Upselling and Cross-Selling: What’s the Difference?

With cross-selling, you offer complementary products alongside the customer’s original purchase. But upselling encourages the customer to buy a higher-tier version of the product. The core difference is that cross-selling grows the number of items in a sale, while upselling grows the value of each item. Learning how to create a cross-sell email campaign is the key to repeat purchases.

The world of sales is very competitive, which means that if you have a product or service to sell, you need to be aggressive about promoting it. If you work hard, then your hard work will eventually pay off, but you need to know the proper way to go about selling and promoting what you have to offer. Some businesses use cross-selling to help them to succeed, while others use upselling. Some businesses even opt to use them both for maximum success.

Many business owners, especially those just starting out, confuse cross-selling with upselling. While the 2 strategies are very similar, there are some key differences between them. Here is an in-depth overview of cross-selling and upselling, so you will know the differences as well as how to use each technique to your advantage. The more informed you are about every aspect of the sales world, the more successful you will be in the end.

What is cross-selling?

Cross-selling is the act of selling products or services that complement the customer’s primary purchase. A customer might go to a store to purchase a new subwoofer. But then they leave the store with a new subwoofer plus a new receiver, speakers, and more. The customer may have had no intention of purchasing all the additional equipment, but the salesperson gave them a compelling reason to say yes.

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 increase your earnings significantly. Amazon has attributed roughly 35% of its sales to its recommendation engine. 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 example of cross-selling is when you visit your favorite fast-food restaurant and the employee asks you if you want fries with your burger. Another example of cross-selling is an acupuncturist offering a back massage with an acupuncture treatment.

Or let’s say you own a natural foods store, and your customer is interested in finding a supplement to help them lose weight. Don’t just sell them a weight-loss supplement. With some research, you might notice that they’ve also searched for hair growth supplements and previously purchased biotin from your shop.

This customer may be interested in other health and wellness products, giving you an opportunity to recommend related items. Not every customer is going to respond to your cross-selling techniques. But the more you practice them, the more customers will respond and actually purchase the extras that you’re offering. So, if 1 customer declines, the next 2 could accept.

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.

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 you already have rather than pay for marketing to attract new customers.

Ideally, a business wants to retain current customers and attract new ones, but for new businesses, 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 can be very effective for many businesses. One example of upselling is a salesperson encouraging you to buy an advanced cell phone instead of a basic model.

Another example is a nail technician raving about the benefits of upgrading from a basic manicure to a premium option. 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 can help maximize a business’s earnings. That’s because customers already buying a service may be more likely to respond favorably to an upsell.

Another common upsell involves a software-as-a-service (SaaS) company encouraging users of its free product to upgrade to a paid plan with premium features. As customers reach their usage limits, the upgraded version can offer more room to grow.

Through these examples, you can see how subtle but effective upselling can be. With the right tools, you can put these strategies into place and create more opportunities to increase your revenue.

Cross-selling vs. upselling

By combining cross-selling and upselling, you can increase basket value and revenue. Cross-sell or upsell emails with Mailchimp can help drive additional purchases and increase average order values. But before you start selling, you need to understand the key to each sales technique.

Complexity

Upselling is generally the simpler of the 2 techniques because it focuses on a single product or service. The customer has already made a choice, so you only need to determine whether a higher-tier option would be a good fit.

Meanwhile, creating cross-sell opportunities is more complex because multiple complementary products may fit the original purchase. You need to learn more about the customer’s needs and interests to determine which products to recommend. Otherwise, customers may find the recommendations random and ignore them.

Earnings

With upselling, your earnings increase because the customer is spending more on a larger or enhanced product. When you cross-sell products, you increase your earnings because you are selling more products at the same company.

For example, upselling a customer looking to buy flip-flops could mean convincing them to buy the premium pair with more foot support. As for cross-selling, an example would be something like convincing a customer buying shoes to also get socks or a shoe-cleaning kit.

Effort

Upselling takes less effort because the customer is already at the point of purchase. One well-timed suggestion is often enough. There’s no need for long-term tracking or customer data, and the pitch lives inside the transaction itself.

Cross-selling requires more ongoing work. You need customer data points like past purchases, browsing history, and preferences to recommend complementary products. The effort also spans multiple touchpoints, including a suggestion at checkout, a follow-up email, and a re-engagement offer if they don’t convert.

How to cross-sell

Cross-selling can seem complicated and confusing in the beginning, but it’s actually an easy way to quickly increase your earnings. In fact, many businesses already use a cross-selling strategy to increase sales and get more value from each customer. Here are some of the best tips to follow.

• Learn what your customers want: To get started, you need to learn what your customers want. Understanding their goals and preferences helps you match your recommendations to what they would genuinely want to buy.
• Study their past purchases and online activity: Knowing your customers’ past purchases and online activity is important as well. It can help you know how to cross-sell to a particular person by giving them relevant suggestions.
• Identify complementary products: Look for products that naturally pair with what the customer already bought or plans to buy. Focus on items that add value to the initial purchase or help the customer get more from it.
• Reach out across touchpoints: Find cross-sell opportunities across the entire customer lifecycle. For example, you might recommend complementary items at checkout, and then follow up by email, SMS, or personalized website recommendations.

How to upsell

Upselling is also easy to implement, and the more you do it, the easier it will become and the more comfortable you will be. Here are the key steps to make upselling a consistent part of your sales approach.

• Identify what you can upsell: Identify which products you can upsell during the initial purchase, whether it’s a more expensive version or a package with value-add features. For example, a customer choosing a basic service might benefit from upgrading to a premium version with more features.
• Communicate the product benefits: During the buying process, explain what the customer gains by choosing the premium product, whether that’s more features, better performance, or added convenience. Focus on the value the upgrade delivers rather than the price difference.
• Respect the customer’s choice: Not all customers are going to budge when you try to upsell them, which is fine. Your customers can choose what they want to purchase without upgrading to the superior version or getting an add-on.
• Stay consistent with every customer: On the other hand, there will be customers who can be easily convinced to go with the advanced or premium plan. So, be sure to be consistent and try to upsell each customer to increase revenue.

How to create a cross-sell email campaign

A cross-sell email campaign automatically recommends complementary add-ons to recent buyers based on what they just ordered. These targeted flows use previous purchases, behavioral triggers, and smart timing to boost average order value. Follow these 7 steps to build targeted cross-sell emails for your individual customers.

Step #1: Segment your audience for better targeting

The first step is to split your customer list into smaller groups (or segments) based on what they’ve already bought. Segmentation can improve email performance, with segmented campaigns seeing 30% more opens and 50% more clicks, as reported by Robly.

Purchase history is a great starting point, but the more you know about your target customers, the sharper your recommendations. Many shoppers willingly share details like their favorite product categories and other preferences in exchange for personalized recommendations. All you have to do is ask. Send out surveys or add a quick preference quiz to your welcome flow to gather what you need.

From there, Mailchimp’s Predicted Segments can help you segment customers based on their expected buying behavior. Use these insights along with what you already know about your customers to target your cross-sell campaigns.

Step #2: Choose the right product recommendations

Next, decide how you want to recommend products to individual consumers. Your email marketing platform can use data from your connected online store to automatically make helpful suggestions using the customer’s purchase history. Or you can choose other options, such as bestsellers or new arrivals.

Add a Product Recommendation content block to your email and choose the type of recommendation you want to show. Keep the number of products limited so customers can easily focus on their top options and maintain interest.

Step #3: Create your email design and copy

Now, build an email that puts your product recommendation front and center. Keep the layout simple so customers can quickly see what you’re recommending and why. Use a single clear call to action (CTA) to guide them to the next step.

Your copy should focus on how the recommended products complement what the customer already bought. You can also include ratings, reviews, or other social proof to build trust. If the offer has a real deadline, highlight it with phrases like “Limited time” to create a real sense of urgency.

Also customize the subject line. Keep it short and highlight the product’s value proposition. You can also include a personalized greeting with the customer’s name. This grabs their attention faster and makes the email feel more personal.

Step #4: Set behavioral triggers for your cross-sell campaigns

At this point, you need to choose the customer action to start your cross-sell campaign. This action is a behavioral trigger, and it’s what tells your email tool when to send. Common triggers include a completed purchase, an abandoned cart, or a repeat visit to a product page.

To take advantage of every cross-sell opportunity, set up marketing automation flows. Through this system, you can add different paths based on what customers do next. For example, if a customer buys your recommended product, they’ll leave the flow. But if they don’t, they might receive a follow-up message with a special offer.

Step #5: Time your cross-sell emails strategically

You’ll also need to decide how long to wait after the trigger before sending your cross-sell email. After purchase confirmation, consider waiting 24-72 hours to send your recommendation while the first purchase is still fresh in the customer’s mind.

The day and time can matter, too. According to Omnisend, cross-sell emails sent on Fridays had the highest conversion rate at 5.4%, while 8 pm generated the most orders. Use these benchmarks as a starting point, then test different send times based on your customers’ purchase cycles.

Step #6: Measure average order value and other metrics

Once you launch your campaigns, keep an eye on the numbers to see what’s working. The most important metrics to track are:

• Click-through rate: The percentage of readers who clicked a link in your cross-sell email
• Average order value: The average amount a customer spends per order
• Revenue per email sent: Total revenue divided by emails sent
• Customer lifetime value: The total revenue generated across each existing customer relationship

Look at these metrics together instead of judging your campaign by customer value alone. Also, make sure to celebrate small wins. Even a modest increase in these metrics can add up across hundreds or thousands of orders. For example, increasing average order value by 10% means an average $50 order becomes $55. Across 1,000 orders, that extra $5 adds up to $5,000 in additional revenue.

Step #7: Improve how your cross-sell emails work

Your first campaign is just the starting point. To keep growing revenue, you need to keep improving. The best way to do that is through A/B testing, which is a must for any email campaign you want to get real results from.

Test a single thing at a time, like your subject line, featured product, or CTA. That way, you can see exactly what made the difference and use those insights to shape your next campaign. Small improvements can add up fast when your emails run every day.

Don’t forget to test across devices too, since your emails often look and perform differently on desktop and mobile. It’s also worth experimenting with your automations themselves. Try tweaking things like trigger timing or send frequency to see what makes your emails feel most relevant to each customer.

Boost revenue by cross-selling and upselling

Two distinct strategies can help you get more value from each sale: cross-selling and upselling. Cross-selling can increase the number of products people buy, while upselling can boost how much they spend on the original purchase.

So, if you want to maximize your earnings, then you need to learn to perfect both techniques. Not every customer will be an opportunity for upselling and cross-selling, but by understanding how both processes work, you can make the best decision for each situation.

Frequently asked questions

What is a cross-sell email campaign?

A cross-sell email campaign recommends products that complement something a customer has already bought. For example, if someone buys a new phone, they might receive an email recommending a case or a charging station. You can automate these campaigns to send relevant recommendations based on purchase behavior.

When should I send a cross-sell vs. an upsell email?

Cross-sell when a complementary item can add value to the customer’s purchase. Upsell when a higher-tier version offers features or benefits that better fit the customer’s needs. You can also use both email marketing strategies together, as long as the recommendations are relevant to the customer.

How do I automate cross-selling emails?

Set up behavior-triggered flow in your email platform so cross-sell suggestions send automatically based on what customers do. It’s worth the setup because automation ensures your emails reach people at the moment they’re most likely to buy. Start with a single flow—post-purchase usually works best—and build from there once you see what’s working.

How much revenue can cross-selling and upselling generate?

Results vary, but personalized marketing can have a measurable impact on revenue. McKinsey research found that personalization can increase revenue by 5%-15%. Automation can also help. Mailchimp customers using marketing automation flows generate up to 9 times more revenue than with bulk email.

What are some upsell and cross-sell email examples?

For cross-sells, think Amazon’s “Frequently bought together” emails, like when they suggest a memory card after you buy a camera. Upsells are more about trading up. This includes Grammarly nudging you toward Premium when you hit a feature limit. Or the Dollar Shave Club offering a fancier razor tier at renewal time with upsell emails.

Where can I find cross-selling email templates?

Many email marketing platforms offer templates you can customize for cross-selling campaigns. Choose a design that makes it easy to feature complementary items with clear product images, short descriptions, and a single CTA. Then, customize the design to match your brand and the products you want to recommend.