Upselling, downselling and cross-selling, regardless of the field, have obvious advantages for any company: more sales. These approaches allow consumers to get as much value as they can from the goods or services of a business.
They also allow multiple opportunities for marketers and salesmen to make their customers aware of such importance, as well as multiple opportunities for further sales.
But for your upselling, cross-selling, and downselling initiatives to be successful, as with all things marketing, they must be done correctly.
The issue is, smart clients can see straight through the line “You might also like …” and always stick to the original purchase. And if you focus on customer satisfaction, this may sound much tougher — where your job is not technically sales, but you can find ways to make sales with customers in your calls or emails.
There’s an integral part of the recipe to really see progress in your product suggestions: consumer delight. You can master the art of upselling and cross-selling when you can persuade your client that your ideas are for their benefit. So, how do you afford to do that? Let’s try out the 3 strategies for sales.
Although each of these terms is similar to each other in a variety of ways, in their purposes and the way they are applied, they are very different. An upsell happens when a salesperson provides a more advanced (or, more specifically, a less basic) product to a customer than what they are actually planning on buying.
McDonald’s old “supersize” order is probably the most commonly recognized example of an upsell: McDonald’s used to have bigger serving sizes of drinks and fries for just a little more cash (the practice has since been discontinued for different reasons).
A more sophisticated example will be when a business provides “VIP service,” “Platinum membership,” or something like that. In this case, on top of the standard offer a company offers, clients can obtain additional services, for an increased cost, of course.
Cross-sells are often confused with upsells, but are part of their own group. A cross-sell is when a company gives a customer who wants to make a purchase, or has already made, a supplementary product or service. To use another famous example from the fast food industry, any time a cashier asks “Would you like fries with that?” a cross-sell occurs. The fries do not enhance the burger they like, as the client has already stated; but they add to the overall fast food meal.
In shops selling video game consoles, another example of cross-selling is also used. Some retailers sell bundle bundles that cut straight to the chase, allowing consumers to make both purchases at the same time (often for a reduced price), as it can be expected that a person purchasing a new device would end up buying games for it.
A downsell is when, when a prospect appears reluctant to make a purchase, a salesperson offers a lower (and presumably more affordable) product or service. Downsells occur at car dealerships all the time. While they would naturally want to show off the best cars on the lot first, once they know the high-end vehicles are out of the price range of a prospect, they typically end up showcasing the more affordable cars.
Downsells exist online too. Some websites, via an exit popup, can give a discount when a visitor shows signs of bouncing. These businesses improve the odds of a tourist turning into a paying customer by selling their goods or services at a lower cost.
Upsells are used best when:
a) The individual is on the cusp of making a purchase
b) You (the salesperson) know as much about this client and their personalities as you can possibly know.
c) The person doesn’t know exactly what they want, but you do, and you can clarify how they would be of greater use to a higher-priced or more advanced product or service.
It is acceptable to use cross-sells when:
a) By making this purchase, you know exactly what they are trying to achieve.
b) You have an extra product or service to deliver that will boost the experience of the client and help them achieve their goals.
Downsells run when:
a) The client is reluctant to make an agreement (such as recurring payments or a time-consuming service)
b) The client is able to walk away
Upsells, cross-sells, and downsells can convert reluctant prospects into paying customers when introduced at the right time, and can turn paying customers into the brand’s loyal fanatics.
Using these tactics also helps your consumers develop a greater understanding of the products and services of your business, and allows you to focus on fostering and displaying empathy for each of your customers. This, in fact, leads naturally to the positive impact on the bottom line of your company that were previously mentioned.
While it is obviously important to produce additional income, it is much more important to increase cases in which you provide your clients with value. In doing so, you all but ensure that the next time they need the services you offer, they will come to you.
Check out my related post: How to find your niche market?