O que Significa Upsell, Cross Sell e Downsell | #Insight 80

Summary

In this video, Thiago Tesma explains the concepts of upsell, downsell, and cross-sell, providing practical examples of how these strategies can boost a business's revenue. He discusses upsell as offering complementary products to increase a customer's purchase, downsell as presenting more affordable alternatives to secure a sale, and cross-sell as recommending unrelated products to enhance the overall ticket value. By applying these techniques, businesses can significantly improve their revenue and customer engagement. Thiago emphasizes the importance of training sales teams to implement these strategies effectively.

Takeaways

• 😀 Upsell refers to offering a complementary product when a customer is about to make a purchase, encouraging them to spend more by enhancing the value of their initial choice.
• 😀 A common example of upselling is when a McDonald's employee suggests adding fries or a dessert when a customer orders a burger, increasing the total sale amount.
• 😀 Downsell involves offering a less expensive alternative when a customer finds a product too expensive, ensuring the business still makes a sale at a lower price point.
• 😀 A downsell example is when a car dealership suggests a more affordable car after a customer expresses that a higher-priced option is beyond their budget.
• 😀 Cross-sell occurs when a business offers products unrelated to the original purchase, aiming to increase the customer's total spend by selling items they hadn't considered.
• 😀 An example of cross-selling is a store suggesting a DVD player when a customer buys a television or offering a productivity course alongside a Google AdWords training.
• 😀 Upsell techniques work effectively because once a customer has made the first purchase, it's easier to convince them to make another purchase.
• 😀 Downsell can prevent the loss of a sale when a customer cannot afford the original product but is willing to buy a more affordable option.
• 😀 Cross-sell is a bit more challenging than upselling, as it involves offering products unrelated to the original purchase, requiring careful strategy and understanding of customer needs.
• 😀 All three techniques (upsell, downsell, and cross-sell) can significantly increase a business's revenue by boosting the average transaction value from each customer.
• 😀 Properly training salespeople to apply upsell, downsell, and cross-sell strategies can lead to a noticeable increase in business performance and overall revenue.

Q & A

What are the main techniques discussed in the video?

The main techniques discussed are upsell, downsell, and cross-sell. These are strategies used to increase revenue by offering additional products or services during or after a purchase.

What is an upsell?

An upsell is when a seller offers a complementary product or service to a customer who is already in the process of making a purchase. For example, at McDonald's, a customer may be offered fries or a dessert when purchasing a Big Mac.

How does upselling affect a business?

Upselling increases the average transaction value, which in turn boosts the business’s revenue. By offering complementary products, a business can encourage customers to spend more during their purchase.

Can you provide an example of upselling in a different context?

In an extreme conversion context, after a customer buys a product, a seller may offer another product at a steep discount, encouraging the customer to make a second purchase immediately.

What is a downsell?

A downsell occurs when a customer is offered a lower-priced alternative after expressing that they cannot afford the original product. This tactic is often used to prevent losing the sale altogether.

Where is downselling commonly used?

Downselling is commonly used in car dealerships and online training courses, where a customer might initially balk at a high-priced item, and the seller offers a more affordable option instead.

How does downselling help businesses?

Downselling helps businesses retain sales that might otherwise be lost by offering customers a more budget-friendly option, which can still contribute to the company’s revenue.

What is a cross-sell?

Cross-selling involves offering a product that is unrelated to the item the customer is purchasing, but still potentially useful or complementary. For example, selling a DVD player when a customer buys a television.

How does cross-selling differ from upselling?

While upselling offers a complementary product that enhances the original purchase, cross-selling offers an entirely different product that may not be related but still adds value to the customer’s overall needs.

Can you provide an example of cross-selling in a business scenario?

An example of cross-selling would be offering a productivity course to someone who bought a Google Ads training course, even though the two products are unrelated.

What is the impact of these techniques on a business's revenue?

All three techniques—upsell, downsell, and cross-sell—contribute to increasing the average transaction value, leading to higher revenue per customer and overall business growth.