Cross-Sell and Up-Sell

Businesses use marketing to make money in 3 main ways. Firstly to gain new customers - this is the hardest and most expensive way. Secondly to encourage existing customers to return to the store and buy from them again. Thirdly - and this is where Cross-Sell and Up-Sell comes in - to increase the transaction value of each order.

Cross-Sell and Up-Sell are triggered when a customer adds something to their basket. If you were selling torches then your customers will need batteries. Therefore, when your customer adds a Torch to their basket, it's a great idea to say to them 'Do you want some Batteries to go with your Torch?' if they do not have the batteries in the basket already. This is Cross-Sell. At the same time, if someone is buying a £10/$10 torch from you - how do you know that they wouldn't buy a £100/$100 torch from you if they understood the benefits? Imagine if they added the £10/$10 Torch to the basket and it said 'Why not buy this Larger torch which has 10000 watts of candle power, lasts for 30 days on a single charge and can power your mobile phone!?' Clicking on this will replace the Torch originally selected with the more expensive one. This is called 'Up-Sell' and can be hugely effective. If only one customer clicks on the button then you have made an extra £90/$90!

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