Cross-selling, down-selling, and upselling are sales techniques that businesses use strategically for growing your sales/ profits as well as take your business to another level. All the big industry names, Tesla, Amazon, Apple, and so on use these sales techniques to assist buyers to purchase the products they need. This in turn increases their sales. Therefore, if you’re selling any service or product, you need these techniques for growing your sales.
What is Upselling?
Upselling is a technique that helps businesses sell more expensive products to customers than they would ordinarily buy. For instance, if a client buys a basic product, the sales rep can offer them the advanced model of the same product or its most expensive product. Click here to see how it is done.
This method is effective when you take out time to educate clients about your upgraded offer. You can also show them the differences between both models and what they could be missing from not buying the product. Additionally, show them how the product can assist them in achieving their goals.
The best time to upsell is when a client is on the verge of purchasing or when you’ve got an upgraded or advanced product. However, you can utilize the technique before, during, and after purchase.
Some Upselling Examples
- When purchasing a phone, the company offers you an improved model.
- When ordering meals at a restaurant and you’re allowed to include dessert.
- When paying for software for just you and you are offered a family account at a price that is a little below the premium version.
When upselling, try not to confuse the buyer by offering multiple products at once. Do not display the whole store to visitors who have already checked your store and want to make purchases.
Additionally, ensure you choose your offers wisely. They should be relevant, not too costly. The rule of thumb is to present items that are 25-35 percent more expensive.
What is Down-Selling?
This is the reverse of upselling. It involves offering cheaper alternatives to customers who lose interest in a product, probably due to its price. When you downsell, it increases your chances of converting visitors to buyers.
You should utilize this sales tactic when a potential customer is about to walk away without purchasing anything. Or when there is a lower version of that product in your store.
- Free shipping
- Making a one-time offer for a product at a reduced price
- Offering a discount to a visitor who is about leaving the store
- Offering a less expensive product
Some marketers believe that this technique reduces profit, but this isn’t correct. Instead, you are allowing the customers to have a taste of the product. If they like it, they are more likely to purchase it again. You’re not losing money; rather, you’re gaining an already converted high-quality lead.
However, you must be careful when down selling. Do not display the offer when customers are still checking out your products. Wait until they are about to leave. Even digital marketers use the same strategy. They use landing pages known as exit intent when you are about exiting the webpage.
Furthermore, avoid offering heavy discounts on your offer. This will hurt sales later as well as affect the brand. You are indirectly undervaluing your product if you train your customers to look forward to heavy discounts before they buy. It is better to offer a modest discount on their next purchase. When you offer discounts on primary products, it is no longer down selling.
What is Cross-Selling?
This refers to offering products that are related to what your customers already bought. For instance, if a customer purchases a smartphone, you can sell a phone case or air pods to them. This method is quite different from the other 2 methods we discussed above. You can check out this link to know the products that go together in cross selling.
In down-selling and upselling, you are offering low-end or high-end models of a product that customers indicated an interest in. Note that in both methods, no one has purchased anything; you’re trying to sell to customers.
In cross selling, the customers have already bought products and then you’re suggesting other products and/or services to them. The suggested products may even have mouth-watering price tags that the customers can benefit from. Ideally, you introduce this offer immediately after purchase.
Examples of Cross Selling
- Offering items that are usually bought together
- Offering an extended warranty
- Bundle package
- Complimentary products
Advantages of Upselling, Down Selling, and Cross Selling
Without a doubt, upselling is profitable. It enables you to sell an advanced model instead of the basic model. This way, you gain more and your customers are happy to buy again.
You also gain with down selling. Here, the customer wasn’t interested in the product and was heading for the exit. You showed up, offered them the lower version, and they fell for the bait. Instead of nothing, you got something. The profit may be lower but you sold them a brand name. The customer will return if they are happy with the product.
Cross selling is very beneficial as you gain more. The customer has already bought a product, and then you sell them a complementary product, one that they will definitely go alongside what they bought. They can’t say no except they don’t have cash. Most times, customers end up buying more than the actual product they came to purchase.
Whether you are upselling, down selling, or cross selling, your profit lies in the number of repeat sales you record. Beside growing your sales, the techniques also increase customer loyalty and brand recognition. However, you must avoid overdoing it or using gimmicks.
The products you offer should be connected to the one the customer wanted to buy. Suggesting a completely different product to an already pissed customer will make them angrier. Hence, your offers must be valuable to the customer. You can visit this website to get tips for optimizing your sales funnel.
The techniques discussed above are profitable to both sellers and buyers. The buyers get value for the money they spend while sellers make profits. Additionally, it helps buyers to know about the other items in your store and increases your chances of having a repeat customer.