Marketing Tips

The best upselling and cross-selling tactics to boost sales in ecommerce

Upselling and Cross-selling: The most powerful sales technique retailers don't want you to know forever. Uncover the methods to utilize it profitably.


While businesses invest a higher percentage of their resources into acquiring more leads through different sales techniques, they quickly forget about their existing customers. But most times, the most incredible opportunities are those that you have already created. For a fact, the revenue potential per customer does not cease after their first purchase. There's a lot of room for more sales after the initial transaction. To this effect, upselling and cross-selling techniques can help e-commerce owners take advantage of these benefits.

Using your time wisely to run effective marketing campaigns to re-engage past consumers is typically the best way to increase brand loyalty amongst existing customers. While it may seem illogical to reinvest in the same customers, implementing paid upselling/cross-selling campaigns can raise each customer's average order value and lifetime value, thereby boosting revenue.

As an e-commerce store owner, do you want to know how to sell additional products to pending buyers before the checkout process? If you nod yes, then worry no more. In this comprehensive article, you will learn the differences, advantages, and proven techniques to cross-sell and upsell your product or service to increase the conversion rate of every customer.

What Is Upselling and Cross-selling In Marketing?

What Is Upselling and Cross-selling

What is Upselling in Marketing?

Upselling is an advanced marketing and sales technique usually deployed by retailers to make customers purchase a premium or upgraded version of the service/product they have agreed to buy. When you upsell, you don't provide additional products to supplement your customer's original buy -you often propose more high-end; yet expensive product bundles, services, e.t.c.

Upselling is prevalent, particularly on the Internet. You've probably seen comparative advertisements or charts on product sites when buying online. They show you the exact items you're looking for but of a higher quality. Customers benefit from the upselling strategy since it allows them to spend a little more and get a higher quality product. It's a win-win situation for both parties.

What Is Cross-selling In Marketing? 

Cross-selling is an efficient sales technique deployed by online store retailers to encourage customers to buy something else in addition to the primary offering. In e-commerce, cross-selling is frequently employed to offer additional items, mainly found on intermediate pages and during the final checkout process.

Ordinarily, salespeople frequently recommend things that a customer would purchase otherwise. They intelligently offer it at the appropriate time and location. Cross-selling can be a fantastic way to generate extra cash if your firm provides a different product or service that complements or enhances the customer's initial purchase preferences.

What is the difference between upselling and Cross-selling?

  • Upselling uses comparative charts to promote higher-end products to customers, whereas cross-selling looks for alternatives that fill additional, supplementary requirements that the initial item doesn't.
  • Upselling increases income by guaranteeing a premium product, and cross-selling also does this by recommending other products to purchase.
  • Upselling caters to a customer's intent to buy something, whereas cross-selling alerts consumers to things they were unaware you offered. 
  • Upselling is an upgrade to the current purchase, while cross-selling is the purchase of an additional item.

Why are Upselling and Cross-selling important?

When done correctly, cross-selling and upselling will benefit both the business and the customer, raising income without the recurrent costs of many advertising channels.

Both tactics are pretty effective in generating repeat purchases, retaining existing customers, and increasing income.

What Are The Main Similarities Between Upselling and Cross-selling?

Upselling and Cross-selling are similar in that they both aim to provide more value to customers rather than restricting them to previously purchased items. The business goal in both instances is to boost the average order value per user by informing them about other product ranges they might not know of while shopping.

What Are The Examples of Upselling and Cross-selling?

Examples of Upselling and Cross-selling

Example 1: Upselling a Pizza

Let's assume you are trying to upsell a consumer on a pizza. Ideally, you won't push alternative pastries to give them a more balanced meal — you would intelligently make them buy a more expensive medium-sized pizza. Also, you can try to persuade the buyer to add an extra grilled chicken at an additional cost or — inform them about a high-quality french pizza to select for a modest fee. By so doing, you would enhance the initial pastry the consumer wants to buy and upsell the buyer on ways to enrich it.

Example 2: Upselling a Service

Oracle Limited offers three tiers (plans) of service, each product tier having unique features that grow in complexity. Now, a company representative is negotiating with a small business owner willing to purchase the lowest-priced amongst the three service plans. If the salesperson intends to upsell the client, they will point out the unique features that the top-plan has that the lower-tier plan doesn't have.

Let's assume the customer business is expanding to the level where accurate prediction will become increasingly important in the coming months. However, the lowest-tier plan does not have the mid-tier predicting features. Due to these facts, the salesperson can try to upsell the customer by emphasizing how switching to the middle-tier plan will guarantee that the company will make effective and accurate predictions as it grows.

Example 3: Cross-selling a Sandwich

upselling and cross-selling examples

Assume you work for a fast-food chain. A customer enters your store and orders a sandwich. If you wish to cross-sell the buyer, you will offer extra goods to make a far more balanced dinner. For example, you could inquire whether they would want yogurt or chilled Coca-Cola. Through this means, you won't be upgrading the sandwich itself in this context; instead, you will market around that first purchase with complementing goods.

Example 4: Cross-selling a Software Product

Linux Incorporation sells three product plans: attendance scheduling, coursework planning, and examination reporting plan. As a sales personnel, you have made contact with an institution interested in purchasing your examination reporting software. Now, If you wish to cross-sell the institution, try to show them the two other product plans your company offers and explain how the two other product plans will enhance the academic management system of the college.

In this case, you will not be marketing the University with an improved software package they already own; instead, you'd be offering them special items that can work together with the existing plan they intend to buy to solve their problems.

What Are The Advantages of Upselling and Cross-selling?

The goal of cross-selling and upselling is to increase a merchant's profitability. However, it's not just about the dollars; it's also about increasing brand loyalty amongst consumers by delivering actual value to them. The advantages of this sales technique are:

  1. It Increases Revenue

A good upsell and cross-sell strategy can help you increase sales and profitability. By making a customer upgrade to a higher plan of a product offering, a business will boost its overall profit margins

  1. It Maximizes The Value of Every Sale

During the customer journey in this fast-changing retail space, providing familiar products (when Cross-selling) and high-end premium upgrades (when upselling) to customers will increase the lifetime value of a user in the long run and increase the average order value in the short term.

  1. It Enhances The Customer Experience

Customers are eager to interact with companies that can provide them with a helpful product or service offerings. For instance, a support chat feature goes a long way in enhancing the customer experience. While It's fair that customer care agents aren't always accessible to answer customer questions or product-related inquiries, it doesn't mean organizations should abandon the concept of assisting clients 24 hours a day, seven days a week.

Note: For a small business or an established retailer, implementing a live-chat feature in your online store will increase your upsell and cross-sell revenue significantly.

  1. It gives customers access to a comprehensive solution and increases customer loyalty.

Consumers can obtain a much more comprehensive overview of your services while gaining access to new products they don't know you offer. It will benefit the customers because no one wants to purchase different things from different stores when they can buy everything from a specific shop.

How To Upsell And Cross-sell

Although upselling and cross-selling occur with a sales representative at the point of sale, dedicated account managers should also assist in improving the overall customer journey. How then should a business upsell and cross-sell? Read on;

  1. Understand Your Audience

Enterprises need to know their audience once they purchase their first product on your online store. Build your "buyer persona" by utilizing psychographic and demographic information about your customers coupled with customer feedback. Learn about their ambitions, goals, and current issues to determine the most useful, relevant goods you could upsell and cross-sell to them.

  1. Create customer journeys

Plan out the customer journeys to determine how customers will use the service/product and how it will benefit them. When your shoppers start experiencing results (due to your product), they will tell others about it, which will lead to qualified leads.

  1. Consider obstacles and provide answers that correspond to products

Evaluate and analyze your product offers and try to match them with your customer journey before thinking of contacting or sending an email to sell to your existing customer.

  1. Engage in Active Listening

When selling products, it's possible to upsell or cross-sell to your consumers on the go during or after a phone conversation or email interaction. Therefore, practice active reading and listening skills to spot signs that your customers are ready to grab your offers.

In Conclusion

When it comes to boosting revenue, upselling and cross-selling are absolute superstars. If done correctly, you'll gain loyal consumers and a higher profit margin. However, it would be best if you remain cautious to avoid buyers who are not interested in your offers.

Learn more: How to Choose the Best Advertising Platforms for Ecommerce?

 














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