upsell on your online storeUpselling and cross-selling are two sales tactics you can use to increase revenue and customer retention. These methods allow you to introduce customers to more of your products, boosting sales, and engaging shoppers. Keep reading and learn how to apply upselling and cross-selling to your online store.


What are Upselling and Cross-selling?

Upselling and cross-selling can increase profit by selling consumers on items that complement existing or current purchases. Upselling often involves promoting something your customer is interested in and then offering an upgrade to that item. For example, upgrading to a better hotel room, or offering a customer the same phone they intended to buy but with more memory at an increased price. The customer feels like they’re getting a deal and the retailer makes a bigger sale. It’s a win-win!

Cross-selling is a similar concept to upselling, but instead of an upgrade, consumers are offered additional products or services that go along with their original purchase. For example, selling someone a phone may open up the opportunity to cross-sell them a charger or phone case.


Why is Upselling Important?

Now that we’ve established what upselling and cross-selling are, it’s important to understand why these practices matter.

Firstly, upselling an existing customer (either during or after their purchase) is considerably easier than obtaining a new customer to make the same deal. Upselling and cross-selling to existing consumers exposes them to other products they may not have otherwise found. For example, a customer buys a winter hat and your site recommends that they buy the gloves to match, the customer may buy those gloves that they hadn’t noticed before.

Another reason upselling is important is it helps establish a relationship with your customer. Consumers appreciate it when they feel a business is trying to save them money. Upselling and cross-selling offer additional or upgraded items at a lower price point, the customer gets a great deal and feels valued. The business also benefits in this situation, making increased profits from the same customer.


Tips for Upselling

Segment your customers. Customer segmentation organizes your target audience into groups, giving you a quick and easy way to communicate promotions or other product info to shoppers. You’ll create consumer personas that are representative of different types of customers. For example, you may segment by location, suggesting heavy winter coats in colder parts of the country and marketing lighter sweaters in warmer areas. This can help you determine what products to upsell or cross-sell to each group.

Upsell based on the customer’s actual needs. One of the best ways to make sure upselling works is to take the customer’s true needs into consideration. For example, if a customer is buying their child’s first phone, instead of upselling them on a newer phone, try cross-selling them a phone case to protect their primary purchase.

Upsell right after checkout. Using pop-up marketing, you can offer complementary items or upgrades based on the purchased product.

Don’t upsell by too much. Keep in mind that past a certain point, your offer loses its value. Trying to upsell more than 25% of what the customer was ready to pay will often result in a lost sale. Instead, keep the price low and value high by upselling within certain parameters.

Know when to stop.  Being too pushy can turn customers away from your store. Instead, present your secondary product’s value in a respectful way, so they feel enticed to buy your products instead of coerced into it.


Final Thoughts

Upselling and cross-selling work by benefiting both consumer and retailer, with the consumer getting products at a great price and increasing sales on the business end of the transaction. These methods also let your customers know that you value their business, which is essential in creating loyal, repeat customers.


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