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1. Upselling is a strategy to sell a more expensive version of a product that the customer already has (or is buying), or to add extra features or add-ons to that product. If I’m buying a” TV and the salesperson offers me a” TV or an extended warranty, that’s an upsell.
2. Cross-selling is a strategy to sell products that are different — but possibly related — to the product the customer already has (or is buying). If I’m buying a TV and the salesperson offers me a Roku or PlayStation, that’s a cross-sell.
Its importance in the field of customer service:
I agree with : Rasha Maarabouni
Hi Racha,
Good evening. First, Sally thank you for giving me opportunity to answer this question. I would not like to define what is up selling and what is cross selling, since Risha had done that job. From analytical point of view, up selling strategy applies when upper level of product are not performing as it require and cross selling strategy applies when company wants to push sales for the related products (like accessories). In both objective is same to improve sales and brand image.
Now, you’ll intrigue how brand image will improve? Yes, it will improve. If customer will come know about the product rage which is offered is higher than competitor then it give more option for selection. Also, other point of view is any company will increase the product range when the existing one is getting exhausted or wants to equip with new technology. Where cross selling offer variety of related products which can ease customer’s life. You will find this is very common in now a days to allure more customer due to stiff competition.
Cross-selling generally occurs when the sales representative has more than one type of product to offer consumers that might be beneficial to them. Some fields in which cross-selling is most evident include those of the banking and financial services industries.
Up-selling differs somewhat from cross-selling in that the salesperson is not so much concerned with selling an additional product to generate additional commissions, but rather with selling a higher-end version of the product the customer originally came to buy.