What is cross-selling?
Cross-selling is the act of selling products or services to existing customers. A customer might go to a store to purchase a new subwoofer but leave the store with a new subwoofer in addition to a new receiver, speakers, and more, as a result of the salesperson convincing the customer to purchase them. The customer may have had no intention of purchasing all the additional equipment, but the salesperson was so convincing that the customer couldn't resist.
You can use this same technique to increase the number of products that your customers purchase from you, as well. If you offer multiple products, then you need to use cross-selling because it can double or even triple your earnings in a single transaction. Just think how quickly sales can add up if you're able to successfully incorporate cross-selling into your business and marketing strategy.
Examples of cross-selling
Cross-selling occurs on a regular basis, and many people have no idea that there is an official term to describe it. One good example of cross-selling is if you visit your favorite fast food restaurant and you order a cheeseburger and the employee asks you if you want fries with your burger.
Another example of cross-selling is if a customer goes to a clinic for acupuncture on their back and the acupuncturist asks the customer if they would like a back massage as well.
What is upselling?
Upselling is when a business attempts to encourage customers to purchase enhanced versions of something that they're already purchasing. For instance, a company that sells backpacks might encourage a customer who is going to purchase a smaller backpack to purchase a larger one instead because of multiple benefits.
Upselling has many benefits when compared to other forms of marketing because the customer is already right there in front of you. It's much easier and cheaper to retain the customers that you already have rather than pay for marketing to attract new ones.
Of course, the idea is to retain current customers and attract new ones, but for new businesses just starting out, this can be difficult due to limited funds. Upselling can help to keep new businesses afloat as they work to build their earnings and customer base.
Examples of upselling
Upselling is a popular sales tactic that is very effective for many businesses. One example of upselling is if you go to the cellular phone store to purchase a basic cell phone and the salesperson tells you the benefits of buying an advanced cell phone instead.
Another example of upselling is if you go to the nail salon for a traditional manicure for the lowest price, but the technician raves about the benefits of opting for a premium manicure instead. Of course, this will be enticing to the customer who has already shown an interest in getting a manicure.
Being offered a premium manicure for a higher cost is an ingenious way to maximize a business's earnings because, in many cases, if a customer is already there requesting a service, there's a definite likelihood that they will respond favorably to upselling.
Another example of upselling is if you go to the store to purchase the cheapest smart TV that is for sale, but the salesperson convinces you of the benefits of buying a more expensive TV that has all the latest and greatest features.
You can see how subtle but effective upselling can be, and if you're still failing to completely understand upselling, then opting to contract with a marketing and sales expert like Mailchimp can help you immensely. In fact, the MailChimp marketing experts will take over the entire campaign for you, and help you increase your revenue in the process.