Before we talk about the differences between upsell, downsell, & cross-sell, you may want to check out our digital marketing services:
Many marketers swear that real profits are not in the first sale, but rather in the up-sell, cross-sell, and down-sell. In fact, these techniques are as old as marketing itself, and most mainstream businesses employ them one way or another. But do you know what each of these terms mean? No? Well, don’t worry. I’ll explain everything below.
1. What is Upsell?
This technique involves persuading the customer to upgrade or buy a more expensive product instead of the one they originally want to purchase, increasing the overall profit of the sale.
- A warranty upgrade like Apple Care.
- A salesperson suggesting a higher variant of a car.
- McDonald’s employee asking to upgrade your drink.
2. What is Cross-sell?
This technique is similar to up-selling. Cross-selling involves selling additional products or services to the customer that may or may not be related to the first one the purchased from one. Usually, this technique is employed to increase profits, but it can also be used to solidify the relationship with the client.
- We sell web design services. We offer SEO services as a complementary service.
- Car insurance companies offering life insurance.
- A salesperson selling a laptop offering you other peripherals.
3. What is Downsell?
This technique is used when the customer, for some reason, decides to back down from the purchase. In this case, you can offer him a cheaper product, which has a higher chance of being accepted. The goal here is to acquire a customer, even if you will not profit as much as possible right away.
Example: Car dealers down-sell all the time. If you enter a dealership looking for a BMW and get scared with the price, the salesman will certainly bring up many other options that cost a lot less. That is down-selling.