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now the Differences & Comparisons

Difference Between Upselling and Cross-

Selling
Last updated on February 3, 2020 by Surbhi S

Up
selling is the strategy of persuading your prospective customer to purchase a similar product with
higher specifications and features, rather than going with the original choice.

On the other hand, in cross-selling, the sales representative encourages the potential buyer to
make the initial purchase first, and once the customer is done with the selection, the representative
recommends a complementary or additional product to the buyer which adds to its value to the
customer.

Upselling and Cross-selling are the two very effective techniques of marketing wherein the sales
representative encourages the customer to buy more products or buy a better product. This not just
adds to the existing sales revenue but also provides value to the customers. Here in this article, we
are going to discuss the differences between cross-selling and upselling.

Content: Upselling Vs Cross-Selling

1. Comparison Chart
2. Definition
3. Key Differences
4. Conclusion

Comparison Chart
 BASIS FOR
UPSELLING CROSS-SELLING
COMPARISON

Meaning Upselling means to Cross-Selling is the

convince the buyer in recommendation of
purchasing the better additional product to be
version of a product purchased in combination
which has a higher with the main product to the
specification. existing customer.

What does it do? Trading up something Offers related products to

of better quality or customers to persuade them
price, of what is being to spend more.
demanded by the
customer.

Objective To increase the actual To increase the overall

value of the sale. value of the sale.

Involves Upgraded, Higher value Complementary, Related or

or an Add-on item. Connected Item.

Increases Average Bill Value Average Bill Value and

Average Ticket Size

Definition of Upselling
Upselling can be understood as a strategy of persuading customers to make a purchase of high end,
premium product coupled with some additional features, than the one they actually intended to
purchase, so as to increase the total sales value.

It can be said that in upselling the seller aims at selling the more profitable item to the customer or
presents them the newest or better version of an item, with the purpose of making a larger sale. The
technique is useful when the probability of buying it, is the highest.

It involves educating customers, communicating the benefits, highlighting differences and

presenting discounts, in order to attract them.

In upselling, the seller often compares the main product with that of the premium one so as to show
the additional features and specifications to the customer, that increases the price of the actual
purchase.
Example: You might have noticed that when you go to buy a handset, the salesperson shows you a
better version of it, and explains you its additional features which are not present in the handset
which you have planned to buy. This technique of selling is known as Upselling.

Definition of Cross-Selling
Cross-Selling is a selling method in which the seller aims at encouraging the customer by suggesting
to buy an additional product which is complementary or related to the main product based on
customers interest and purchase of one of the company’s products. It not just completes the set but
also helps in gaining maximum value from the original purchase.

The intent is to convince the customer to incur more by making him/her purchase extra items than
he/she has decided to buy initially. In this, the seller attempts to take advantage of “just in case”
outlook of the shoppers, so as to improve their shopping experience and also to earn the maximum
revenue from them.

In other words, cross-selling is recommending other relevant products which the customer can try.
For this, the seller logically identifies the best pair of product, which can possibly be sold. The perfect
example of cross-selling is the “frequently bought together” section of the Amazon and the combo
offers given by many retail outlets.

Example: Suppose you go to buy a laptop, the sales representative often tries to convince you to buy
a mouse with it. This is called as cross-selling.
Key Differences Between Upselling and Cross-Selling
The differences between upselling and cross-selling are discussed in an elaborated form below:

1. In upselling, the seller would emphasize on buying the better version of a product than the
one which the customer has decided to buy, so as to increase the sales revenue. On the other
hand, Cross-Selling is a selling technique which involves convincing the buyer to spend an
additional amount to buy complementary products which match their existing deal, so as to
increase the number of items sold, along with increasing the total sales value.
2. In upselling, the seller seeks to trade up a product of better quality or price, of what is being
demanded by the customer. As against, in cross-selling the seller offers related products to
customers to persuade them to spend more.
3. Upselling aims at increasing the actual value of sales, whereas in cross-selling the overall
value of sales is increased.
4. Upselling involves the selling of upgraded, higher value or an add-on item to the customers.
Conversely, the complementary, related or connected item is offered for sale in the case of
cross-selling.
5. Upselling increases average bill value. On the contrary, cross-selling increases both, average
bill value and average ticket size. Here, average bill value refers to the average purchase made
by a customer, and the average ticket size is the average sale per customer.

Conclusion
Upselling and Cross-selling is a great tool to increase the overall value of the deal, as well as it helps
in introducing a wide variety of products. However, in both the strategies the customers are
approached and convinced differently.

If we talk about upselling, the aim is to sell a superior, expensive, high-end product to the customer,
in spite of the product the customer has decided and demanded to buy, by communicating the
additional features. On the flip side, cross-selling is all about selling additional products to the
customers, which are related to the existing purchase.

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