Selling, or what is called in English Selling, is the process of offering a product to the customer in a manner and manner that encourages him to buy in order to achieve material gains, and it is a concept that has existed since time immemorial, and the method of selling varies according to the nature of the product, its price, and the amount of public need for it, so selling a basic product in People's lives are like food and drink much easier than selling a secondary product. As you know, the pyramid of human basic needs may not include a person's need for your product, or even your product may be completely outside the scope of urgent need.
The real intelligence lies in developing a secondary product and adding specifications to it, which transform it into a primary product in people's lives. We can provide numerous examples in this regard, whether we are talking about electronic or physical products that have evolved over time due to the intelligence of the producing companies. For example, mobile phones were not an urgent need in the past, but with time and the development of mobile phones in a way that made people's lives easier in terms of communication, sharing, and even storing personal data, they became a basic need for every individual. Similarly, the electronic catalog has turned from a secondary product into a primary product for both business owners and consumers, especially after the COVID-19 pandemic. The urgent need for it has led to fierce competition among technology companies. The credit for transforming a product from secondary to primary goes to the intelligence of the product developers and their understanding of people's needs and way of thinking. In addition to that, the policy or tactic adopted in the sales process plays a role. To determine the optimal sales policy for your store and services, an important question needs to be answered: What are the sales policies, and how can you follow a suitable tactic to encourage the targeted customer to make a purchase in one way or another?
Okay, to get the right answer, we need to divide the target customer base into three types:
- Customers interested in my product and I want to increase the desired profit margin from them.
- Customers interested in my product and I want to encourage them to buy another product related to this one.
- Customers who are more interested in the price of the product than the product itself.
Categorizing customers in this way helps us choose the best sales policy or tactic according to the customer's situation. Here we have three sales techniques that we can use depending on the nature of the customer: Up-sell, Cross-sell, and Down-sell.
What is the difference between these three techniques?
Up-sell is the appropriate sales technique for the first segment of the specified customer base above "Customers interested in my product and I want to increase the desired profit margin from them". This technique encourages the customer to buy the product they have already decided to buy but with a small increase in price for a better option either in size or specifications, for example:
If you went to McDonald's to buy a burger, and you chose a medium-sized burger for three dollars, and here the seller offered the same burger that you chose yourself, but in a larger size for four and a half dollars. In this case, because you chose to go to this restaurant yourself and because the burger is your personal choice, you will be convinced of the idea of buying the product you chose in a larger size for a small price difference. However, the seller has achieved in this case the desired goal of this sales policy, which is to upgrade the deal.
Let's take another example, such as Google Workspace, which offers its users several subscription packages at very similar prices, encouraging its customers to subscribe to the higher package, thus adopting the Upsell technique.
There are three main sales techniques that can be used to increase sales and revenue: up sell, cross sell, and down sell.
Up sell is a technique where a customer is offered a higher-priced or upgraded version of the product they are interested in purchasing. For example, if a customer is interested in purchasing a basic smartphone, the salesperson may suggest a more advanced model with additional features. This technique is effective because it encourages customers to spend more money than they initially intended.
Cross sell is a technique where a customer is offered a complementary product when purchasing a primary product. For instance, if a customer is purchasing a new smartphone, the salesperson may suggest purchasing a protective case as well. This technique is effective when the two products are related and can lead to additional sales.
Down sell is a technique where a customer is offered a product at a lower price than the initial product they were interested in purchasing. This technique is often used when a customer is hesitant to purchase a product due to its high price. For instance, a salesperson may offer a less expensive version of the product or bundle it with other products to make the purchase more enticing.
Understanding the nature of the customer and the product being sold is crucial in determining which sales technique to use. While up sell is generally the preferred technique for most retailers, the success of this technique is dependent on the product options available. In the next article, we will discuss the concept of product options and their relationship to up sell techniques.