What is Cross Selling? And How Can You Use It to Increase Revenue?

Principles of Online and Offline Marketing Unit 312 2019

If you’re looking for ways to increase your revenue, you’ve probably heard about the two major sales techniques for boosting your company’s bottom line. Cross-selling and upselling are both essential strategies that can help you maximize your profits and keep customers coming back. But what exactly do these terms mean? Let’s dig into the details of cross selling and upselling, and discuss how you can use them in your current role.

What is Cross-Selling?

Cross-selling is a marketing strategy that encourages customers to buy related products or services in addition to their original purchase. For example, if a customer buys an item from an online store, they may be presented with additional items that complement the product they just bought. By offering customers complementary products or services at the same time as their original purchase, businesses are able to increase their average order value (AOV) while also providing more value to their customers.

What is Upselling?

Upselling is similar to cross-selling in that it encourages customers to make additional purchases after making an initial purchase. However, unlike cross-selling which focuses on related items or services, upselling involves encouraging customers to upgrade their initial purchase with a premium version of the product or service they already bought. For instance, if a customer buys an economy class flight ticket from an airline website, they may be offered the chance to upgrade to business class for a higher price.

Identifying Opportunities for Cross Selling and Upselling

The key to successful cross-selling and upselling is being able to identify opportunities where these strategies will have the biggest impact on revenue. To do this effectively, it helps to look at customer data such as what products they typically purchase together or what services they tend to upgrade when given the option. Additionally, you should also consider offering incentives such as discounts or loyalty points when attempting either of these strategies—this will encourage customers who might otherwise not be interested in upgrading or adding more items/services onto their order.

Cross selling and upselling are both powerful sales techniques that can help businesses increase their average order value while providing additional value for customers in the form of related products/services or upgrades on existing purchases. By studying customer data and offering incentives like discounts or loyalty points when attempting either strategy, businesses can maximize their revenue potential while continuing to provide great service for their customers. Whether you're just starting out with cross selling and upselling or looking for ways to refine your current strategies, understanding these two important techniques is essential for any successful business owner!

Cross-selling is presenting the customer with opportunities to buy related products such as insurance for their mobile phone while upselling is presenting the customer with opportunities to buy an upgrade or greater quantity of the product I am already buying such as when a customer wants to buy a office package and they get the whole office suite not just the email side up the office suite.

Cross selling opportunities could be in the IT Department, would you like a VoIP system, how about some new compatible mobile phones with capabilities to connect to the same conference calling tech.

Upselling could be we notice you have opted for the 16GB model how about the 32GB storage model instead for this great deal price.

Here is an example of a mobile phone from the Apple store

The product is a mobile phone

Apple

https://www.apple.com/uk/shop/buy-mac/macbook-pro