How to Use Upselling and Cross-Selling to Increase Revenue

How to Use Upselling and Cross-Selling to Increase Revenue

Don’t leave money on the table. If you want to add revenue to your business, then start taking advantage of upselling and cross-selling.

Upselling and cross-selling are all about balance. Clients don’t want to feel misled, as can happen in upselling. Nor, do they want to lose focus on what brought them to you in the first place, through cross-selling.

So the key is encouraging clients to have an open mind about other products. You’re providing opportunities for services they likely need anyway. 

How to Upsell and Cross-Sell (and When to Do It)

Upselling is encouraging customers to buy more expensive options, upgrades, or add-ons to drive extra profits. Cross-selling is selling an extra product or service to a customer.

Both are effective techniques. They increase sales and encourage clients already converted to buy more. Learn how to master these techniques in this section.

How to Upsell and Cross-Sell (and When to Do It)
Zalora does an excellent job with cross-selling by recommending products you might like.

With upselling and cross-selling:

  • Cash flow becomes more predictable.
  • You know your clients better.
  • You can focus less time on acquiring new customers.

Upselling your digital services 

There are many upselling options for digital agencies. For example, you can offer premium versions of the same service you already supply. Content marketing firms can offer a basic package of four blogs per month or a premium of 12.

Industry example 

WithContent
This is exactly what WithContent offers its clients. You can start with individual blog posts at 600 SGD per post. Or they offer a basic plan of 4 posts per month at 2,100 SGD.

Upselling is a win-win for both clients and WithContent. Clients get a discount on more posts. WithContent gets more steady work and increases sales. Both the agency and the client deepen their relationship. This creates more opportunities for success.

Providing flexibility is another great way to upsell. Digital agencies tend to offer more “à la carte” services. This is where clients select different options like extending contract periods for a reduced fee. Or agencies can enable clients to pay for extra services in instalments.

Almost any stage of your sales cycle is a good time to try upselling. But common touchpoints include during an initial pitch and after a milestone.

Cross-selling your services

Digital agencies have so many opportunities to cross-sell. For example, if a client has hired you to design ad graphics, you could cross-sell them on a post-click landing page design service. Or, if you are building a client’s website, you could offer to write the content. 

There are many upselling and cross-selling techniques. But don’t go overboard. Recommend only what your client can use for their own success.

Limit upselling and cross-selling recommendations

Giving too many options to clients can be counterproductive and overwhelming. Even if you can design an entire website, don’t offer to do that right away.

If you’re hired to design a landing page, focus on that. Then point out how can help in other ways such as on other static pages or the blog.

A successful cross-sell begins with a solution to a client’s problem, so it’s best to keep things simple. 

You can say, “I’ve noticed you need an About Us page,” then offer to provide that service for them.

Make sure you have your rate handy and an explanation for what you charge.

The same goes for upsales. A few targeted recommendations can maximise your chance of a successful upsale. Limit yourself to three recommendations.

For example, if a client orders a domain name, ask if they need web hosting, domain privacy, or email hosting as well. These are essential services clients will need to get at some point. So it might as well be from you.

Get to know your clients

Get to know your clients
Artesian creates a custom quote for potential clients.

Thorough audience research helps upselling and cross-selling. Take time to review the websites, social media, and other information on your clients.

Use website analytics. You can track where your clients are coming from, how long they spent on your site, and what they’re interested in.

You can get fantastic insights into understanding what clients want, need, and prefer.  This will help you make solid upsell/cross-sell recommendations.

Always remember the 25% rule

The value of a cross-sell or upsell should never exceed 25% of the original order. 

As a digital agency, you should cross-sell your services. You can suggest a copywriting package to a client already using your web design services. But don’t exceed 25% of the original cost.

Industry example

Novatise rates

Singaporean firm Artesian designs a simple website starting at $2,000. This is between 5-10 pages including contact forms, homepage, and blog creation.

But this does not include content creation and blog maintenance — both of which they also provide starting at $500. This is a logical cross-service to sell as you need a blog to maximize the potential of your website. 

If you want to boost your sales, this is a logical approach to follow suit.

Upselling and cross-selling create a smoother, more stabilised, and much less frantic business.

You will form tighter, more lasting bonds with existing clients. And you do not have to spend so much time and energy finding new clients.

How to Bundle and Package Services

Corsiva Lab service packages
Corsiva Lab offers service packages for any budget.

Bundling items encourages upselling and cross-selling. It allows users to see how your different products and services fit together. 

Corsiva Lab is an excellent example of this. They sell templates, logos, and plugins together in a bundle. This is more convenient for users.

It also allows you to boost revenue. Clients can see one option or see how everything fits together in a package.

Digital agencies are in a great position to use packages. Generally, a bundle consisting of three services is a good number. It’s easy enough for clients to understanding while providing an increase in revenue for you.

💡Pro-tip: Consider bundling services like pay-per-click ads, on-page and off-page SEO, and social media management. They are easy to fit together and make sense to the client.

The most important thing is deciding what to include in packages. Many firms create plans based on client types. They’ll have plans for ecommerce, service-oriented businesses, and other differentiated packages. This makes it easier for clients to choose what’s best for their needs.

Check your analytics as well. See what sells and bundle popular items together. Don’t deliberately separate popular services into packages. Clients don’t like that and will turn to your competitors.

Online Tools to Use for Marketing and Sales

You have more tools than ever to improve your cross-selling and upselling. Take advantage of these software to gather valuable data that’ll improve your revenue. 

Intelligent tools you should use include: 

  • Adobe Marketing Cloud — This helps create instant presentations for visitors offering personalised recommendations for buying extra items.
  • Conductrics —An optimisation software that uses machine learning to comprehend visitor behaviour. As a result, it serves the most profitable recommendations to clients.
  • Evergage — This software suite focuses on the optimisation of eCommerce websites.
  • Keap (formerly Infusionsoft) — Organisational and logistics services for small and medium businesses.
  • Marketo — A full-featured CRM that allows personalised upselling. It includes personalised email, ad spend optimisation, as well as many other features.
  • Optimove — It fosters intelligent relationships that maximise every client’s value, providing:
    • Predictive Client Modeling
    • Real-time Hypertargeting
    • Multi-Channel Campaign Automation
    • Self-Optimising Personalisation

You can also consider using B2B-specific sales tools, such as:

  • Pepperi — unifies online and in-person B2B Sales in a trackable format
  • Artesian — a powerful AI-driven client engagement service

Test yourself on what you have learned

  • What is the difference between upselling and cross-selling?
  • What are the benefits of upselling and cross-selling?
  • Why should you not offer clients too many choices when upselling or cross-selling?
  • What is bundling or packaging?
  • How can bundling help your bottom line?
  • What is the value of knowing your clients when it comes to upselling and cross-selling?
  • What is the 25% rule?
  • Which of the intelligent tools appeal to you for helping you upsell and cross-sell?

READ: How to Gain Loyal Clients and Reduce Churn Rate