In this article, we will define what cross-selling and upselling are. We will then see the common points but also and above all the differences between the two techniques.
Article_Upsell-CrossSell_Hero
Summary
What is upselling?
What is cross-selling?
Common points between upselling and cross-selling
Differences between upselling and cross-selling
What is upselling?
Definition: Upselling is a sales technique aimed at encouraging the customer list of australia whatsapp phone numbers to opt for a higher-end or value-added product compared to their initial choice. Upselling is sometimes translated as “moving upmarket”.
Here are 5 examples to illustrate this technique:
Ready-to-wear: you want to buy pants A, the seller suggests pants B, which is of better quality.
Mobile phone: you want to buy smartphone A, the seller encourages you to buy smartphone B which is newer and has more options.
Air: you select a basic fare for your next flight, the airline suggests a fare including advantageous services.
Catering: you order dish A, the waiter suggests dish B, which is tastier.
Hospitality: you book a room, the hotelier offers you an alternative room, with a better view, more spacious, better equipped.
Here is the example of Air France which, when choosing a ticket, offers its different fares with a list of services included or not:
Article_Upsell-CrossSell_Upsell-AirFrance
What is cross-selling?
Definition: Cross-selling is a sales technique that consists of offering complementary products or services to the main item that the customer is considering purchasing. Cross-selling is sometimes translated as additional selling or cross-selling.
Here again, let's give some examples from different sectors:
Electronics: When you buy your new laptop online, the site offers you a carrying bag, a wireless mouse and antivirus software to complete your purchase.
Article_Upsell-CrossSell_Cross-Sell_Fnac
Cosmetics and beauty: you are about to buy a moisturizer, we suggest a facial cleanser to complement it.
Article_Upsell-CrossSell_Cross-Sell_Sephora
Travel: you buy a train ticket on SNCF Connect. The site offers you a vehicle rental service.
Article_Upsell-CrossSell_Cross-Sell_SNCF
We could give endless examples. And for good reason, cross-selling and upselling strategies have become widespread and are used in all sectors, regardless of the economic model (retail, e-commerce, subscription, etc.).
Common points between upselling and cross-selling
It is no coincidence that cross-selling and upselling are sometimes confused. The two approaches share common points.
In both cases, the main objective is to increase the value of the average basket , and therefore the company's revenue. Only the method differs:
In the case of cross-selling, the customer is encouraged to add other products (complementary products).
In the case of upselling, the customer is encouraged to choose an improved version of the product or service they are considering purchasing.
Cross-selling and upselling, when implemented intelligently , also aim to improve the purchasing experience .
Offering complementary or better quality items ultimately helps increase customer satisfaction (and ultimately customer loyalty):
Cross-selling allows the customer to buy in one go what he would have bought in several installments.
Upselling allows the customer to purchase a product or service that better meets their expectations and needs.
Cross-selling and upselling allow you to anticipate or even exceed your customers' expectations.
The key to successful cross-selling and upselling strategies lies in the relevance of recommendations. You cannot do cross-selling or upselling without:
A good knowledge of its product catalog , of the complementarities between products, of the logical associations, of the range relationships between the products... It is difficult to industrialize and automate a cross-selling and/or upselling strategy without solid Product Information Management.
A good knowledge of your customers , their expectations, their needs, their preferences. This requires good management of customer data.
The last common point between cross-selling and upselling: both are generally based on the implementation of recommendation engines to automate the suggestions offered based on the data available: product data and customer data.
Differences between upselling and cross-selling
Upselling and cross-selling are often confused, mixed up, because of the similarities between the two approaches. But we are dealing with two different sales techniques. We will now review the main differences between cross-selling and upselling.
The objectives
Cross-selling and upselling serve to increase the average basket, but in different ways:
Cross-selling is used to increase the volume of items added to the cart and purchased. For example, instead of buying only a computer, the customer buys the computer + a cover + antivirus software.
Upselling is used to increase the value of the products purchased . Instead of buying a computer for 600 euros, the customer ends up buying a computer for 900 euros that has more options.
Article_Upsell-CrossSell_Objectives
Temporality
The temporality of cross-selling and upselling is not always the same.
The temporality of upselling:
Upselling on physical products is mostly done before the order is finalized, whether before or after adding to the cart.
Upselling on services is done before or after the order is finalized. Indeed, the customer of a software who has subscribed to the Light subscription may be offered the Pro subscription later.
The temporality of cross-selling:
When it comes to cross-selling, there is no difference between physical products and services. A customer can be offered complementary items during the purchase, before paying for their basket, or later, post-purchase. Example: you bought a bike, you receive an email a month later inviting you to buy maintenance products.
Cross-selling and upselling incentives can therefore, depending on the case, be carried out:
During the act of purchase, whether on the website or in store.
After the purchase, generally by using marketing channels (email, SMS, etc.) and marketing automation.
Note: Cross-selling and upselling operations that are carried out post-purchase do not have an impact on the average basket, but on the turnover. Which leads us to the next point.
Financial benefits for the company
Upselling allows you to increase the margin on individual sales. A company generally makes more margin on a computer worth 2,000 euros than on a computer worth 1,000 euros.
Cross-selling mainly has an impact on turnover.
Upselling allows you to sell products at a higher price, cross-selling allows you to sell more products.
What you need to remember
Upselling and cross-selling are two proven sales techniques. They are omnipresent on the internet, but also used in physical commerce.
In this article, we have seen the differences between cross selling and up selling, but also their common points. Let us add here that it is entirely possible to combine up selling and cross selling. These are not mutually exclusive strategies, on the contrary.
Let's say it again, the performance of a cross-selling or up-selling strategy is based on a solid knowledge of your products and your customers ... therefore on good data management and the use of suitable technologies. Marketing, today more than ever, is based on your ability to collect and exploit the data available. This is also why our Actito marketing platform natively integrates a Customer Data Platform. No advanced marketing without centralized, unified and properly prepared data.
Would you like to discover our platform and how it can help you implement cross-selling and up-selling strategies? Do not hesitate to contact us for an initial discussion.