If your company has a strong marketing operation, you probably already have a channel for generating highly qualified new leads . But did you know that according to US marketing consultant Philip Kotler: “getting a new customer costs 5 to 7 times more than keeping a current one”?

And while virtually any marketing book reinforces this concept, many companies still focus their efforts and budget on attracting new customers, when in fact building a long-term relationship with existing customers represents a great channel of opportunity.

So if you want to bet on an underrated strategy that can bring a great ROI to your sales campaigns, you are very right to look into what is cross selling and upselling. 

Want to know how? 

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So, check out the post below about what is cross selling and up selling, the difference between up selling and cross selling and how these tools can be true allies at the time of sales. Stay with me.

Also check out: 6 strategies to retain customers: foolproof .

What is cross selling and up selling?

In short, cross selling is the sales technique that encourages the customer not only to buy the product they were focused on, but also products and complementary items. Up selling, on the other hand, is a technique that encourages the customer to buy a more expensive product, but with better quality than what he was planning to buy.

Now that you know what cross selling and up selling are, let's know how these two strategies work in practice.

cross selling

Cross selling identifies products that satisfy additional complementary customer needs that are not met by the original item. For example, a hairbrush can be sold together to a customer who buys a hair dryer. 

The idea of ​​cross selling is not only to generate more revenue for the company , but also to offer the customer a more complete shopping experience through solutions that better meet their needs.

Cross-selling can be performed by companies of different sizes and segments, and the initial step is to identify in your product and service portfolio which products are interrelated and how they fit into this proposal. In the strategy, this sale must be part of the customer's purchase journey and foreseen from the first contact .

In my point of view, the most practical example to understand cross selling is Mc Donald's: when you go to buy a snack, the attendant immediately asks if fries and drinks come with it and the customer's answer is most of the time yes, because in the his head a “combo” always pays off more.

Another example is online retail: if you go to a sports website to buy a football boot, the website will probably also suggest the sock or any other product you need to play football. 

But remember, in cross selling the customer can buy the two products separately, and the sale of one product is not necessarily linked to the other. The customer can buy the products separately and one can be used without the other.

Up selling

Up selling, on the other hand, aims to try to change the customer's purchase decision for a more expensive product. Reasons for convincing the customer to make the switch include better quality, more quantity, or more features. 

A good example of up selling would be to show a customer that he wants to buy a coffee machine and has opted for a basic model. But then the seller must show how a better model will allow him to prepare a better quality coffee in more quantity or even a better designed machine. The idea is for the seller to identify the criteria that can lead the customer to buy a better product.

The idea of ​​up selling is to make the customer buy a more expensive product, that is, to spend more money on the same type of product he would initially buy. Companies that excel at up selling are effective in helping the customer visualize the value they will get when they buy a higher-priced item. 

I'll use Mc Donald's again as an example when the clerk asks if you want a big potato for a few extra pennies. This is up selling!

Another practical example is when the customer who buys a computer, you present the model he requested, but you also offer another option and explain that for an increase in value, he can have many more features in terms of performance, speed and storage space , etc.

Finally, remember that even knowing what cross selling and up selling is and how they work, it is important to have the premise that both strategies will only be effective if they are planned to be a win-win relationship, that is, the process should be interesting for both parties, both for your company and for the customer.

Okay, now you know what cross selling is, what the difference is between up selling and cross selling and you also know all the information that will help you reflect on how to implement these strategies in your company! But first, check out some selling tips that will help you manage cross selling and up selling at the time of sale:

Sales tips with cross selling and up selling

1) Beware of suggestions

Be very sensitive to the customer and be very careful that the addition or exchange suggestion is directly related to the product of initial interest to the customer. For this suggestion, it is worth applying the golden rules of selling: listen and ask! First listen carefully to your customer and then ask questions to understand who they are, what they care about and what their values ​​are, for example. It is through these strategies that you can see if the customer is sensitive to price, quality, cost-benefit or any other criteria he prioritizes.

2) Careful with the options 

Show the customer not only the relevant items, but also the alternatives for this product or complementary items. Offer options for colors, sizes, models, technologies, etc. But be careful not to confuse the customer and detract from the initial focus.

Want to learn more about this customer persuasion process: Check out my video on how to make your customer buy more when they're indecisive?

3) Sell value

Customers are not interested in products, but in the results that this product will bring. Focus on the benefits of the product or service that price will no longer be a priority for the customer. Also cite praise and recommendations made by other clients and professionals to add credibility.

Check out the video I made below on how to sell value: 

4) Exclusive benefits

The customer must feel that this is a discount, offer or condition created especially for him, so reinforce this at the time of sale. Don't give a discount if the customer didn't ask. And if he asks for a discount or benefit, he always asks for something in return (buy in cash, buy today, buy more products, etc.).

5) Buy now or you will lose

Establish a sense of urgency and point out that if the customer doesn't buy at that time, they may run out of the product because there are few units or because the offer is for a limited time. 

An example that a friend told me: he went into a store to buy a bed. After talking a lot about it, the seller agreed to make an additional discount on a product that already had a discount, because he hadn't sold anything that Saturday due to the day being very beautiful and people having taken the opportunity to go to the beach. Obviously, the discount was only valid for the same day.

6) Take it to the emotional side

Create in the customer the feeling that he really needs that product or service and that he cannot lose the special condition created exclusively for him.

7) Invest in training

Much more than knowing what cross selling and up selling is, your team must train to master the art of up-sell and cross-sell. And this is only possible with training. 

Invest in quality training that really makes a difference, as it will help your team to develop more and more, have more alignment, better performance, efficiency and enhance their skills. And all of this will certainly reflect on your company's results.

Also check out what sales training is and 5 reasons to invest .

Now that you know what cross selling and up selling is, how about knowing a little more about my work? My name is Thiago Concer and I am one of the greatest specialists in sales in Brazil, he is a founding partner of the IEV sales school, leader of the #OSV movement – ​​Proud to be a salesperson and the most hired commercial team coach in Brazil.

Access my products and services page with books, ebooks, training, courses and lectures, and discover the most efficient sales tools to achieve amazing results. And I have one last gift for you who want to improve your sales team's performance. It is a book made for ambitious and determined professionals that teaches you how to build an effective team, train your employees and even step-by-step how to make a successful sale.