Upselling and Cross Selling: The Secret to Boosting Your B2B Sales

Before you upsell or cross sell to B2B customers, you need to build trust.

B2B selling requires special care because your buyers are under a lot of pressure to make decisions that benefit their organization. Their buying process is often long and convoluted, sometimes involving teams of up to 23 decision-makers.^[1] Another reason is that 72% of B2B buyers prefer not to work with a sales rep at all, opting instead to make purchases online.^[2] 

These hurdles can make upselling and cross selling more difficult for new B2B sales professionals like you. Upselling and cross selling are sales techniques that are often referred to in the same context, but according to Mike Aldrich, an Orlando-based executive sales professional with three decades of experience, they have two completely different functions.^[3]

“Upselling is about offering an upgrade to a product a customer already owns or is looking to purchase. Cross selling is about seeing the full picture of a buyer’s needs and having enough product knowledge to see how those align.”

Mike Aldrich

Sales professional

What both methods require, particularly for business-to-business (B2B) buyers, is trust. Using insights from our interview with Aldrich, we dive deeper into the differences between these two selling approaches. We also provide use case scenarios so you can expand your skill set as well as your client base. 

What is upselling?

The goal of upselling is to increase the value of a purchase, but let’s be honest: It’s usually done to benefit the business (through increased revenue and customer lifetime value), not the buyer. And buyers can see right through sales attempts that don’t have their best interest in mind.

Aldrich outlines two ways upselling can build rather than erode buyer trust: “You can either validate that the product you’re selling is a good deal by comparing it to another product, or show the buyer how these extra benefits are going to save them time and money in the long run.” Below are two examples of what these approaches can look like.

Ways to boost buyers' trust when upselling

1. The comparison approach

Aldrich’s first example is a kitchen-supply store that was able to validate to its customers that its product was a good deal. “They stocked an entry-level bread maker, assuming clients would like it, but it never sold. Then, they thought that it wasn't fancy enough for their client base.”

“So they brought in another bread maker that had all the bells and whistles. As it turned out, the simpler bread maker was the one that sold because customers now had something to compare it to. Before, they didn’t know whether it was a good deal or not.”

This example of upselling works in reverse because customers are not purchasing the more expensive product. But it still drives sales that were otherwise not happening.

2. The upgrade approach

Aldrich’s second example is what upselling brings to mind for most people: persuading the buyer to purchase your next best product or service.

“This is something that many car salespeople do: They earn the customer’s trust before introducing the next level up. This could look like recommending that customers trade in their car for the next newer model, one that has a stronger motor or better safety features.”

The key to this upselling method is that the upgrade benefits your buyer in the long run, either by saving them money by being more energy-efficient, or by offering additional protection such as safety features. “There needs to be an incentive for the customer to buy up,” says Aldrich. “You can’t upsell for the sake of upselling. Otherwise, you’re not going to build that trust.”

Upselling limitations to keep in mind

As we mentioned earlier, what’s valuable for your business isn’t always what’s most valuable for your customer. If you aren’t careful to consider your customers needs, your upselling attempt may end up looking like a money grab, which can erode trust in your business as a whole.

Other considerations for when to upsell versus when not to upsell include budget constraints. A buyer who has expressed a desire to stay within a specified budget may not be the best candidate for upselling, nor are buyers who are experiencing economic difficulties such as layoffs. In contrast, you might have an easier time upselling to businesses that are growing. Keeping an eye out for media mentions of your buyer’s business is a good way to temperature check.

What is cross selling?

Most sales professionals would define cross selling as increasing the number of products or services a customer buys, but if you ask Aldrich, there’s more to it than that.

Below, we share Aldrich’s examples of cross selling to put this technique into context.

Ways to meet customer needs when cross selling

1. The one-stop shop approach

Aldrich’s first cross selling example examines how car salespeople are able to cross sell products that meet several customer needs at once. “When a customer buys a car, they complete the sale, and then they’re brought into the financial office, which is where the cross selling begins.”

“Dealers pitch roadside assistance, extended warranties—anything the client might be interested in.” Why is this effective? Aldrich explains that “from the client’s perspective, those additional services mean fewer vendors, fewer invoices, and fewer people. All of a sudden they see the dealership as a one-stop shop where they can get the majority of their needs met.”

The key to the one-stop shop approach is to continue asking questions about your customer’s needs. “Cover all their bases,” says Aldrich. “And if you can identify services that don’t fit their needs—such as gap insurance when they’ve already put down a large enough deposit—and you acknowledge what is or isn’t worth buying, that’s going to signal to them that they can trust you.”

2. The gap analysis approach

Aldrich’s second cross selling example, the gap analysis approach, requires use of your customer relationship management (CRM) software. “Something any salesperson can do is create a simple chart that includes the products you offer on the left-hand side, your top clients across the top, and mark the products they’re buying from you with an X,” he explains.

“This information is easy to get if you’re diligent with your CRM. It allows you to figure out what you’re quoting and not quoting. Anywhere there’s not an X, boom: That’s a growth opportunity.” 

Aldrich’s gap analysis approach is also a great way to use social proof to persuade a client. The next time Client 2 places an order for their usual Products A, B, and D, you can tout the benefits of Product C that your other top clients are enjoying and share some testimonials. This builds trust with your client because it showcases the value that others are receiving from your brand.

Cross selling limitations to keep in mind

Like upselling, cross selling without careful consideration of your customer’s needs can make you look money hungry or like you’re just trying to tack items onto their order. There are also ways that cross selling can actually hurt sales:

• Budget-conscious clients may simply reallocate funds toward the additional item you’re recommending instead of increasing their spending altogether.

• In industries such as retail, the more items a customer purchases, the more items they can return—especially if they weren’t keen on ordering those items in the first place. This can result in a revenue reversal, and it’s a risk for service providers too if the client terminates a contract early. 

Your CRM can give you an idea of which customers are good candidates for cross selling and which aren’t by tracking customer behaviors and buying patterns. Good candidates include buyers who have expressed interest in your other products and services; you may also try customers with upcoming contract renewals.

Industries where upselling and cross selling are key

There are several B2B industries where upselling and cross selling are particularly important skills to have. We list a few of them below:

• Technology and Software-as-a-Service (SaaS): As more features and functionality are added to software packages, the price increases. Software vendors can upsell to growing businesses as they start requiring more from their software tools.

• Financial services: Cross selling and upselling are common in the financial services industry where business leaders have multiple goals and require different solutions.

• Insurance: As a business grows, its leaders may consider offering employees a selection of insurance plans to choose from—or upgrade its current plan to keep benefits competitive.

• Food and beverage: Sellers who work in the alcoholic beverage industry, for example, may refer to a restaurant’s purchase history and see that a particular wine sold well. They can then use this information to inform their next sales pitch and cross sell a similar style or vintage to the restaurant.

Start cross selling and upselling with the right tech tools

Now that we’ve covered some examples of how you can cross sell and upsell in ways that build trust, you’re one step closer to becoming a pro:

But it’s important to have the right tech tools to assist you in whichever sales strategy you choose. As discussed, CRM software is a great way to keep customer information organized, such as which products they’ve purchased and what their business needs are. And sales enablement software can keep you informed about the products or services you’re selling with features such as presentation tools and content management.

If your B2B sales team doesn’t yet use these tools, direct your manager toward our Fit Finder tool. Capterra’s Fit Finder allows you to see a list of products that align with your features requirements based on user ratings for those features. This link will direct you to the Fit Finder for CRM software, and this link for sales enablement tools.