Up-Selling & Cross-Selling: Why & How You Should Be Doing It?

Category: Business

Cross selling and upselling are two sales strategies that are used to increase total sales. Cross selling refers to a technique that encourages the customer to buy additional products or services related to the original product. Upselling, on the other hand, is the practice of persuading a customer to purchase a higher-priced product or service than what they initially planned to buy. 1. According to McKinsey, cross-selling can increase sales by 20% and profits by 30%. 2.Sumo estimates that upselling increases revenue by 10-30% on average. On average, 70-95% of revenue comes from upsells and renewals (for companies that offer them). The cost of up-selling is 68% less than acquiring a new customer. Cross-selling is an effective tactic to increase the Average Order Value (AOV) of your sales and the average number of items purchased in an order.