Posted 19 Sep 2019, Editor's Desk
Generally, there are two ways to grow your business; either you get more customers or sell more to your regular customers.
Which one would you Adopt? Cross sell vs upsell
It is better to increase your sales by adopting the latter method, that is, by increasing the sales to your regular customers.
Sales to your regular customers can be increased through Upselling and Cross-selling‘.
Increasing your Sales through Cross-Selling
Cross-selling means getting a customer to spend more by selling him related, connected or complementary products.
You can sell a complementary product of 30, 40 or 50 rupees with a 100 rupees product but things can’t go vice- versa.
If you insist on this, the customer would neither buy the complementary product nor the main product.
Example: If a person comes into your shop to buy a camera, you offer him a camera bag, which is a related product. He may buy it.
However, if a person comes to buy a camera bag and you offer him a camera, he won’t buy it.
To cross-sell your product, you have to intelligently pair them up with other products.
Some examples of cross-selling are as follows:
Smartphone Companies: When you buy a smartphone costing 50k, 70k and sometimes 100k, they cross-sell insurance plans with these phones.
Go Daddy: When you buy a domain from Go Daddy, they cross-sell your privacy protection, web hosting products, and many other products.
Car Showrooms: When you buy a car, they cross-sell amplifiers, car cover, seat cover.
Up-selling means getting a customer to spend more by selling him an upgraded or premium product.
In both upselling and cross-selling, you need to understand what type of product your customer will buy.
For instance, a customer comes into your shop to buy something of 100 INR, you tell him that another product, which is expensive, is on offer and you can get it in 150 INR.
The customer thinks that he is getting an expensive item at the affordable price and he will buy it. This is called up-selling.
However, if someone comes to buy a 24 inches T.V, you can sell him a 32 inches T.V but if you offer him a 52 inches T.V, then he will not buy it.
Upselling involves subtle manipulation.
You go on the website of Booking.com and select a room for yourself, a good budget room and then, at that very moment, the website that shows you better options in considerable prices.
Likewise happens with the flight tickets, when there are available business class seats and you are booking an economy class seat, the airline website flashes a discount on their business class.
So, you should also start up-selling and cross-selling your products. This will increase your sales drastically.