Reasons to Upsell and Cross-Sell

Upselling is essential for businesses, but how exactly? Here are reasons that both you and your customers would want upselling and cross-selling:

Increases Profits

It is no secret that a customer that buys more means that your company will make more money. Growth for your business does not mean simply retaining the customers that you have: it is necessary that you continue to grow your wallet allocation for the current customers you have.

The great untapped market in your business might be your actual customers. Once you have gained your customer’s trust, there is still an incredible amount of investments they could be making with you if you use upselling and cross-selling to your advantage.

Increases Customer Loyalty

When businesses refer to upselling, too often what comes to mind is greasy car salesmen offering services and products that customers do need to weasel them out of a few dollars. Though, this could not be further from the truth. The point of upselling is to give the customer all their options so they can make a knowledgeable choice. It shows customers that you care and expect their needs.

In fact, upselling and cross-selling is closely-related to customer satisfaction. They develop loyalty for the company that they feel looks out for their financial well-being. Customer-loyalty can be a problem in the sales industry: it is common for customers to lack engagement and leave quickly. Any action that businesses can take to increase loyalty will help minimize the costs of losing customers, especially new customers.

Not only does customer satisfaction mean a reduction in churn rates, but they also offer the best opportunity for free marketing. In the age of information, there are few people that will trust their business to a company without checking reviews on it first. Happy customers are the best form of advertisement that you cannot buy.

Increase in ROI

Upselling and cross-selling to your customers allow you to see a profit quickly and receive a better return on your investment. You already did the hard work of marketing, finding and selling successfully to your customer; your business would be wise to get as much from the interaction as possible.

You leave money on the table when you neglect upselling and cross-selling. Offer customers products that are relevant to what they are looking to get as much of a return as possible.

Increases Customer Lifetime Value

Not only will upselling or cross-selling bring in a greater initial profit, but the overall value of the customer over the course of their lifetime will also be greater.

Not only will you increase their lifetime value by increasing the amount they buy, but by increasing their loyalty. You will see much more from a customer that stays loyal to you. Again, the increase in customer loyalty will pay off over the long run.

Balances Growth Between New and Existing Customers

Research has shown that increasing customer retention by as little as 5% increases profits anywhere from 25% to 95%. Maintaining a balance, then, between the new customers and the ones that you maintain, is essential to the survival of your company.

Maintain a healthy ratio of new to existing customers to help to ensure that your business is making a profit. While gaining new clientele is a healthy goal, also keep in mind ways to keep the clients. One way to do this is through upselling and cross-selling. Customers who feel that their company continues to look after their needs by offering relevant and helpful products and services will be far more likely to stay.

Offers Convenience and Flexibility for Customers

The benefits of upselling and cross-selling are not just for businesses. In fact, it works so well for businesses because it works well for customers too. Many customers do not want to shop around when they need a certain product or service. By offering them more choices or relevant add-ons, they do not have to take a risk with a new company to get what they need.

Most customers will stay with what they like if they know what is available. Since you have established trust with the customer, you can have the first shot of their business by telling them about the related products and services you offer. When you upsell or cross-sell to a customer, you give them the convenience of staying with you and the flexibility to choose what they need.