The up-selling is a marketing technique that aims to get the user to purchase a more expensive and higher quality product or service, compared to what they had initially set out to buy.
Characteristics and examples of up-selling
A classic example of up-selling is the trio of online offers (for instance, software or a subscription with Little, Medium, Big memberships) that allow you to take advantage of certain services.
The first one, the basic product, is what the user was looking for, perhaps through a search on Google.
At this point, however, the company proposes other more expensive solutions which are nonetheless quite advantageous and qualitatively superior: additional services, dedicated support, eliminated limitations.
In short, a classic up-selling action involves increasing the company's profit margin.
Difference between up-selling and cross-selling
Both terms refer to a marketing technique but if up-selling tends to marginally increase the quality of the service or product and consequently the price, cross-selling, on the other hand, aims to expand the quantity of product units sold.
Accessories for a certain product are a clear example; we discussed this in the case of the bait-and-switch product, and specifically, in the description of complementary products.
A cross-selling technique is to complete an offer with other products related to the main one.
So to recap: up-selling offers a choice between one product and another, while cross-selling suggests expanding the purchase with additional products.
The real benefits of up-selling
We mentioned that the user will have landed on the destination page from a Google search or through a more complex funnel (a sort of guided path by the company).
This means that our potential buyer is predisposed to making a purchase.
The company's suggestion of a qualitatively superior product to the initial one could really be seen in a good light since, perhaps, they will consider a higher expenditure also because, usually, it will be more advantageous.
Not only that, with a slightly higher outlay immediately, the customer will bind themselves to you for a longer period of time (the most advantageous subscriptions are precisely those annual ones, for example).
This will also allow for a substantial increase in customer loyalty towards the brand itself.
Cross-selling also has significant benefits.
Indeed, if I am choosing a razor, I might really need a monthly subscription to blades and/or aftershave.
In both cases, the company is truly helping me to fulfill my need!
Those who engage in up-selling and cross-selling will indeed earn marginally more either on the one-time purchase of the most complete package or on the sale of more units of product.
A great way to leverage cross-selling is, for example, to encourage multiple purchases with the lure of free shipping, which kicks in after a certain spending threshold is reached.
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