Learn how to increase sales using upselling and cross selling

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You may have heard that companies spend 5 to 7 times more to acquire a new customer than to sell and retain their current customers. The phrase is so well known that it may seem cliché. But the study was written by one of the fathers of modern marketing, Philip Kotler, and shows how companies fail when trying to increase sales with new customers alone . That’s why upselling and cross selling are so important! If you want to discover how to increase the average ticket for each purchase, improve the return on sellers' efforts and increase sales, keep reading this post! What is upselling? It is an incremental sales strategy.

In it, you offer something similar to what the customer is willing to buy, but with superior quality, benefits or brand . For example, if the customer chooses to buy soybean oil, the salesperson could offer canola oil highlighting its health benefits or could suggest ws data purchasing olive oil. Another example would be a person buying a 1.6 car instead of the same 1.0 model. In upselling, the buyer leaves the chosen product to accept the seller's suggestion. He does this because he agrees that that is the best option. What is cross selling? Cross selling is an additional sales strategy, that is, the customer buys the item they selected and is convinced to take a complementary product.



This occurs when the person is convinced to add air conditioning or extended insurance to the chosen vehicle. Another example would be a person being induced to buy disposable plates and cutlery, while choosing plastic cups for their party. In this case, there is no abandonment of one or another product, just the addition. How to increase sales using cross selling and upselling? To make these strategies effective, your customers' purchasing profile needs to be well known and some steps are essential: 1. Analyze sales history What products do people usually buy together? This is the answer that needs to be obtained at this stage.

Large supermarket chains change the layout of their stores to facilitate this additional sale. It is based on this that diapers are no longer close to personal hygiene products and are now visible to people browsing the beer section. The reason is that the analysis indicated that it is men who usually buy diapers and, most of the time, also put beers in their carts. Therefore, analyze the sales history and find out which items were purchased together. Then, improve the arrangement of merchandise to subtly encourage purchases! 2. Use Market Intelligence software The consumer profile is constantly changing with the introduction of new brands, products, technologies or even consumption habits.