When a sales opportunity materializes, it is the triumph of a long and costly process. Marketing, sales, customer service, quality, etc. teams have been involved in it. For this reason, once the customer has purchased, it is time to apply strategies to continue taking advantage of their potential. For this, there is the cross-selling technique .
In this article we will learn what cross selling and up selling are , and how to do them successfully, according to the needs of each company.
Cross-selling and up-selling, definitions
To expand on the cross-selling technique , it is first necessary to explain up-selling , since it is a technique that is usually applied first, within the marketing strategy .
Both are methodologies that serve to take advantage of the full potential of an acquired client, and not concentrate all efforts on acquiring a new one. This is justified by the fact that acquiring a new client costs 5 times more than maintaining an existing one.
The goal of these techniques is to get the company's customers to make new, more expensive purchases more frequently. The secret is to identify the right moment and offer for each customer.
What is up-selling?
When we go out for fast food, for example a hamburger, it is normal for the person serving us to offer to 'upgrade' the order by a certain amount of money.
What this employee is doing is trying to make a bigger sale, since the sale of the product is assured.
Upselling is a marketing technique that consists of offering or motivating the customer to make the most expensive main purchase, in exchange for an improvement in the product or service.
Upselling should be motivated after the customer's needs and purchasing intentions are known. It is at this point that an improvement to the product is offered to better exploit its potential .
What is cross selling?
Going back to the fast food shopping example, cross-selling occurs when the person at the counter asks us if we would like to add a dessert to the menu.
This is a “complementary sale” or “cross-sale” offer, where the customer is encouraged to purchase something in conjunction with the main product.
Cross-selling is a marketing technique that offers customers an additional element to their original order. This will allow them to discover new products, have a better experience, and increase the company's income.
Cross-selling and up-selling example
If a customer has already purchased a subscription to a telephone line, he is offered a “Premium” option with free internet and calls. This is an up-selling motivation .
If, in addition to a premium subscription, you are offered a new telephone at no charge, this is a complementary offer, or cross-selling.
The main service that the customer was looking for was a telephone line, but not only was he encouraged to buy the most complete and expensive line, but he was also offered a complementary sale of a free cell phone.
A real example can be seen in Apple's online store. If a customer comes to the store with the need to purchase a MacBook Pro device, on the website, after selecting the product, they offer an upgrade by adding the operating system.
Cross-selling or complementary sales are then offered, encouraging the purchase of different products, but related to the main one. In this case, these could be AirPods, a smartwatch or a protective case for the computer.
How to cross-sell
You already know what cross-selling is and the difference between cross-selling and upselling. Now we will see how to do a cross-selling .
Cross-selling can be used to meet different objectives, which seek to take advantage of the purchasing potential of an acquired customer, and build loyalty with the company.
It is very important to define in advance how and when cross-selling will be offered. This is achieved by knowing the customer in depth and organizing the sales route.
Having the help and management of a Sales Software is crucial for the marketing and sales team. These tools allow you to organize each client's data, understand their journey, characteristics, needs and history.
Software such as Salesforce CRM , DataCRM or Zoho CRM have functions that allow you to track customers, to identify the exact moment to carry out cross selling and up selling.
Some of the opportunities to encourage cross-selling respond to the following objectives.
Cross selling to complement a sale
Companies do not usually market a single product or service. Their inventory is made up of different elements that can respond to complementary needs.
In this case, cross-selling can complement the main product. This moment should come after knowing in depth how the customer's journey has been.
Cross selling will be different if it is the first time the customer has purchased from the company, or if they have arrived because they have tried competing products.
By identifying behaviors, you can encourage the purchase of an item that complements the main item. For example, if the same customer has purchased two suits in the last few months, it is time to offer them the purchase of a tie and shoes.
Cross-selling to improve an experience
Cross-selling can also be an opportunity to offer a more enjoyable experience for the customer . For example, if a spa and massage service has been booked, a great upsell would be to include lunch or dinner, and a set of exfoliating creams.
Cross selling to help a buyer learn
Companies that sell software, or complex machines, often include advice or the sale of a course to help them learn the right thing. This type of cross-selling is ideal for customers who are buying an item or service for the first time.
Conclusions
Cross-selling and up-selling marketing strategies will vary depending on the objectives of each company. But there is no doubt that taking advantage of an existing customer base is always more profitable than going out to find new ones.
It is necessary to know the client in depth to know when and how to offer a cross-sell. Deciding the wrong moment or insisting too much can undermine the relationship with the client, therefore, each step must be previously thought out.
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