To make a sale, you need to ask yourself a lot of questions. What is the customer looking for? How can I add value? What makes my product unique?
To answer all these questions, developing a sales strategy is an absolute must. This is both for the short term and the long term. For example, do you want to increase your sales? For this too, you can define a strategy and especially apply some techniques known within sales.
Upselling and cross selling are 2 examples of this. They are sales techniques that convince customers to buy a better or more extensive product. For you, this results in more sales, but often the customer is also more satisfied because they buy a more qualitative or comprehensive product (upselling) or immediately have everything they need instead of just a part (cross selling).
What exactly upselling and cross selling is, we explain further below!
What is upselling?
In upselling, customers are persuaded to buy a more expensive or comprehensive product than what they actually had in mind.
Example 1 : you want to buy a car, but are faced with all the options you can take with it. Gps, parking sensors, parking camera, leather seats, seat heating...
This is a typical example of upselling. As a customer, you are introduced to options you did not initially think about or even know existed. 1 thing is certain. The options create a more comprehensive and qualitative product that provides greater added value.
Example 2: you want to buy some books and enter a bookstore. More expensive books such as hardcovers or special editions are more likely to be displayed in the shop or given a place in the window. Bestsellers or books that have just come out are also placed at eye level so that your attention is more quickly drawn to these books.
Example 3 : You want to book a trip and have a choice between lodging, half-board and full-board. Booking full-board, for example, gives you more peace of mind and comfort. No worries about meals during the entire trip.
Online, you can recognise upselling very well by statements like "others also viewed" and "items similar to this". You get the suggestion to click through to another product. A product that is often more expensive and has more options.
What is cross-selling?
Cross-selling is a sales technique that involves trying to sell additional or related services to a customer as well. Again, the customer will spend more money at the end, but you offer a clear added value by meeting more needs or expectations.
Example 1: cross selling is something you come across tremendously often in the supermarket. For instance, products that you would eat/drink together are placed next to each other in a rack. All kinds of dip sauces like guacamole, hummus, pesto... are next to chips and dip sticks. During the Christmas period, go down the meat department to order gourmet or teppanyaki and while you can also buy a gourmet plate. Similarly in summer when you bring barbecue meat and you can also buy coals or even a barbecue.
Example 2: while booking a trip, you also get the option of renting a car or taking cancellation or travel insurance. Things that a traveller considers anyway, but that a customer might purchase later.
Example 3: you order a new smartphone and are suggested to also order headphones, charging cable and protective case. You need those items anyway so why not suggest it immediately as a company?
With cross selling, the customer is thus shown related products. Products they would often purchase anyway. By not introducing them, there is a chance that the customer won't know that you also offer this or that they will forget about it and purchase elsewhere.
Online, you can recognise cross selling very well by the phrase: "this product is often bought in combination with...".
Did you find the above blog post interesting and want to learn more about sales techniques? We would love to teach you the ropes!