Increase your sales through using up-selling and cross-selling, with McKinsey & Company sharing that cross-selling can boost your sales by 20%, and your profits by 30%. But what is the best way to incorporate these techniques into your business for maximum growth? In this article, we will look at what up-selling and cross-selling are, the benefits they can bring you and the best way to implement these strategies into your business.
Up-selling is a sales technique that which a business will invite a customer to buy a more expensive product than they were originally going to get. Usually, the sales representative will point the customer in the direction of a product or service that is an upgrade from the original product. This leads to a boost in revenue, with Sumo sharing that on average, up-selling techniques will increase the revenue of a business by 10-30% on average. This technique should be used with existing customers when a relationship has already been established to increase the likelihood of this selling method being a success.
Cross-selling is a sales technique where a sales representative will attempt to sell customers a related or complimentary product along with their original product. Businesses use cross-selling techniques to try to boost revenue and add value to what they are offering their customers. Cross-selling to existing customers will have a higher success rate than new customers, as they will already have the incentive to purchase from you. Invesp shares that companies are 60% to 70% more likely to sell to an existing customer instead of a new customer.
Sky broadband has a smart up-selling technique with its customers, using subtle design elements to guide clients to more expensive packages. For example, when a customer is looking at a broadband package, Sky will show alternative packages that are higher in price and value. They will be able to see the difference in features and speed of the broadband, creating a desire for the more expensive valuable package. Furthermore, Sky will also create urgency with the more expansive valuable package by having small discounts for their returning customers to make the upgrade.
Apple is a company that uses great cross-selling techniques to boost its sales and revenue. For example, when you are checking out with an item like a MacBook, you will be Apple’s webpage will suggest different accessories that will be useful for your MacBook. This increases the chances of a consumer checking out with multiple products.
Discover the different tips you should consider for your cross-selling and up-selling techniques to increase revenue and maximise revenue.
If you have a good understanding of your customers, you will have a better chance of offering relevant complementary or upgraded products to your customers that will intrigue them and catch their interest. This will increase the chances of your up-selling or cross-selling techniques being successful. A great way to better understand your customers is to ask probing questions to them when you are interacting. This will give your business a great chance to find out more about your customers’ needs and requirements. Moreover, research into a customer will give your business a better understanding of customers. Great research techniques for this are:
Whether you are cross-selling or up-selling to your customer, make sure that you keep what you are offering them simple. You do not want to give them a complicated offer and confuse them when they are making a purchase with your business. This can result in your clients not being interested in what you are offering and could even make them less interested in their original purchase.
Cross-selling and up-selling techniques will have a greater chance of being successful with loyal customers due to a high level of trust already being established. However, customers can be made loyal with good up-selling and cross-selling techniques because of the high-value product or service you are offering them. Your sales representatives should make it a habit to follow up with existing customers to see if there is a cross-selling or up-selling opportunity.
When you give customers cross-selling or up-selling opportunities, you must always ensure that you focus on the added value they will get with this offer. For example, in an up-selling scenario, you should focus on the added benefits the upgraded product or service will provide them. In a cross-selling scenario, you should make the customer aware of how the complementary product will improve their overall experience. By focusing on the value of these things, your customers will be more likely to move forward with the offering.
By incorporating cross-selling and up-selling into your business, you will experience benefits such as:
An increase in sales – Customers may be purchasing multiple products at a time or a more valuable product or service increasing revenue
Increase customer satisfaction – Improve your brand image with more satisfied customers from higher value offerings.
Increase in customer loyalty – Customers will be more loyal to your business as they will get more value out of your offerings than competitors
Quickly move customers through the buyer journey – Customers will already be interested in making purchases from your business resulting in a faster buyer journey
Effectively time and plan your cross-selling and up-selling techniques with TEB to drive your revenue. TEB is a sales automation CRM software that will streamline your entire sales process, give you a better understanding of your customers and grow your business. With TEB, your business will get access to features such as:
At a time that suits you, book a demo where we will quickly show you how TEB will enhance your cross-selling and up-selling methods to Increase revenue and grow your business.
