Smart Email Feature8

5 Tips for Upselling and Cross-selling with Email Marketing


Have you ever walked into a store looking for a simple coffee machine, then somehow walked out with a set of state-of-the-art barista tools? Maybe you’ve been shopping for a new pair of shoes just to come home with the shoe, a new running outfit, backpack, and pair of shorts?

It’s not just some odd black magic that sales teams wield.

Cross-selling and upselling are both unique techniques that businesses use to encourage customers to spend a little more than they originally intended. For brands in search of growth, upselling and cross-selling could be incredible tools for growth.

70-95% of the revenue for many brands comes from upsells and renewals.

Studies also show that upselling improves revenue by up to 30%.

What is Upselling and Cross-selling?

One of the reasons email marketing is so effective, is that it can help you to generate more value from an existing customer over time. Cross-selling and upselling help with that strategy.

Rather than helping you to attract new customers, these solutions increase the value of the person you’ve already converted. For instance, dollar save club suggests addons:

With cross-selling, you advertise an additional product or service to a customer when they’re in the middle of a purchase. The idea is to offer something that’s complementary to the existing purchase.

With upselling, you use sales techniques to have existing customers purchase more expensive products or services, or upgraded versions of that solution, to make a sale more profitable. For instance, you might sell a state-of-the-art pair of running shoes, rather than a basic pair. Or like dollar shave club, you might suggest “The Executive” instead of the “4x”:


Why Use Cross-Selling and Upselling Emails?

Cross-selling and upselling emails are excellent tools for strengthening your brand’s growth potential. You boost your relationships with existing customers, and convert your existing clients as often as possible, boosting their lifetime value.

Remember, the probability of selling to a new prospect is around 5-20%, but the chances of selling to a customer you’ve already converted is around 60-70%. That’s because your customers already know you, they’ve already started to trust you.

Plus, existing customers have already gotten a chance to test your products and services out (most of the time), so they know that you’re offering value. Here are some top tips to help you take advantage of cross-selling and upselling with your email marketing.

1.    Segment your list

Segmenting your list is one of the most valuable things you can do as a business owner hoping to increase sales. The leads in your email list all have different needs and expectations. To effectively anticipate what your customers need going forward, you need segmentation.

Segmenting your emails means that you can adjust your offers based on what you know your customers actually need. For instance, you might have one group of people in your list that regularly renews their subscription with you once a year, advertising a discount on multi-year plans when the time arrives for that customer to renew gives you an excellent up-selling opportunity.

Segmentation also helps you to determine what kind of cross-selling opportunities each customer is most likely to respond to. For instance, if you’re selling shoes, some of your customers might love an opportunity to buy protective sprays, while others want an extra set of laces.

2.    Leverage your relationship with your customer

Segmenting your email list makes it easier to send messages that are relevant to your target audience. The more you can personalize your emails, the more your customers will want to take advantage of your deals, because they feel unique to them.

When sending either an upselling, or cross-selling email, start by showing your audience how well you know them. An insight into the purchases that customers have made in the past, what kind of content they visit on your website, and other details will make it easier to deliver a message that convinces your audience you can help them reach their goals.

For instance, when freelancer customers don’t hire anyone for their gig, the company sends an email trying to convince them to use a recruiter. This shows that the business understands its clients problems, More importantly, it includes a stat to convince the customer that the purchase is a good idea.

Leveraging customer relationships and personalizing emails is essential to your success as a growing business. However, it’s important to remember that there’s more to reaching your goals than just throwing your customer’s name in an email. Send upsell and cross-sell emails only when they make sense to your customer’s goals and try to put yourself in their shoes.

3.    Make the purchase easy

If you’re emailing your customers to convince them to upgrade to a better version of a product or service, or add something to their future purchases, you’re connecting after the transaction. Your customer has already purchased something or has decided to put their account on “auto renewal”. They’ve done the hard part of making a purchase.

If you want your customer to spend more, then you’re going to need to make the process as simple as possible. Start by reminding your audience of why they’re buying from you in the first place.

An email that highlights the benefits of the previous purchases that customers have made is a great first-start. When the time comes to suggest the additional purchase, make converting as quick and easy as possible. For instance, Asana allows customers to add new users at the touch of a button.

You can A/B test things like button types, colors, and the transaction process to make sure that everything feels as simple as possible for your audience. Other good ways to make upselling and cross-selling as simple as possible include:

  • Make specific recommendations and show customers the products you think they should get.
  • Send upsell emails when the person is already expecting to make a purchase (renewal times)
  • Consider where your email is going to take your customer, and which steps they’ll take to check out.

4.    Educate and inform your audience

If a customer makes a purchase or sets up a paid account with you, then you’ve already earned their attention and trust (to some degree). You should be able to help your audience out by showing them the next step on their journey too. What the next step actually is will vary between customers and companies, but you should be able to make suggestions based on your business model.

This company (Frontier) helps to push the next step in the purchasing cycle to push more purchasing behavior from customers. As soon as you make a purchase, you get an email with a checklist that reminds you of the things you might need to buy before you’re done.

By positioning the email as a checklist, Frontier helps customers feel like they’re being prepared and getting ready for their vacation in the best way possible. Each CTA button immediately takes the customer to wherever they need to be to make a purchase too.

When someone purchases your product, ask whether there are any additional extras that could give extra value to your customers. Make your audience feel as though they’re making informed choices about what they need to buy or do next.

5.    Constantly Measure and Improve

One of the most important things your company can do when you’re creating an effective email strategy is ensure that you’re constantly measuring the results of your campaign. The more you look at the responses of your target audience, your open rates, conversions, and so on, the more likely it is that you’ll be able to generate positive results in the future.

Examine the information you get from each campaign, and make sure it’s driving the right results. The more you explore your campaigns, the easier it will be to pinpoint other opportunities for upselling and cross-selling too. For instant, you might notice common upgrades and cross-sells that your audience is engaging in on their own.

Looking at your most engaged and loyal segments will show you which items or services most commonly get purchased together. You could even send out polls or surveys to ask your loyal customers which items they’d like to see bundled in a deal opportunity. This gives you excellent direction to work with when you’re working on growing your brand and attracting sales.

Master the Cross-sell and the Upsell

Cross-selling and upselling is an excellent way to make the most of the relationships you’ve built with your existing customers. Once you’ve earned the trust and support of your existing clients, it’s much easier to convince them to keep buying from you going forward.

With upselling and cross-selling emails, you’ll be on your way to a more successful company in no time. Plus, you’ll have endless opportunities to turn your loyal clients into valuable assets and advocates for your company.

Get out there and start experimenting with upselling and cross-selling opportunities. You’ll be amazed by what you can accomplish.




Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email