Cross selling and upselling are both great ways to add additional revenue to your businesses bottom line, both attempt to encourage your customer to purchase additional products or services and to spend more money.
When cross selling a customer will adds in more products from a complementary category that may or may not be related to the same category as the original item purchased, and purchasers aren’t required to make the other purchase to get it. Let me give you an example, you sell book called “how to perfect your golf swing” you could then recommend other products, or cross sell items such as golf gloves, golf balls, golf training aids, clothes, etc. All are related in some way to the original product but you cross categories from books to other products.
Now let’s look at upselling, an upsell adds more products from the same category. Let’s look at our example above of selling a book about perfecting your golf swing. You could then upsell a book plus a DVD package of the book that shows examples of the lessons contained within the book. You could also add on a membership to a group training sessions, perhaps then one on one golf lessons. All of these are an on add on to the book to help the purchaser use the book properly, you have to buy the book to get the other products.
All of this is value added selling, McDonald’s and their “would you like fries with that?” question is perhaps the most famous value add of all times and has generated millions, perhaps billions of dollars. Sales people do these forms of selling every day to increase their bottom lines, the secret is to find ways that you can do it also.
Upselling requires some product planning in order to work. You’ll need to offer your product in a few different forms so that when customers click on one product they’ll automatically be recommended to buy the better upgraded package of the same product with more benefits for them.
One of the best ways to upsell items is to do it directly within the shopping cart, if possible after a user has made the decision to make a purchase and has added the item to a shopping cart. Simply offer more choices within the cart to add on to the purchase they are already making. If you cannot do it this way, send them to a thank you page after they have made their purchase that offers the additional items to add to their package to get the upgraded super-sized version of the product.
Cross Selling Ideas
Cross selling on the other hand is simply a natural progression on to the item they are purchasing. If you are selling eBooks, natural items you could cross sell are eBook readers, reading lights, eBook cases, and anything related to eBooks for that matter.
What’s more, if you sell eBooks about specific topics, you can cross-sell items related to those topics. For instance if you sell golf books you can then also sell golf training aids, golf equipment, golf clothing and much, much more.
As long as what you’re cross selling is somehow relevant to the purchaser, you can recommend it. Many shopping carts, website product listings, etc… now allow you to show related products to the item being purchased. You also see on some of the better shopping carts, a facility that shows customers a list of items other customers purchased when they bought the item they have just bought. The potential to earn more money through cross selling are tremendous.
Upselling and cross selling need to become part of your entire sales funnel, if you don’t offer upselling and cross selling opportunities, just ask yourself how many dollars you are leaving on the table.