It can be very difficult to convince customers to open up their wallets and make that first purchase on your website, or even to request an initial consultation with a salesperson. So, once you have them there and ready to buy, take advantage of the moment with an online marketing strategy aimed at up-selling or cross-selling.
How Cross-Selling Works
Let’s use technology giant Apple as an example. Say a prospect is ready to buy an Apple Watch - they've researched it, have it in the cart, and are ready to click 'buy now'. This is the perfect time to offer them an upgrade from the sport band to a leather loop band.
That's the art of cross-selling: using metrics from a website to determine and gauge a prospect's interest level, and then offer them related products they're more willing to purchase as a result of their interest.
By suggesting related products, offers, or information on your own site, you can cross-sell and increase your sales, too. This is part of a closed-loop marketing process, as well; you first see what products site visitors are looking for, and then you can test various cross-selling opportunities that work to up-sell those visitors.
When Up-Selling Works
I'll use Apple as an example again. This time, a prospect has their eye on a new Macbook Pro. They're settling on the 13-inch, non-retina display model and have it in their cart. At this time, it's the perfect opportunity for an up-sell to the 13-inch with retina display, an increase in price. The way to go about the up-sell online is to promote the increase in what the prospect is getting for the slight increase in dollars they're paying, as well as promotion of their payment plan, because cost could be a factor.
That's the art of up-selling: using data and website metrics to determine what the prospect has researched and is looking for, and then offer them increased value with a higher model for a modest price increase while they're in the process of purchasing.
By suggesting the increased value of purchasing a higher-cost option while they're on your site, you're more likely to increase the sales opportunity while also adding value to the prospect's experience.
Up-selling & Cross-selling in the Inbound Era
Up-sales and cross-sales are key to a brand's sales growth. Studies show that your chances of selling successfully to a new customer are between 5% and 20%. But, those who sell to existing customers have a staggering 60% to 70% chance of success. Up-selling is, in general, about 20 times more likely to succeed than cross-selling in most situations. To win in either scenario, you need to know what your customer wants, as well as who they are and what outside influences effect their buying process.
Just as inbound marketing can bring in new prospects, the process can also effectively nurture a relationship to bring in further sales. Your task of delighting the customer only begins with the first sale. Create a customer home base on your blog that provides tips to help your customers get the most out of your products and improve their lives. Anticipate their needs and help them find solutions.
On your product pages, you have many cross-sale as well as up-sale opportunities. Offer related products based on what other users have purchased in the past. Make the different product values - what the prospect experiences with your product - clear. You can also offer bundled deals to help save customers money on products that they might choose to buy together.
When Is the Time to Up-sell or Cross-sell?
The timing of your communication with clients matters as much as the relevance of the content. You are more likely to get an up-sell if you reach the customer in the right frame of mind. The easiest time to successfully up-sell is when the customer reaches a milestone. Going back to the Apple example, a customer who is about to purchase the latest iPhone model is ripe to increase its storage capacity if they perceive the value is there - so offer the up-sell. A person who is ready to make a purchase of that latest iPhone is likely to be looking for accessories to outfit it, as well - so make the cross-sale.
And, remember: the number one reason sales opportunities fail is because we don't ask for the sale. Delight customers, have the knowledge to offer value at the right time, identify those who are ready to buy again, and you can win their business.