According to HubSpot’s 2022 Sales Strategy Report, the third most popular goal for sales professionals in 2022 is prioritizing relationships with existing customers over new ones, and they’ll do so through upselling and cross-selling.
In this post, we’ll discuss everything you need to know about:
- Upselling, Cross-Selling, and Down-Selling: What Reps are Doing
- How are reps upselling?
- How are reps cross-selling?
- How are reps down-selling?
- How do upselling and cross-selling impact revenue?
Upselling, Cross-Selling, and Down-Selling: What Reps are Doing
According to HubSpot’s 2022 Sales Strategy Report, the third sales goal for sales professionals in 2022 is prioritizing relationships with existing customers over new ones through upselling and cross-selling.
When it comes to both strategies, 88% of sales professionals upsell, 79% cross-sell, and only 27% down-sell. So, it might be helpful to have a refresher on the terms.
- Upselling encourages purchasing an upgrade, enhancement, or premium option that would make a customer's purchase more expensive. An example is offering a customer to add cheese to their burger.
- Cross-selling encourages purchasing an additional product or service that would supplement a customer's primary product or purchase of interest. The most basic example is encouraging customers to get a milkshake with their burger.
- Down-selling is offering prospects an alternative that is lower priced and more in line with their budget.
How are reps upselling?
An essential factor of upselling is ensuring you get your timing right. For example, upselling a customer on day three post-purchase might not be as effective as upselling a customer with a history of success and achieving their goals with your product.
As a result, the best times to upsell are after a customer has achieved their goals, after you’ve identified an issue or need that you know your business can solve, and when setting goals with the customer.
When reps upsell, the most effective strategies are:
- Understanding the needs and goals of customers (here are 50 key questions to ask)
- Establishing trust and rapport (the most important strategies are being attentive and staying engaged, staying positive, and finding common ground).
- Offering discounts and promotions like bundling or referral premiums (which offer the most high-quality leads)
How are reps cross-selling?
When reps cross-sell, they’re most effective when they:
- Offer discounts/promotions
- Recommend related or complementary products
- Email follow-ups (here are some email follow-up templates you can leverage)
Upselling and cross-selling do have crossover when it comes to discounts and promotions, and the most effective types are bundling a suite of products, customer loyalty programs, extended payment terms, extended use terms, and free shipping.
How are reps down-selling?
It’s important to note that leverage down-selling is the most relevant when you’re absolutely sure that a prospect isn’t going to buy the product or service at the price point you’re offering.
When reps are at the right moment to down-sell, they’re most effective when they recommend different products, communicate secondary offers on exit intent, and reduce the scope of client goals.
How do cross-selling and upselling impact revenue?
72% of sales professionals who upsell say that 1-30% of their company's revenue comes from up-selling.
In comparison, 74% of those who cross-sell say 1-30% of their company revenue comes from the strategy.
Over to You
Sales goals and sales strategies change year to year and business to business.
Upselling and cross-selling remain relatively common, and if your business’ goal is prioritizing existing customers, they will help you do exactly that.