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The value of up-selling & cross selling.

June 13, 2011 1 Comment »

The value of up-selling & cross selling.

To increase revenue and margins of an order by selling products / services at higher prices i.e. up-selling or by selling add-on products and accessories, a tactic also known as cross selling, share the idea of needing to prove our consumers that there is something in it for them. We must show them increased added value.

Value is the term that expresses the concept of worth in general. For example, value would be a high pay back for a small expense, also discussed in terms of ROI (Return on Investment). Payback is the tangible return delivered by the benefits of your products and services. The greater the value to your customers, the greater the payback.

Moving on, the formula for calculating value is the benefit minus the cost of achieving or acquiring the benefit, i.e. VALUE = BENEFIT – COST. Hence, it is important that we use meticulous questioning techniques to uncover as many needs as possible, for which we can offer, benefit oriented solutions. We need to be able to explain & sell benefits. The more needs we can uncover, the more benefits we can deliver, the more benefits the greater the payback, the greater the payback the higher the value, the higher the value, the better the chance to up sell & cross sell.

Proving value, we can use the funnel or focus questioning technique which will uncover needs. However, it is one thing to uncover the need it is another to prove that there is adequate pay back & value in fulfilling the needs.

Having uncovered the needs we must probe & find out as much as we can about those needs & the implications to the consumer if they are not met or fulfilled.

To be continued…




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