HOME ยป Sales Techniques ยป Selling Principles ยป What Is Upselling and Cross Selling

MENU

Upselling and cross-selling are two common sales strategies used in the business world to increase the profit from each sale.

To explain these concepts simply, let’s imagine entering a shoe store.

Upselling is a strategy that the salesperson employs to encourage the customer to purchase a higher-quality product than the one initially chosen.

For instance, while you’re selecting a pair of athletic shoes, the salesperson might suggest a more advanced model with better features, perhaps more comfortable or durable, at a higher price.

This way, the salesperson increases the value of the purchase and, consequently, the company’s revenue, while the customer gets a higher-quality product that can better meet their needs.

On the other hand, cross-selling involves offering complementary products to the one already chosen.

Continuing with the shoe store example, after selecting the pair of athletic shoes, the salesperson might recommend buying a pair of sport-specific socks or a water bottle to stay hydrated during physical activities.

In this case, the salesperson aims to increase the value of the purchase by offering additional products that can enhance the customer’s experience with the main product.

Attention, I don’t want you to misunderstand: upselling and cross-selling don’t mean tricking people.

It’s not about giving a customer a lower-quality product than what they chose and charging them more.

That’s not how it works.

Ethics mean more to me than profit.

Upselling and cross-selling are win-win situations: you earn more because you’ve correctly applied these techniques and sold more products to someone who initially wanted to buy only a few things; the person, on the other hand, may spend more, but they take home higher-quality products that may last much longer, along with a range of related items that increase the value of the purchased product, which must already be high quality.

If you work like this, you’ll make millions of dollars; if your goal is to cheat people, maybe you’ll succeed once, then word gets out and you’ll shut down.

Your customers aren’t stupid.

Always respect them, and they’ll shower you with money.


Offer Upselling and Cross Selling Only to Customers and Fans


If you upsell and cross-sell to every customer who walks into your store, making them uncomfortable and trying to sell them higher-quality or complementary products, it’s highly likely that most of them will decline, and may never shop with you again.

You cannot know if those entering your store are in a hurry and only have time for that one purchase.

Furthermore, even worse, someone who may be lacking in confidence might accept your upsell and cross-sell offers out of politeness and end up spending money they don’t have simply because they cannot say no.

You can bid farewell to these individuals.

And rest assured, they won’t speak positively about you.

This is what has led many people – including myself – to prefer online shopping over dealing with someone we perceive as a pushy salesperson.

So, in person, it is strongly discouraged to embarrass people by trying to pitch them products they currently don’t need.

Of course, statistically, someone will accept, but is it worth making an upsell or cross sell and potentially losing these customers?

I say no.

Therefore, these offers should be made online.

If you have an e-commerce website or smartly gather customer data in your store to later contact them via email, you can make upsell and cross-sell offers as if they were pouring rain.

From a strategic standpoint, in the online world, these two offers should be initiated promptly after a person has made a purchase.

If you’ve followed my advice and created your product Sales Page with ClickFunnels, you can automate this process following the instructions provided in the ClickFunnel’s official guide.

Whom should you send the upsell and cross-sell offers via email to?

I know you answered “Everyone,” but the answer is: only to Customers and Fans.

These two customer types know you and trust you, so they expect preferential treatment and to receive offers ahead of others.

If you’re not sure what I’m talking about, I suggest reading the blog post What Is Customer Segmentation before continuing here.


Two Important Features for Up Sells and Cross Sells

1. Immediate Upselling

As I just mentioned, upsell offers and cross-sell should automatically activate as soon as a person purchases your product or service because their defenses are lowered.

Statistically, most people at that moment will not close their wallets but will accept your offers.

Of course, this doesn’t mean that everyone will accept your offers, but the majority will.

Compared to physically visiting a store, the online world provides a more relaxed experience, and it’s easier to read a screen rather than talk to a person.

Furthermore, most of the time, people read all the content on the upsell page, which doesn’t typically happen in person (nobody listens to a salesperson’s offers; people just want to pay and leave without spending a dollar more than planned).

Immediate upsell and cross-sell offers online can earn you 20% more than the average transaction.

Moreover, online, this upsell attempt should never end until the customer says “Stop.”

With ClickFunnels, for example, you need to create several upsell and cross-sell pages until the customer says, “Stop, I don’t want anything else.”

2. Immediate Deadline

To create powerful upsell and cross-sell offers, it is essential to set an immediate deadline that must be clearly visible to the customer.

With ClickFunnels, you can set and display a prominently visible timer on the upsell and cross-sell pages.

The timer is an element that allows you to create what is called a “one-time offer” in the marketing environment.

When I recommended this deadline, many of my readers complained:

“Why rush the customer? Wouldn’t it be better if people made their decisions calmly and peacefully?”

My response has always been the same: people are lazy and endlessly procrastinate.

I am like that myself, for example.

The mistake that could reduce the response rate of upsell and cross-sell is giving the customer the feeling that these offers are available indefinitely, and they can take advantage of these discounts at any time.

If the customer has this perception, they will never make an immediate purchase.

The one-time offer (or “OTO”) is precisely meant to convey to the customer that this is the only opportunity they have to purchase that product with that specific discount or advantage.

So, if you don’t create an immediate deadline, your customers won’t take action.

This applies to all businesses, without exception.

Alternatively, you can offer the opportunity to purchase the upsell or cross-sell product at any time, but only during the upselling process is a significant discount offered.

If the customer closes the page and decides not to accept your upsell offer, they will be required to pay the full price.


Final Thoughts on Upselling and Cross-Selling


What I’ve written in this chapter cannot be disputed.

Not because I said so, but because upselling and cross-selling are techniques that have existed forever, since human interactions began (okay, maybe I exaggerated a bit, but just to make you understand that this blog post isn’t my invention).

“Yes, but it can’t apply to my business…”

Trust me, it can: upselling and cross-selling can be applied to any business.

If you’re a real estate agent selling houses, you may not be able to offer a higher upsell, but you can suggest cross-sells that involve furnishing or renovation services.

Whether you work online or offline, sell physical products, services, or digital products, this is a process you need to develop immediately.

As I mentioned, you don’t have to make offers in person because it doesn’t work, but you should collect your customers’ email addresses and send these offers to your loyal customers.

And you must automate the online upsell and cross-sell process with ClickFunnels.

It’s one of your top priorities.

It’s a job that will take time, but once set up, it will yield immediate results.

It will allow you to earn an additional 20% on every transaction right away.