The current market is experiencing unprecedented shifts: everchanging regulations, evolving technology, and digital transformation are shaping a new kind of trade. In this scenario, cross-selling and upselling prove to be valuable resources you should take into consideration.
Consumers as active users
Consumers are getting more and more demanding and informed: they expect companies to be transparent, increasingly interactive and able to customize their performances on the basis of the customers’ preferences.
The way in which a brand communicates with its users is becoming more important than price itself, and the companies that are able to offer the best customer service are likely to record increasing revenues.
Why do cross-selling and upselling work so well?
Even if they could look like foreign concepts, we have all experienced cross-selling and upselling situations in our everyday life: cross-selling is what happens when you are buying some ice cream and the cashier asks you if you would like to add some cream, or a some fancy toppings; upselling is telling you that a larger (and more expensive) bowl would entitle you to get a free drink.
Many online sales platforms (one above all: Amazon) use algorithms to suggest us products based on our previous purchases and our favourite items. At present, Amazon relates 35% of its revenues to cross-selling.
Cross-selling and upselling are successful techniques because they aim at selling products related to something the customer is already interested in.
The main difference between the two (compatible) strategies is that upselling is used to sell a higher (and more expensive version) of a product/service/experience, while the aim of cross-selling is to sell extras related to the main purchase.
Overall, these techniques share one main objective: to offer more value to customers persuading them that the benefits are worth the expense.
Know your Customers
The key for successful cross-selling and upselling strategies is knowing as much as possible about your customers: who are they? What do they like? How do they behave? What are the problems they most likely want to solve? What are they looking for?
In order to answer these questions, you have to pay attention to your customer’s journey: how does your customer approach your brand? Does he/she use the Internet to solve his/her problems? Does he/she use a computer or a smartphone? Does he/she have any social media profiles?
In order to satisfactorily reach your audience, you will probably have to display your products/services and communicate your value proposition across many different channels. By going deeper into your relationship with your prospective clients, you will offer a better customer experience and, at the same time, get to know better their habits, preferences, and behaviours.
At this point, you can segment your audience based on the characteristics and behaviours shared by your individual customers in order to build an effective data-driven approach.
In this way, cross-selling and up-selling strategies can finally become increasingly targeted and effective.