What is Up Selling?

Up-Selling is the practice of encouraging your customer to purchase a more complete (and higher value) version of the product they consume or intend to consume in your company.

The most common form of upselling is related to an easy perception by the customer that the more expensive version of your product has benefits or features that are worth the greater investment. It’s a cost/benefit-based tactic.

A very common example happens in restaurants. Note that the price of a half portion of any dish is always more than half of the entire dish. The result is that, even if hunger does not justify the purchase of a whole dish, customers opt for this option, as its cost/benefit is much higher.

You may notice similar examples in markets. Compare prices for a smaller laundry detergent box with a larger one. The biggest one always has a lower cost per volume.


What is Cross-Selling?

Cross-Selling is a way of selling related or complementary products to others that your customer already consumes from you.

The simplest example of this practice can be seen in any McDonald’s. Purchasing a combo is so advantageous that it practically doesn’t make sense to buy just one snack. With this, Mc Donald’s can guarantee a higher average ticket, selling potatoes and soda along with the snack.

Cross-selling, however, is not necessarily performed when the customer makes the first purchase of your product. You may, at any time, offer new products or services in an attempt to complement the first purchase made by them.

An example of “medium-term” cross-selling can be seen in any e-commerce. When you buy a shirt for the first time, for example, in a few days you will start to receive several offers, not only for shirts but for the most different types of clothes that usually match your already purchased shirt.

How to put them into practice?

The first step, after learning what up-selling and cross-selling is, is to structure the value offers. The intent is to ensure that purchasing a more complete version of your product or complementary products is a clear benefit to your customers.

In the case of upselling, you can think, for example, of versions of your product. This practice is very common in online software tools . 2 or more plans are created that follow a functional scale. The next plan always has all the features of the previous plan, with some more features.

In the case of cross-selling, you can start by assembling small packages. They are cheaper than buying the products that comprise it in isolation. Cell phone discount when buying a phone plan, mouse discount when buying a notebook, among other examples.

Putting together a sales plan

The next step is to put together a plan to put all this into practice at the time of sale. The ideal is to sit down with people from the sales team and put together the sales pitch.

An important factor: both cross-selling and up-selling do not only occur at the time of sale. If you sell machines to industry, for example, you can make a maintenance offer after X months of the customer’s purchase of the product. Or if you are a marketing agency, as the client gains confidence in your services, you can seek to take them to a closer and more dedicated service plan, making their most talented collaborators available to work with them.

In these cases, you need a tool to organize yourself. After all, you need to map your customer list and the history of negotiations. This way, you can know when to approach him with an upsell or cross-sell offer. You can start this mapping of the journey and information of each customer with Excel spreadsheets, but CRMs are software designed for exactly this purpose.

In addition to enabling surveys such as “customers who bought product X more than 6 months ago”, they allow the assembly of lists for email marketing shots or approaches via telephone in a well-targeted way, which is a great way of acting for companies that deal with a large volume of customers, offering a personalized value proposition for each one.