Upselling and cross-selling are two strategies that many businesses use to boost profits and get their share of the market. These two share similarities but have distinct differences that your company can benefit.
What is Upselling?
When a company upsells, they often use comparison charts to sell higher-end products to their clientele. An expert from United Call Center, a live call answering service company, cites that when you show callers or visitors that there are other better models or versions of the product they want to purchase, they are likely to be more satisfied with it. They also leave with a feeling of getting a good deal and a better fulfillment of their needs. Companies that upsell effectively can help a customer visualize the value they receive by choosing the higher-priced service or item instead.
Cross-selling is about pitching a product that meets complementary and additional needs unmet by the original item that a customer purchased. Most of the time, cross-selling directs customers to products they are likely to buy anyway. Companies that use this strategy effectively show complementary products at the right time, ensuring a sale.
What Makes the Two Similar?
In some ways, upselling and cross-selling are similar because both offer customers extra value compared to sticking with what they intended to buy in the first place. Some companies’ salespeople make the mistake of cataloging certain features of the products they want to upsell or cross-sell instead of creating value. To successfully use both strategies, a seller must learn how to build value for the goods or services they want to pitch. They want the customer to visualize why it’s important and beneficial for them to pay more.
Upselling is advantageous to a customer by providing him or her with higher quality products, one the other hand, cross-selling adds advantages by offering additional quality and complementary items. Regardless of the strategy you implement, focus on value instead of making the pitch, doing so improves conversion rates and doesn’t turn off callers or potential buyers.