What’s cross-selling and up-selling?
Saturday, March 31st, 2007Cross-selling is the strategy of selling other products to a customer who has already purchased (or signaled their intention to purchase) a product from the vendor. Cross-selling is designed to increase the customer’s reliance on the company and decrease the likelihood of the customer switching to a competitor.
Up-selling is a sales technique, where a salesman attempts to have the consumer purchase more expensive items, upgrades, or other add-ons in an attempt to make a better sale. Up-selling usually involves marketing more profitable services or products, but up-selling can also be simply exposing the customer to other options he or she may not have considered previously.
Examples of up-sales are adding side dishes to a food order, selling an extended service contract for an appliance, or selling luxury finishing on a vehicle. A common technique for successful up-sellers is becoming aware of a customer’s background and budget, allowing them to better understand what the particular person might need. Many companies teach their employees to up-sell products and services.