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Cross-Selling: What It Is and How It Differs from Upselling

You probably remember that iconic question McDonald’s employees used to ask: “Would you like fries with that?”It’s more than just a punchline for someone expecting too much – it’s actually a perfect example of cross-selling. That’s the marketing strategy of encouraging customers to buy an additional product or service during a single transaction.

But why does this technique matter so much, and why shouldn’t you overlook it when building your own marketing strategy?

What is Cross-Selling?

Cross-selling (also known as complementary or supplementary selling) is a strategy that taps into the emotions customers experience while shopping. Imagine you’ve just bought a laptop you’ve dreamed of owning for years. You’re excited and can’t wait to start using it and you probably want to protect your new investment from damage. If the seller at checkout offers you a laptop bag while explaining its benefits, there’s a good chance you’ll go for it. That’s cross-selling in action.

Of course, the key to making this work is pairing products in a way that feels natural, so customers instantly understand the connection between them.

Cross-Selling Examples:

  • Pet store. When a customer buys a large can of pet food, consider offering a reusable lid to make storage easier.
  • Electronics store. Most customers who buy a smartphone or tablet end up purchasing a protective case shortly after. To make the most of this, stock cases that fit the specific device models you carry
  • Beauty store. For face masks, suggest an application brush to go with them. And when someone buys shampoo, recommend a matching conditioner from the same line.
  • Clothing store. It has plenty of cross-selling opportunities. Suggest pants that pair well with a blouse, or add-on items like small jewelry pieces or sunglasses to complete the look.
  • Grocery store. Follow the lead of popular franchise chains. If you’re selling online, suggest items from the same category. For example, recommend rice when a customer adds pasta to their cart.

Cross-Selling in Physical vs. Online Stores

No doubt that online stores have more room for cross-selling. You can easily automate the process by showing customers suggested items right before they check out. The key is keeping those suggestions relevant. If someone’s buying bathroom tiles, they probably won’t be interested in a kitchen faucet. Instead, offer smaller things like mirrors, shelves, or decorative pieces. Low-cost add-ons work best – people are more likely to grab them on impulse.

That said, physical stores can still make cross-selling work. It just depends more on the salesperson. A quick suggestion while helping a customer or at the register can go a long way

The Difference Between Cross-Selling and Upselling?

Upselling is a completely different approach from cross-selling. The goal here is to convince the customer to buy a more expensive item or upgrade. Let’s say you’re looking for a new phone. You’re not super familiar with the latest models, but you want something decent without breaking the bank. The salesperson might gently guide you toward a slightly pricier model than the one you first noticed.
Funny enough, McDonald’s does this too. Ever been asked if you want to “supersize” your meal? That’s upselling in a nutshell.

Downselling – The Opposite of Upselling

There’s one more technique worth mentioning: downselling. It’s all about holding onto customers who aren’t interested in the premium options.

In physical stores, downselling happens naturally. If a salesperson realizes a product is out of someone’s price range, they can point them toward something more affordable. It won’t bring in the biggest profit, but it often saves the sale.

Downselling works online too. One smart way is to offer customization options. Take gift baskets, for example. You can sell pre-made ones, but you can also let customers build their own using an online tool. That way, they stay within their budget, and you still keep control over what goes into the cart.

FAQ

What is cross-selling?

Cross-selling is when a business suggests related or complementary products to a customer who’s already making a purchase. A classic example is McDonald’s asking, “Would you like fries with that?” The goal is to enhance the customer’s experience by offering something that pairs naturally with what they’re already buying.

What’s the difference between cross-selling and upselling?

Cross-selling suggests adding a related item like a phone case with a new smartphone. Upselling, on the other hand, encourages the customer to buy a more expensive version of the product they’re considering. For example, upgrading to a larger drink or a higher-end laptop.

What is downselling?

Downselling is offering a more affordable option when a customer hesitates due to price. If someone decides a premium product is out of their budget, you might show them a similar but lower-cost alternative. It’s a way to keep the sale without pushing the customer away.

How does cross-selling work in online stores?

Cross-selling in online shops is often automated. Before checkout, customers might see suggestions like “frequently bought together” or “customers also bought.” These recommendations are usually based on shopping behavior and are designed to feel helpful, not pushy.

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