Group 10: UP-SELLING and CROSS-SELLING FOR BUSINESS DEVELOPMENT

UP-SELLING and CROSS-SELLING FOR BUSINESS DEVELOPMENT

You will get answers to all of these questions.

What is Up-selling and Cross-selling?

 
What are some examples of this around you, in every day life?

 
How to integrate Up-selling and Cross-selling into your business development program?

 
How to utilize a team approach to extend your effectiveness and achieve more results?

I.
Up-selling and Cross-selling are similar but not the same.

They do compliment each other especially for business development.

Up-selling is simply attempting to get a buyer to purchase more than they originally intended to purchase.

Cross-selling has two meanings or approaches.

 
It is attempting to get a buyer to purchase other services and products not related to their original intent to buy.

 
It is also attempting to find others related to the buyer who may have needs that you could sell some products or service to.

Example of Up-selling:
You are in a food store to buy a box of cereal and you are at the check out counter with your one box of cereal. The check out clerk informs you that there is a special promotion going on where you buy one box and then you get the second box at 50% off. You the run back to the cereal isle and grab a second box for the 50% off.
You just experienced Up-selling.
You purchased more than you originally intended to.

Example of Cross-selling:
You are in a food store to buy one box of cereal and you are at the check out counter with it.
The check out clerk asks you about when you had your last vacation and if you would like to have one in the next 12 months at 50% off of a low price plus pay later.
You express interest and wonder how this could be in a food store
The clerk walks you over to a special table at the front of the store and introduces you to a travel counselor to sign you up for your next bargain vacation.
This is a type of Cross-selling in that they approached you with a totally different type of product or service that is not normally associated with a food store.
You were crossed over to a totally different type of product or service.

Example of another version of Cross selling:
You are in a food store to buy a box of cereal and you are back at the check out counter with the same check out clerk.
The check out clerk asks if you have to travel to a work place every morning.
You reply “yes, I work like most people do.”
The clerk asks if your place of work has a kitchen or cafeteria area where they provide snacks or beverages of some type type.
You say “yes”
The clerks says that if you fill out a short form that gives your work’s name, address and key contact person for purchasing the snacks and beverages,
a representative from the store would visit the work place to offer them 40% off all snacks and beverages if the store provides them the products.
This of course is a great savings for the company.
For filling out such information, you will personally get 20% off today’s grocery bill and 20% off of your next 4 grocery bills over the next month.
You gladly fill out the information to get the discount and the company where you work may save a lot of money if they decide to buy from the store.
This is a form of cross selling.
They have just crossed over from you to your place of work to sell products and services.

II.
You actually observe or experience both of these business development strategies regularly.

Visiting stores and reading the newspapers are fairly common situations to encounter
Up-selling and Cross-selling.

Look at the automotive tires advertisements.
Buy 3 and get a 4th for free.
Many people intend to purchase only 2 tires but the store is Up-selling people to 3 tires and the customers get the 4th tire for free if they do buy the 3rd.

Your home owner’s insurance agent offers you a 10% discount if you also place your automobiles insurance with the agency.
Yes, this is Up-selling.

During Christmas you see shirts packaged with a tie and holiday ribbon with bow is around them.
This is creative packaging and merchandising to Up-sell from one item to two.

Your insurance agent offers you an additional 5% discount on top of your original discount if you refer a friend or neighbor to them for a quote and that person purchases the insurance.
This is Cross-selling because they crossed over from you to your friends and neighbors.

When you go into a store to purchase products from one department and they give you a discount coupon for purchases in another department; this is Cross-selling for other departments.

Ever go to a shoe store and they have buy 1 pair and the second pair is or 50% off.
You purchase the second pair even though you did not originally intend to purchase two pairs.
Yes, this is Up-selling.

 
How about buy one pair of shoes and get sox or handbags for 50% off.
Yes, this is Up-selling in the sense of getting you to purchase more but it is cross-selling in the sense that they crossed you over to purchase different products.

Ever go into a store or service center where they give you special discount coupons to some other business.
Then when you went to that other business they had discount coupons to the other business that you just came from.
This is obviously a reciprocating business arrangement between the two different businesses.
They are Cross-selling for each other (whether they are owned by the same people or not).
You are being cross over to another business to purchase products or services..
You get a discount and they both get new customers.

From these examples you should be able to see how Up-selling and Cross-selling can contribute significantly to business development plus sales growth.

You now should start to understand how these same sales strategies and approaches can be utilized by any business whether products or services to grow business.

III.
Integrating these two fundamental business development approaches or strategies of
Up-selling and Cross-selling is a function of an organized business development plan and ‘out of the box thinking’.

It should be obvious by now that these two approaches are certainly critical components to a successful business development plan.

They can be accomplished via account reviews, utilizing printed literature with a check list of what a business has to offer, strategic selling & marketing, creative merchandising and packaging, or strategic partnering relationships.

In this website offering, there is a library or section on business development for attorneys and the legal profession.

 
Legal service offering has tremendous business development opportunities utilizing Cross-selling and Up-selling.

 
One can promote more of an attorney or firm’s service to business clients via client company’s multiple departments and maybe even to their employees.

 
The potential is endless if one uses some creativity and ‘out of the box thinking.’

All business have the same potential.

Up-selling and Cross-selling must be part of every affective business development program.

If you have skilled, experienced, trained individuals assigned to the critical business development tasks including Up-selling and Cross-selling, they will be able to integrate these into a successful business development program.

IV.
Team work, effort, and coordination are critical to achieve significant positive results from utilizing Up-selling and Cross-selling in your business development plan.

This will take the coordination and dedication of internal staff, strategic resources, and strategic business associates.

Strategic business alliances will become critical points for success.

When anyone is coordinating such strategic alliances and cooperation ‘egos are left outside the building’ so to speak.

Alliances are critical to make all of this work and everyone must benefit from this, as well.

A Win –Win scenario and approach are what will drive such alliances and the results of the Up-selling and Cross-selling strategies.

This library or subject group is intended to cover some fundamentals and the spirit of the subject; and not to cover all details which could take far more time.

If one has put together a team of contributing trained, experienced, skilled business development professionals to launch a business development program, they will fill in all of the important details.

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