing upselling and cross-selling may be a good place to start. Sometimes upselling and cross-selling are used synonymously, because they are two completely different techniques.
Upselling is a sales technique that is used when a salesperson attempts to influence a customer to purchase an item which is more expensive than they may have originally requested or an item. To be clear, this is different from a bait and switch, because the original item is still available. Instead, it’s an upgrade to the original item. Imagine going to a jewelry store to purchase a new men’s watch. You tell the salesperson your budget, and after showing you a brand in your price point, they also show you a men’s watch at a significant higher cost. They know what item you are looking for, but they gauge your interest in spending more on a higher quality item.
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Cross-selling is slightly different than upselling. Cross-selling is the practice of attempting to sell an additional product or service to a customer. Using the example above, if while selling you a watch, the salesperson learns that it is also your wedding anniversary approaching, they may suggest looking at presents while in the store for your spouse. If you leave the store with an expensive designer watch and a new necklace for an anniversary gift, you’ve just been upsold and cross-sold.
Is it possible to use upselling and cross-selling together in one transaction?
Of course! As a salesperson, you should be practicing both techniques regularly. If you have an interested and engaged client, there is nothing wrong with attempting to practice both in one transaction.
One industry that regularly practices both upselling and cross-selling in their transactions is insurance industries. Think about the last time you renewed your car insurance policy. Did they suggest you increase any of your limits or add riders such as roadside assistance? If so, the insurance agent you were working with was upselling your policy.
After you finished discussing your car insurance needs, did the agent ask you if you own or rent a home? Were they wondering if you own a motorcycle or a boat? They may have suggested insurance policies for these items, and mentioned that if you bundle the policies, they can offer you an additional discount. This is an example of cross-selling. Both were accomplished in one transaction.
How can you work cross-selling and upselling into your sales routine?
You may even be currently practicing both upselling and cross-selling techniques but were unaware of it. The next time you meet with a client, try one – or both – out on the sale. If either are new to you, or you are trying both out for the first time, tread lightly. Always be respectful of your clients needs and never appear forceful or you risk losing the sale.
Before you practice either sales technique, you’ll need customers. Let Blitz Lead Manager help you with all of your customer relationship management needs. We can automate emails, process and assign new leads for you so that you’re better able to sell your client on your services or products.
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How does your industry handle upselling and cross selling? Are you able to practice both at the same time? Let us know in the comments.