Upselling and Cross-selling: 9 Strategies for the Win

Upselling? Cross-selling? It's all selling, right? Not entirely. I've seen statistics that boast a 60-70% higher probability of selling to a current customer than a new customer (prospects weigh in at 5-20%). That's a huge gap--and one that shouldn't be taken lightly. And yet, we speak of net new customers as the Holy Grail of a business all while forgetting our easiest wins: existing customers. It ultimately boils down to a term that's become a capitalized acronym (you know it's important when that happens) in marketing and sales: CLV, or, Customer Lifetime Value. First, let's define some terms. 

Upselling: This sales technique encourages customers to purchase a more expensive model/service within the same product/service family. Think of the leg room upgrades you can purchase on a plane. Or upgrading your new car's seats from fabric to leather. Those are examples of upselling a customer. Your customer has already committed to purchasing a product--now it's your turn to enhance the customer's experience with an upgrade. Win-win.

Cross-selling: This sales strategy attempts to entice customers with similar and/or complimentary products/services. I often think of the countless times I've picked up and purchased something while waiting in line to pay. Often, these items are strategically placed to encourage a spur of the moment purchase. Sephora does it well with their "To-Go" beauty grabs as you wait in line to pay and these travel sizes are often significantly more expensive ($/oz). The genius queue at a brick and mortar store is similar to Amazon's "Frequently Bought Together" section at checkout--a technique that has reportedly contributed to 35% of their revenue. 

I've defined these terms as selling strategies at the point of purchase. I'm working with the assumption that once a customer has purchased, he/she has converted and each new sale is a potential for up/cross sell. CLV, defined as the value of a customer during his/her entire relationship with a company, sees a customer's worth in retention and long-term profitability. The sales team must be encouraged to view customers as lifetime users, not onetime deals. With that in mind, here's a non-exhaustive list of tips to promote CLV and increase sales through upsells/cross-sells:

 1. Make your business personal

Keep in touch with your customers through 1:1 sales emails/calls, email marketing campaigns, user conferences/forums and social media. Make sure you are top of mind in your customer's busy life. Send out newsletters appropriate to your industry and target your customer's preferences. Even if I delete 99% of the emails I receive on a daily basis, there are always a few that catch my attention and result in a conversion. Reuse your content! Just because it didn't work today (the reasons are endless) doesn't mean it won't work tomorrow.

 2. Inform your customers

Customers need to know what you’re selling. I'm often shocked and amazed by how poorly products and services are marketed. I think to myself "Why wasn't I told about this?!--I would've purchased in a heartbeat!" And while that desire to purchase something is a sign of success for your company, it's a failure on the part of the marketing and sales team in accurately promoting the product or service. A customer should never have to feel left out of a up/cross sell. Make the decision to purchase additional products/services an easy one with an informed sales/marketing team. 

3. And keep reminding them

Never assume even your best customers know everything you sell. Most of your customers are not power users. Customer outreach should be ongoing and consistent. Persist but don't pressure. 

 4. Crowdsource your products/services

Your customers are not only your best advocates, they are also your best source of truth. User reviews and customer service logs reveal a lot about your customer’s pain points. There may be instances of a customer wishing a company had product "X" only to have a sales person contact him/her for an instant sale. Also, frustration is the mother of innovation. Sometimes feedback elicits the best form of change.

 5. Incentives for referrals

Happy customers refer hopeful customers. Incentivize further with a bonus. I've seen this through email and phone number referrals. And while word of mouth is difficult to measure, it's undeniably a great tool to increase sales. User forums are a great way to encourage co-mingling of your customers. Some of your best referrals are customers motivating other customers to purchase.

6. Education your customers

Don’t let customers stagnate. Keep them actively using your product/service with on-site training sessions, documentation, webinars, FAQs, How-To guides and industry news. About a year ago, I signed up for Care.com and while I haven't used them since (I haven't needed the service), I've received almost weekly emails on blog articles, nanny insights, pricing discounts, etc. I can guarantee you that when I do need the service again, I will turn to them. And I have passed on the good word: I've recommended them without hesitation several times. Care.com has stayed top of mind without being annoying.

7.  Show them how they win

Your customers may not be fully aware of how a up/cross sell would benefit them. Demonstrate to your customers how other customers are using the product/service and how they've ultimately benefited. Customer testimonials, case studies, reference calls and reviews all help to encourage the sale. 

8. Know your customer

I harp on this one a lot: Know thy audience. Build deeper relationships with your customers by learning about their use case. How would they profit/benefit from an up/cross sell? Make sure your up/cross sells are relevant and useful to your customer. Make sure you build buyer personas and customer personas. Marketing is best when it's at its most personal level. 

9. Time your pitch

Part of knowing your customer is understanding when they’d be most open to purchasing. Obviously Christmas is a clear win for retailers. And while January sees a slump in sales, jewelry stores, for example, have a clear window to promote post-Christmas/pre-Valentine's Day gifts. A perfectly timed pitch can only occur with a thorough knowledge of your customers.