Up-Sell and Cross-Sell: What are they and how to apply?

by Moises Hamui October 12, 2023

Up-selling and cross-selling are two sales techniques widely used in digital marketing.

They consist of offering the customer products or services that are complementary or superior to those they have purchased or are interested in purchasing.

In this way, the average value of the order increases and customer loyalty is created.

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What is up sell?

Up selling is a sales technique that consists of offering the customer a product or service of higher quality or price than the one they have purchased or are about to purchase. The objective is to increase profit per sale and satisfy customer needs with a more complete solution.

Up selling is based on the principle that the customer has already shown interest in a product or service, and therefore, is more willing to accept a superior offer that provides more value. In addition, up selling allows you to create a relationship of trust with the client, by showing them that you are offering the best for their situation.

To apply the up sell successfully, it is important to take into account the following aspects:

Offer a product or service that is truly superior . It is not about deceiving the customer or selling them something they do not need, but rather offering them an option that provides them with more benefits, functionalities or quality than the one they initially chose.
Offer a product or service that has a reasonable price-quality ratio . It is not about inflating the price of the superior product or service, but about offering the customer added value that justifies the price difference. Additionally, you can use techniques such as showing the price per unit, offering discounts or financing, or comparing the price with that of the competition.
Offer a product or service that is consistent with the initial purchase . It is not about offering the customer something that has nothing to do with what they have bought or are interested in buying, but rather about offering them an option that is compatible, complementary or similar to the one they have initially chosen.

What is cross-selling?

Cross-selling is a sales technique that consists of offering the customer products or services related or complementary to the one they have purchased or are interested in purchasing. The objective is to increase the average order value and create a long-term relationship with the customer, offering them solutions that improve their purchasing experience.

Cross-selling is based on the principle that the customer has already shown interest in a product or service, and therefore, is more willing to accept an additional offer that provides more value. In addition, cross-selling allows you to create a relationship of loyalty with the customer, by showing them that you are offering the best for their situation.

To apply cross-selling successfully, it is important to take into account the following aspects:

Offer a product or service that is truly related or complementary . It is not about selling the customer anything, but rather offering them an option that helps them make better use of the product or service they have purchased or are interested in purchasing.
Offer a product or service that has a reasonable price-quality ratio . It is not about charging the customer an excessive price for the additional product or service, but rather about offering added value that justifies the price difference. Additionally, you can use techniques such as showing the savings by purchasing several products together, offering gifts or samples, or comparing the price with that of the competition.
Offer a product or service that is consistent with the initial purchase . It is not about offering the customer something that has nothing to do with what they have bought or are interested in buying, but rather about offering them an option that is compatible, complementary or similar to the one they have initially chosen.

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What are the benefits of applying up sell and cross sell?

Applying up sell and cross sell has multiple benefits for both the business and the customer. Among them, we can highlight the following:

Increase sales and profits . By offering complementary or superior products or services to the customer, the average order value is increased and cross-selling potential is exploited.
Improves customer satisfaction and loyalty . By offering products or services that meet the customer's needs and expectations, you improve their shopping experience and create a long-term relationship with them.
Differentiate the brand from the competition . By offering unique or exclusive products or services to the customer, a competitive advantage is generated and the brand is positioned as a reference in the market.

How can we sell more with up selling and cross selling?

To successfully apply up selling and cross selling techniques, it is important to follow a series of steps that help us identify sales opportunities, segment customers, create personalized offers and measure results. Below, we explain each of these steps:

Analyze your catalog of products or services . Identify which products or services are complementary or superior to others, and create combinations that provide value to the customer. For example, if you sell clothing, you can create outfits with clothes that match each other.
Segment your customers according to their profile and behavior . Use tools such as CRM (Customer Relationship Management) or web analysis to understand the characteristics, preferences, needs and purchasing habits of your customers. This way you can offer them products or services appropriate to their interests and expectations.
Create personalized and attractive offers . Design persuasive messages that highlight the benefits and advantages of the products or services you offer such as up sell or cross sell. Use techniques such as scarcity, urgency, social proof or reciprocity to build trust and motivate action. In addition, you can use tools such as pop-ups, banners, emails or social networks to communicate your offers at the right time.
Measure results and optimize your strategy . Use indicators such as average order value, conversion rate, cost per acquisition or return on investment to evaluate the performance of your up sell and cross sell actions . This way you will be able to identify areas for improvement, correct possible errors and optimize your strategy.

AIDA model

The AIDA model is a method used to design and execute effective marketing campaigns. It is based on the four phases that a potential customer goes through before making a purchase: attention, interest, desire and action.

Attention : This is about capturing the attention of the potential client, awakening their curiosity and generating a positive first impression. To do this, you can use visual elements, eye-catching headlines, provocative questions or surprising data.
Interest : This is about maintaining the interest of the potential customer, offering them relevant and valuable information about the product or service being offered. To do this, testimonials, success stories, comparisons or demonstrations can be used.
Desire : This is about creating the desire of the potential customer, highlighting the benefits and advantages that they will obtain by purchasing the product or service that is offered. To do this, offers, discounts, guarantees or bonuses can be used.
Action : This is about driving action from the potential customer, facilitating the purchasing process and eliminating any possible objections or doubts they may have. To do this, you can use calls to action, purchase buttons, contact forms or chatbots.

The AIDA model can be applied to both up sell and cross sell, adapting the message and channel to each phase and each type of offer.

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What is an upsell and a downsell?

Upselling is a sales technique that consists of offering the customer a product or service of higher quality or price than the one they have purchased or are about to purchase. The objective is to increase profit per sale and satisfy customer needs with a more complete solution.

For example, if a customer purchases a laptop, they may be offered an upsell of an extended warranty, an antivirus, a case, or a wireless mouse.

Downselling is a sales technique that consists of offering the customer a product or service of lower quality or price than the one they have rejected or are about to reject. The objective is to win back the customer who has been undecided or has abandoned the purchasing process, offering them a cheaper option or one adapted to their budget.

For example, if a customer abandons the shopping cart with a high-end laptop, you can send them an email offering a discount.

Examples of up sell and cross sell

Below, we show you some real examples of how to apply up sell and cross sell in different sectors:

Amazon : the e-commerce giant is one of the leaders in the use of up selling and cross selling. On its website, it offers the customer products similar or superior to the one they are viewing (up sell), as well as related or complementary products to the one they have added to the cart (cross sell). Additionally, use email to send personalized offers based on the customer's purchase history.
Netflix : the streaming platform uses up selling to offer the customer subscription plans with more benefits than the one they have contracted. For example, it offers you to go from a basic plan to a standard or premium plan, with more simultaneous screens, more image quality or more content available.
McDonald's : The fast food chain uses cross-selling to offer the customer additional products than the one they have ordered. For example, you offer a large drink for a little more money, an extra sauce, or a dessert. In this way, it increases the average order value and improves the customer experience.

Written by Moises Hamui Abadi : I am an entrepreneur, founding partner of Viceversa and SoyMacho. After leading several digital businesses and advising several other businesses; I decided to form MHA Consulting, a digital marketing consultancy dedicated to growing and enhancing digital businesses in more than 7 countries and generating more than 1,500 million pesos.