Upselling and cross-selling strategies are key to bringing more sales to any business. Optimize your upselling techniques with methods that provide beyond generic upsell suggestions. Learn how targeted upselling tactics can significantly boost your revenue.
Upselling and cross-selling in B2B marketing refers to steps businesses take to generate more sales through customer nurturing. As per Marketo, businesses gain around 90% of customer value after making the initial sale. The majority (70-95%) of the revenue of a company depends on existing customers through upgrade plans, cross-sells, and upsells.
Aside from using common upsell strategies, companies now can take the help of advanced technologies. Upsell apps from reliable brands such as Glood.AI is allowing businesses to move beyond usual methods of performing upsells and cross-sells. In this article, we explore different aspects of upselling and cross-selling. We discuss the difference between the two strategies, the different upselling strategies, and its benefits.
Although upselling and cross-selling have almost similar outcomes, there's still a difference in how they help a business grow. While cross-selling boosts revenue by suggesting additional or complementary products to customers to purchase, upselling increases profits by offering a better and high-end product.
Another difference in their techniques is related to the intent of the customer. In the case of cross-selling, sellers cross-sell additional products that customers usually don’t intend to buy at first. However, after seeing the suggestions, they may want to these products as they are relevant to their main order. Whereas, one of the prime upselling techniques is to appeal to the desire of customers to buy an item. Here, sellers provide provide products of better quality.
For your understanding, you can consider upselling as a form of upgrade to the already existing purchase by the customer. While cross-selling is a kind of extra purchase, a customer makes. Both upselling and cross-selling strategies work well for business to business and business to consumer fields. However, a combination of both of these strategies can make your brand perform better than earlier.
Today, we have technical solutions like One-Click Upsell. It provides upsell offers to your customers after they make their initial purchase. Here, it eases out and improves the purchasing experience by offering upsell products with a single click. Customers do not need to add products to their cart or enter their payment details again. It is one of the best ways to retarget your customers.
Here are a few of the most effective upselling strategies you should be aware of:
1. Pitching a relevant upsell offer
Firstly, you need to comprehend the upselling type that will be appealing to your customers. Pushing any irrelevant upgrade will not pique their interest. Here’s one of the simplest upselling examples for you to understand the concept: when a customer buys an apple, offer them a better quality apple that will taste sweeter and not an entirely different fruit. However, some businesses make the mistake of attempting to sell products that are totally irrelevant. To avoid this, you can use a checkout upsell app. The app allows you to display personalized product recommendations depending on your customers' recent buys.
2. Make sure to offer value consistently
A majority of businesses consider all of their responsibilities end after they make a sale. In fact, they incorrectly assume that the only time they need to focus on that specific customer is when it's time for an upgrade or renewal. The right approach to handle this scenario is to keep nurturing your customers even after the closing of sales.
To achieve this, you can send them newsletters to keep them updated with your upgrades and other relevant news about the brand. You can provide updates about your product line, upcoming events, discounts, etc. Besides this, consider making phone calls occasionally to keep the connection going well between your brand and customers.
3. Use tools and apps to know what your customers are looking for
From the beginning, utilize tools such as upsell apps that helps to interpret your leads’ requirements. You must be aware of the certain product lists that your customers are looking forward to buying from you. Further, you’ll need to figure out ways to sell updated and better versions of the products to the same customers in the future.
Now, you have to split these leads into different categories and put effort and time into specifically nurturing them. This way, you’ll be able to strategize your target leads better. Also, it will help you in defining an effective timeline for pitching the upgrades to them. We already know it is harder to acquire new customers than to retain old ones. In fact, when you upsell to your existing consumer base, it helps you in meeting your sales target quicker.
4. Prioritize helping customers more than sales
Always focus on providing more value to the customer than just trying to sell your products to them. When you offer them your upgrade, clearly tell them how it is going to benefit them. In simple words, do not urge them to buy an upgraded plan without actually upgrading the quality and value remarkably.
Your customers might already be using your services, products or apps, for their personal convenience. Here you can add an upgrade that offers customized deals to your customers. It will make them feel valued and appreciated, which will directly influence their loyalty to your brand.
5. Offer them valuable discounts and create an environment of urgency
A majority of people do not like to buy products that are expensive. To make them feel more confident in making such a purchase, you can offer them coupons or an attractive offer of one-time discounts. The best way to make sales with such offers is by enabling money-valued incentives.
However, that doesn’t mean that you should make your expensive products drastically cheap. Figure out reasonable discounts for such products or combine it with other relevant services such as free product shipping. Taking all these steps will make your products more appealing regardless of them being expensive.
Provide your customers with certain valuable offers with an expiring period. Make them aware of how they can leverage maximum benefits by considering these offers before the time limit ends. Make sure you put the prices carefully on the products that have high possibilities of sales. This type of time-bound offer works best at the time of special occasions like holiday seasons. In creating urgency, a study found that for a brand called Bob & Lush, their conversions improved by 9.1% and their revenue by 27.1%!
1. It increases revenues
Employing an effective upsell strategy can show a significant increase in revenue and profits. Upselling enables your customer to upgrade to higher valued plans or products of your brand. By deploying a super-effective post-purchase upselling strategy, BombTech Golf raised their average order value to a little over $60, reduced their cart abandonment by 10% and increased their conversion by 45%!
2. It can optimize each sale value of your brand
It is important to note that the possibility of sales with an existing consumer base is around [60-70%] higher than with new customers. It is evident that targeting existing customers is a wiser option and this is exactly what upsell allows you to do. Aside from this, offering value-added services and upgrades can boost the order value faster. Additionally, it has the potential to increase the LTV of your customers.
3. It brings a greater value proposition for the medium that’s offering it
When an intermediary channel provides customers with an offer for upselling, then the credit goes to the respective channel itself. However, if you have a direct channel, then it will boost your value proposition and make you overshadow intermediaries. Remember that your customers will associate your direct channel with your brand name. It implies that a satisfying online direct sales assistance, including upsells, will make your brand look good. However, with intermediaries, it is not possible.
4. It enhances loyalty and trust among your consumer base
In case your customers decide to buy your upsell services or items, and they like it, then their trust and loyalty to your brand will automatically increase. It is because it makes them feel that your brand truly understands them. When they receive a product that is relevant and brings real value to them, they like to reconnect with the brand.
5. Boosts up customer retention
Aside from impulsive purchases, customers usually look for products and services that can address a problem. They might know exactly where the issue is coming from but might not have the best solution in hand. When a business does an effective upsell, it helps customers to receive valuable assistance beyond their expectations. Hence it has the potential to boost revenues by 43% and it positively affects your customer retention.
Upselling delivers unmatched convenience to customers. An effective upsell strategy eases the decision-making process of your customers while making a purchase. Use upsell apps and tools to offer your consumer base something that improves the quality of services or products they receive. It will bring you more customers, retain existing ones, and level up your brand's reputation in the long run.