Smart Selling Advices (Up-selling, Cross-selling)

Up-selling and cross-selling are two techniques that you can easily implement into your business and if used effectively, they can make a big difference to your bottom line. Up-selling and cross-selling allow you to generate additional sales revenue by encouraging your existing customer base to purchase more or to make more frequent purchases.


Up-selling

An up-sell occurs where a customer is ready to order a product, or has already made a purchase from you, when you immediately offer an upgrade or addition to the deal. (e.g. in fast food restaurants, where the customer makes an order and the cashier asks "would you like to upsize that meal for just sixty cents extra?" In many cases, the customer says yes because they feel that they are getting a better deal, even though they are paying more).

The same principle can be applied to almost any selling situation, including when you are selling business-to-business. The crucial feature of an effective up-sell is being able to offer the customer some incentive to buy the upgrade now as opposed to later or not at all. There should be either a discount for purchasing the upgrade or a significant benefit to be gained by purchasing the upgraded product or service. Attention! Avoid exercising pressure in selling an upgrade! Otherwise, you'll risk losing the sale altogether.

Cross-selling

Cross-selling is a strategy that businesses can use to encourage existing customers to purchase additional or complimentary products from your range. This can prove to be particularly effective in business-to-business selling where the buyer and seller relationship is well established. Cross-selling doubles the return that you generate from the customer. Consider the potential of being able to cross-sell to all of your customers.

When used effectively, up-selling and cross-selling provide benefits to both the vendor and the customer. The key is to ensure that your upgrades or complimentary sales deliver on what they promise and add value to the initial purchase.

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