Breaking Down Cross-selling and Upselling in Tech Sales

If you’re here, you probably know a little bit about selling… but what about cross-selling and upselling?

Are they fancy terms for the same thing, or (spoiler alert) are they important and distinct sales skills that, when perfected, can help you push your career further?

While both describe selling more to customers, each tactic does it a little differently. But no matter how you slice it, they’re both important components of a sales process that encourages more revenue flowing into your company.

So, let’s break it down into what you need to know about upselling and cross-selling in tech so that you can confidently reach your full sales potential in no time!

What is Upselling?

An upsell is when a customer is persuaded to buy a more expensive version of the product they were originally interested in.

It can happen at the time of purchase (supersizing an order of fries) or after a purchase has been made (upgrading a basic account to a premium one).

For example, let's say a customer comes into your store looking for a new smartphone. After you show them a few options, they settle on last year’s model which costs $500.

Then you tell them about the newest model at $700 — after all, it comes with a beefier camera. The customer was originally only going to spend $500, but thanks to your upsell, they end up spending $200 more!

What is Cross-Selling?

A cross-sell is when a customer is persuaded to buy a related but different product alongside the product they were originally interested in.

Similar to upsells, they can happen at the time of purchase (like people like you also buy” suggestions) or further down the line when a customer could benefit from adding something new into the mix (think based on your usage, we recommend the following products”).

Let’s go back to that customer and their new phone. While they’re checking out at your store, you show them a few different protective cases they might want.

After all, wouldn’t they like to protect their new investment? It’ll only be another $65 — another boost to the final sale amount thanks to cross-selling.

How do Cross-Selling and Upselling Work in Tech Sales?

The beauty of upselling and cross-selling is, while they’re different skills, they complement each other well. Especially in tech sales!

For example, let's say someone buys a new piece of software from your company.

A year later, you could convince them to buy an upgraded version of that software with new features and functionality (an upsell). Or, you could pitch an entirely new piece of software that works well with the original piece of software (a cross-sell).

Here’s why it’s important for tech sales teams to pursue both tactics:

• Increases revenue: Both upselling and cross-selling can increase a single customer’s value, both at the time of purchase and over their entire time as a customer with your company.
• More opportunities: Existing customers are more likely to try new products you offer than new customers – and they’ll spend more money along the way.
• Improves retention: By giving your customers more choices in how they customize their experience to meet their needs, you help keep them around (and happier) for longer.
• Prevents churn: Upselling and cross-selling mean you’re engaging with your customers more often and checking in on their needs, keeping them around for longer.

While Account Executives may do a bit of both in their job, they’re also important responsibilities for Customer Success Managers and Account Managers.

With fresh features that continually add more value to your customers, you’ll always have something new to offer your customers — and keep them coming back for more!

Ready to Put Your Cross-selling and Upselling Knowledge to Work?

You’ve got a good start right here, now that you know all about upselling, cross-selling, and how they apply in the tech world. With this helpful guide, you'll be closing deals in no time!

No matter what direction you’d like to take your sales career, we’re here for you! We're providing you with the knowledge, tools, and resources you need to find and reach Career Success!

And you’ll find even more opportunities to learn and hone your skills in Uvaro’s Career Success Catalog, where you can explore what we’re all about and what we can teach you as you advance in your sales career.