{"id":89,"date":"2019-09-17T16:14:11","date_gmt":"2019-09-17T06:14:11","guid":{"rendered":"https:\/\/www.evolvedcontact.com.au\/articles\/?p=89"},"modified":"2022-12-20T10:21:54","modified_gmt":"2022-12-20T00:21:54","slug":"should-i-cross-sell-or-upsell","status":"publish","type":"post","link":"https:\/\/www.evolvedcontact.com.au\/articles\/should-i-cross-sell-or-upsell\/","title":{"rendered":"Should I Cross-sell or Upsell?"},"content":{"rendered":"\n<p class=\"has-medium-font-size wp-block-paragraph\">For most businesses, salespeople are out there <a href=\"https:\/\/www.evolvedcontact.com.au\/articles\/finding-the-right-prospects-how-digital-marketing-can-change-your-business\/\">finding new customers <\/a>and customer services\/success teams are in there servicing and retaining those customers. With these in place and hopefully working well, as a business leader the question to ask now is &#8220;Should I cross-sell or upsell?&#8221;<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Cross-selling and upselling are strategies to earn more revenue from existing customers. It\u2019s a different type of sale to the cold call\/prospecting type of sale but it\u2019s just as important in the development of a sustainable revenue stream for your business.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">When it comes to growing your revenue, including cross-selling and upselling strategies can have huge ROI for your business.  If you like statistics (like I do) then here&#8217;s a doozy: acquiring a new customer is anywhere from <a href=\"https:\/\/hbr.org\/2014\/10\/the-value-of-keeping-the-right-customers\"><strong>5x to 25x more expensive<\/strong><\/a> than retaining an existing one. Customers you retain are likely to spend more and purchase more frequently.&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Existing customers are <a href=\"https:\/\/www.amazon.com\/dp\/B0031AI0VC\/ref=dp-kindle-redirect?_encoding=UTF8&amp;btkr=1\">easier to sell to<\/a>. You will have a <strong>60-70% chance of success when selling to an existing customer<\/strong>, compared to the 5-20% likelihood of selling to a new prospect. So if you&#8217;re not actively engaging in cross-selling and upselling, you\u2019re leaving money on the table.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">The key to being successful at both of these is making an offer that&#8217;s appropriate for where the customer is at that time.&nbsp;In this article I\u2019ll share some information about cross-selling and upselling. Looking at what it is, then how and when to do it.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\"><strong>So what is Cross-selling and Upselling<\/strong>?<\/h2>\n\n\n\n<p class=\"has-text-align-left has-medium-font-size wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><strong>Cross-selling<\/strong> is encouraging the purchase of anything in conjunction with the primary product.&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><em>An example of cross-selling<\/em> &#8211; \u201cWould you like fries with that?\u201d The customer has purchased a burger in this instance, so the fries are being cross sold <em>in conjunction <\/em>with the burger as a complementary product.&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><strong>Upselling<\/strong> is encouraging the purchase of anything that would make the primary purchase more expensive with an upgrade or premium<\/p>\n\n\n\n<p class=\"has-text-align-left has-medium-font-size wp-block-paragraph\"><em>An example of upselling<\/em> &#8211; \u201cWould you like to add bacon to your burger for just $1 more?\u201d Here we are suggesting a product that will upgrade the primary purchase.. and make it more expensive.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Where cross-selling is offering a complementary product, upselling is offering another product that&#8217;s an upgrade or premium of the primary purchase the customer has made.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\"><strong>So which is more effective?<\/strong><\/h2>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"> Well <a href=\"https:\/\/econsultancy.com\/up-selling-is-20-times-more-effective-than-cross-selling-online\/\">this article<\/a> suggests upselling is 20x more effective.. This may or may not surprise you from a salesperson&#8217;s perspective; it&#8217;s a bit easier to sell something related to what a customer has already purchased than to sell them something that&#8217;s complementary, but still, different. (That being said, I\u2019ll always say yes to the fries question&#8230;so they both ofter have their place)<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Think of it as the difference between a complementary product and an upgrade: Where cross-selling suggests another purchase alongside the primary product, upselling encourages customers to make an additional purchase to use with the primary product.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">These sales approaches are often used interchangeable, but different scenarios with different customers can call for one specific approach over the other. Cross-selling and upselling can occur at the point-of-sale with a salesperson but how do you approach this with existing customers?<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\"><strong>How do I Cross-Sell and Upsell<\/strong>?<\/h2>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">You or your marketing team will often understand the certain life stages of your customers and where opportunities may be relevant further down the line with a customer, once they&#8217;ve already purchased the initial product. <\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Over the course of their relationship with you, there will be key stages which can be used as &#8216;checkpoints&#8217; to engage with your customers and inform them about other options.&nbsp;<\/p>\n\n\n\n<p class=\"has-text-align-center has-custom-size wp-block-paragraph\" style=\"font-size:clamp(22.041px, 1.378rem + ((1vw - 3.2px) * 1.745), 36px);px\"><strong>1. Understand Your Audience<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">&#8220;Don&#8217;t paint your customers with a broad brush.&#8221;<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">It&#8217;s important to get to know your audience once they&#8217;ve already bought your product or service. Group your customers into tenure, regions, demographics, age and any identifier that will help make a more personalised engagement.  <\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Review each grouping and try to understand what their goals and their challenges may be in order to identify the products you could cross-sell and upsell (that will be most useful to them).<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Find that point in the customer journey that they&#8217;ll likely be excited to hear your call knowing that you might ask them to spend more money. Wait until they&#8217;ve reached this point before trying to cross-sell or upsell. <\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Avoid calling after they&#8217;ve just purchased your product, while they&#8217;re onboarding and before they&#8217;ve seen its value, as trying to sell to them here will likely be unsuccessful.<\/p>\n\n\n\n<p class=\"has-text-align-center has-custom-size wp-block-paragraph\" style=\"font-size:clamp(21.536px, 1.346rem + ((1vw - 3.2px) * 1.683), 35px);px\"><strong>2. Choose The Right Approach<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size has-custom-size wp-block-paragraph\" style=\"font-size:clamp(16.293px, 1.018rem + ((1vw - 3.2px) * 1.088), 25px);px\">&#8220;Don&#8217;t try sell everything to everyone.&#8221; <\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Before you get on a call and attempt to cross-sell and upsell to an existing customer, take some time to review your product offerings and try align them with each grouped audiences. <\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Form a clear idea of common challenges your customers face and look at which of your products you can bring to the table that will provide those customers with additional value. <\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">This will form the basis of your approach when making calls and will ensure that your customer is treated with a positive experience that\u2019s tailored to them.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Spending time to create appropriate calling scripts can help with a more consistent and professional approach, keeping your calls both pleasant and informative for your customers.<\/p>\n\n\n\n<p class=\"has-text-align-center has-custom-size wp-block-paragraph\" style=\"font-size:clamp(22.041px, 1.378rem + ((1vw - 3.2px) * 1.745), 36px);px\"><strong>3.Use the right people to cross-sell and upsell your customers.<\/strong>  <\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Your current team might be able to cross-sell or upsell on the fly during a phone call or over an email exchange (or live-chat exchange), but often they are handling many different business objectives, lack experience or the right sales skills to be truly successful.&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">It\u2019s important that you chose agents with experience in warm sales, open questioning, active listening and reading skills for picking up signals that your customers might be ready to hear your offer. &nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">You want to provide your customers an enhanced experience, so avoid taking risks on using unskilled staff that might jeopardise your valuable relationships. <\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">By using the right questioning techniques, a skilled agent will be able to uncover new needs and determine if a customer will benefit from either upselling and\/or cross-selling. Once known, the agent can simply link the benefits of the specific products or services that address these customers needs.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">This is where you may consider partnering with an <a href=\"https:\/\/evolvedcontact.com.au\/services\">outsourced partner<\/a> to immediate access these skilled and experienced resources, keeping your internal team focused on existing objectives.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">If you would like to discuss how Evolved Contact can help run and maximise the ROI of your cross-selling and upskilling activities please enquire <a href=\"https:\/\/evolvedcontact.com.au\/contact\">here<\/a><\/p>\n\n\n\n<p class=\"has-custom-size wp-block-paragraph\" style=\"font-size:13px\"><br>Sources: <em>Harvard Business Review; Marketing Metrics: The Definitive Guide to Measuring Marketing Performance; econsulting.com; Hubspot; Evolved Contact<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Existing customers are easier to sell to.. You will have a 60-70% chance of success when selling to an existing customer, compared to the 5-20% likelihood of selling to a new prospect.<\/p>\n","protected":false},"author":1,"featured_media":271,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,2,4],"tags":[10,11,14,15,17,20,22,25,26,27,28,29,31],"class_list":["post-89","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-development","category-digital-marketing","category-sales","tag-business-development","tag-business-growth","tag-crossselling","tag-digital-marketing","tag-evolved-contact","tag-lead-generation","tag-marketing","tag-revenue","tag-roi","tag-sales","tag-sales-training","tag-selling","tag-upselling"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Should I Cross-sell or Upsell? &#8211; Articles - Evolved Contact<\/title>\n<meta name=\"description\" content=\"Your team will have a 60-70% chance of success when selling to an existing customer. 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