Running a business, whether online, brick-and-mortar, or both, has likely made you familiar with strategies like upselling and cross-selling. These time-tested ways of increasing revenue are widely used in the Philippines and beyond, but that doesn’t mean you can easily substitute upselling with cross-selling or vice versa. These two are not exactly interchangeable, and knowing when to use one over the other, in addition to applying them without coming off as pushy, can make a difference in your bottom line.
To help you decide which strategy is more appropriate for your business and your customers, here are some practical tips you can follow.
1. Understand the Difference Between Upselling and Cross-Selling
Upselling and cross-selling are both designed to increase the value of a sale, but they do it in different ways. As such, before you apply either strategy effectively, you need to know what sets them apart first.
Upselling is when you encourage a customer to buy a more premium version of the product or service they’re already considering. Think of suggesting a bigger size meal at a fast-food chain or a higher-end phone model with better specs. Cross-selling, on the other hand, is when you offer related products or add-ons that complement the original purchase. For example, a customer buying a laptop might be offered a mouse, a carrying case, or software.
2. Know Your Customer’s Intent
Perhaps the easiest way to decide between upselling and cross-selling is by identifying what your customer wants.
For example, are they looking for the best option available? That’s your cue to upsell. Maybe they’re browsing for a water purifier, and you know a higher-tier model lasts longer and offers more filters. In this situation, you can confidently recommend the upgrade. Meanwhile, if the customer is trying to solve a specific problem, such as organizing their workspace, then cross-selling related items like cable organizers or desk lamps would be more helpful.
In short, upsell when they’re looking for quality or performance and cross-sell when they’re looking for completeness or convenience.
3. Use Timing to Your Advantage
Keep in mind that when you make the offer matters just as much as what you’re offering.
Upselling, for one, works best before checkout. It’s ideally done while the customer is still comparing options. You can suggest the upgrade right after they’ve shown interest in a base model. Cross-selling is less time-sensitive, as it can work well during or even after checkout. For instance, after a customer confirms an order, you could send a follow-up message with a payment link for accessories or add-ons. This is especially useful for online businesses and social sellers who rely on messaging apps to close sales. Using payment links in this situation makes it easy for customers to complete the purchase without the hassle of going back to your shop or website.
4. Evaluate the Price Sensitivity of Your Market
Filipino consumers are known for being budget-conscious. That doesn’t mean they won’t spend more, but they want to see the value of a premium item first before considering it as a viable option.
If you’re operating in a price-sensitive market, cross-selling may feel more accessible to customers than upselling. A PHP 300 add-on might be easier to say yes to than upgrading to a PHP 2,000 higher-tier version of a product. However, your customer might be more willing to stretch their budget if you can clearly explain the long-term savings or benefits of the upsell, such as better energy efficiency or longer durability.
5. Pay Attention to Product Relationships
The relationship between your products matters. If you’re selling something that naturally leads to upgrades, like software, electronics, or skincare, then upselling is often the way to go. Meanwhile, if your product is part of a broader ecosystem, like a camera that needs a memory card, tripod, and carrying case, then cross-selling is the smarter strategy.
Ask yourself: Does this product make sense with the original purchase? Does it enhance the user experience? If yes, go ahead and recommend it.
6. Avoid Overwhelming the Customer
It’s tempting to throw in every possible option and add-on, especially when you’re trying to hit sales targets. However, from a customer’s perspective, this is far from an ideal move. Giving buyers too many choices can cause decision fatigue and result in abandoned carts.
Instead, stick to one strong upsell or two well-matched cross-sells. Highlight the value clearly and ensure the offer is relevant. Think of it like this: if it feels like you’re helping the customer make a better decision, you’re doing it right. If it feels like you’re pushing for a bigger sale no matter what, you’re probably overdoing it.
7. Test and Measure What Works
Not every strategy will work the same way for every product or customer segment. Try both and track your results.
Use customer feedback, conversion data, and A/B testing if possible. You may discover that your skincare line performs better with upselling (e.g., larger sizes), while your gadget store thrives on cross-selling (e.g., chargers, cases, screen protectors). Over time, you’ll be able to refine your approach based on what works for your audience, not just what works in theory.
Upselling and cross-selling are powerful tools, but they’re not one-size-fits-all. The right strategy depends on your customer’s intent and how well you understand the buying journey. When done right, these techniques not only boost sales but also create a better, more helpful experience for your customers.
By using these tips and paying close attention to timing, relevance, and customer behavior, you’ll be able to confidently decide whether to upsell, cross-sell—or even both—on your way to growing your business.
