The Power of Upselling and Cross Selling Strategies for Boosting Revenue
Upselling and cross-selling are two sales techniques that can really help you increase your average order value and in turn, your profits.
Upselling is the process of encouraging a customer to purchase a more expensive or higher-end version of the product they are considering. For example, if a customer is looking at a £100 pair of shoes, you might upsell them to a £200 pair of shoes that has more features or is made from higher-quality materials.
Cross-selling is the process of selling additional products to a customer who is already making a purchase. For example, if a customer is buying a new laptop, you might cross-sell them a case, a mouse, or a carrying bag.
Both upselling and cross-selling can be effective ways to increase your average order value. However, it’s important to do it in a way that is natural and doesn’t pressure the customer.
Here are a few tips for upselling and cross-selling effectively:
• Be knowledgeable about your products. The more you know about your products, the better you’ll be able to sell them. Make sure you know the features, benefits, and price points of all of your products.
• Be friendly and helpful. Customers are more likely to buy from someone they like and trust. Be friendly and helpful when you’re interacting with customers.
• Ask questions. The more you know about what the customer is looking for, the better you’ll be able to upsell or cross-sell them. Ask questions about their needs and wants.
• Offer value. When you’re upselling or cross-selling, make sure you’re offering something of value to the customer. Don’t just try to sell them something for the sake of selling.
• Be patient. It takes time to build relationships with customers and upsell or cross-sell them effectively. Don’t get discouraged if you don’t see results immediately. Just keep working at it and you will eventually see results.
By following these tips, you can increase your average order value and grow your small business.
Struggling with ideas? Here are some real-life examples of how upselling and cross-selling can be used to move a client to a more profitable product:
• A coffee shop might upsell a customer to a larger size coffee or a more expensive drink.
• A clothing store might cross-sell a customer a belt or a scarf to go with their new outfit.
• A shopify e-commerce store might upsell a customer to a faster shipping option or a more comprehensive warranty.
We can also learn from some of the best in business when it comes to sales techniques. Lets explore two examples:
Example 1: Starbucks and Their Upselling Mastery
Starbucks knows how to reel you in with their tempting upselling techniques. They have mastered the art of getting you to spend a little extra on your favourite beverages. Let’s take a closer look at how they do it:
First off, have you noticed how many ways you can customize your drink at Starbucks? They offer a whole array of flavoured syrups, extra shots of espresso, and even whipped cream to jazz up your order. They cleverly suggest these add-ons, making it hard to resist upgrading your basic coffee and spending a bit more.
And let’s not forget about the cup sizes. Starbucks has a size for everyone, from tall to venti. But here’s the sneaky part: the bigger the cup, the higher the price. It’s a smart way to tempt you into going for that larger size and treating yourself to a more expensive drink.
But it doesn’t stop there. Starbucks loves to introduce limited-time promotions and seasonal specials. They know how to create a sense of urgency and FOMO (fear of missing out). So when you see that holiday-themed beverage or special edition merchandise, you can’t help but add it to your order, right?
Oh, and have you joined their loyalty program, Starbucks Rewards? It’s designed to make you feel like a VIP. They reward you for your loyalty with perks and exclusive benefits. And guess what? The more you spend, the more rewards you unlock. It’s a clever way to encourage you to up your spending game and enjoy those extra perks.
Example 2: Amazon and Their Cross-Selling Prowess
Now let’s talk about Amazon and their amazing ability to cross-sell products. They are the masters of getting you to buy more than you originally planned. Here’s how they do it:
Have you ever noticed those product recommendations on Amazon? They seem to know exactly what you’re interested in. That’s because they analyze your browsing and purchase history to offer personalized suggestions. It’s like having your own personal shopper, whispering in your ear, “Hey, you might like this too!” And let’s be honest, they’re usually right.
But it doesn’t stop at recommendations. Amazon has these clever sections on product pages called “Frequently Bought Together” and “Customers Who Bought This Also Bought.” They show you items that are commonly purchased alongside the ones you’re looking at. It’s hard to resist the temptation to add those related products to your cart.
And have you ever come across those bundled deals on Amazon? They combine related products and offer them at a discounted price. It’s like getting a package deal and saving some bucks. Not only does it increase the total amount you spend, but it also introduces you to new products or categories you might not have considered before.
But here’s the real kicker: Amazon makes it so easy to buy. They have this one-click ordering feature and a super smooth checkout process. They want to make sure there are no obstacles standing between you and your purchase. It’s all about convenience and making it tempting to click that “Buy Now” button.
So, whether you’re enjoying a cup of Starbucks coffee or shopping on Amazon, these companies have figured out the art of getting you to spend a little extra. They understand your preferences, tempt you with irresistible offers, and provide a seamless and personalized experience that keeps you coming back for more.
Looking for ways to boost your sales in your small business? Book a conversation with Jamie Morgan a business coach and marketing mentor at Help Me Grow. Together we can discuss ways to improve your bottom line whilst creating a more appealing product or service for your customers.