Five ways to make more revenue by cross-selling and upselling

Want to increase your sales? You might not need a new TikTok series or email outreach campaign – start by selling more to existing customers.

This blog post shares tips on how to upsell and cross-sell, so you can reduce marketing costs, create brand advocates and make more money.

Understanding cross-selling and upselling

Cross-selling and upselling are two ways to increase the revenue you generate from customers.

Cross-selling is about helping customers get more value by showing them items that naturally go together, explains Closers Ace founder Tom Luke:

“The most important part of this is the products you are adding must be complementary. They have to somehow enhance that experience.”

We’ve all been a target – hardly anyone goes to McDonald’s and buys a burger, most of us get chips and a Coke. When you start to think about it, you can see it everywhere from car washes to corporate sponsorship.

Upselling is encouraging customers to buy a more expensive option. The goal is to increase your average order value and overall sales, Tom says.

“For example, if you're looking at a smartphone, a salesperson might try to upsell you to a better model.”

Cross-selling and upselling benefits

Small businesses have lots to gain from proactively cross-selling and upselling customers:

1. increase average order value

2. improve retention

3. enhance efficiency

4. get referrals

5. generate useful feedback

Developing the right mindset

It’s important to remember that the goal of cross-selling and upselling is to provide more value to your customers.

Yes, you want to earn more revenue. But the key to cross-selling and upselling successfully is to put your customers first.

If you want practical tips on how to improve your approach, we recently wrote about becoming a more confident salesperson.

1. Improve your purchasing journey

Go through the interactions your business has with customers to identify opportunities for cross-selling and upselling:

• promote bundle deals that create a fear of missing out

• segment your audience, so you can identify relevant products

• train your team to make helpful suggestions

• reward loyal customers by offering them deals at the right moment

• ask for feedback, so you can identify opportunities to promote products

• build an email newsletter list to keep customers up to date on what you offer

• inspire loyalty through personalised marketing

• share helpful and personalised content

• look at sales data to see what items are commonly purchased together

Digging into Customer Lifetime Value (CLV) – the total people spend with your company – can be eye opening. If you understand where your high-value customers come from, you can adjust your marketing accordingly.

2. Develop your sales process

Tom has developed a four-step framework to increase the chances of cross-selling and upselling customers during a sales process:

1. Active listening and qualification: Understand your customers’ goals, preferences and pain points.

2. Offer relevant suggestions: Present one or two complementary or upgraded options.

3. Showcase benefits: Use case studies and storytelling to help customers visualise what the improved outcome will feel like.

4. Close with confidence: Believe in your solution and show genuine enthusiasm for how it helps your customer.

3. Exceed customer expectations

Great customer service creates opportunities for cross-selling and upselling.

Use your sales pitch as a blueprint

Capture your prospect’s goals in the initial call and repeat them during the sales process and after the deal is closed.

Go the extra mile to help your client succeed in overcoming their challenges. Knowing you are committed to their success gives them a reason to stick around.

Step up your customer support

A little extra support to get your clients off to a great start can go a long way.

4. Get feedback from satisfied clients

Customer feedback creates opportunities to improve their experience and, if they’re having a positive experience, there may be a chance to upsell.

Depending on what you sell, that could mean setting a reminder, using email automation or going back to someone’s table to check they’re happy with the food.

If the experience has been really positive, you can ask for referrals, testimonials or even get people to post about on social media.

5. Master the timing

Upselling and cross-selling feel natural when you give people the right offer at the right time:

1. Understand your customers: What’s going to make the biggest difference?

2. Pick the perfect product: What add on will enhance their experience?

3. Make it easy to add extras: Where is the best place to show them options?

4. Look at the data: What do people buy and when?

The overall goal is to create a positive experience for your customers. By telling them about complementary products or more expensive options, you increase the value you provide.

Relevant resources

• Lunch and Learn: How to master cross-selling and upselling

• How to create a sales strategy for your small business