Upselling and cross selling are common sales techniques that businesses use to increase revenue by encouraging customers to purchase additional products or services. Although they are similar, there are some key differences between the two. In this blog post, we’ll explore what upselling and cross selling are, how they differ, and which technique is better. We’ll also provide examples of upselling and cross selling in the beauty and hair salon industry and explain how Aspio booking system can help salons effectively use these techniques.
What is Upselling?
Upselling is a sales technique where a business encourages a customer to purchase a more expensive version of a product or service they are already considering. The goal of upselling is to increase the value of the sale and ultimately increase revenue for the business.
For example, if a customer comes into a salon and is interested in a basic haircut, the stylist may suggest an upgraded service, such as a deep conditioning treatment if necesary, which would be an additional cost. The goal is to provide the customer with added value and benefits that justify the increased cost.
What is Cross Selling?
Cross selling is a sales technique where a business encourages a customer to purchase complementary or related products or services. The goal of cross selling is to increase the total value of the sale by offering additional products or services that the customer may not have considered or known about otherwise.
For example, if a customer is booking a hair color service, the salon may suggest adding on a hair care product to maintain the color or a blowout service to complete the look. This not only increases the value of the sale but also provides the customer with a more complete experience.
How do Upselling and Cross Selling Differ?
While both techniques aim to increase sales and revenue, there are some key differences between upselling and cross selling. Upselling involves offering a higher-priced version of a product or service the customer is already interested in, while cross selling involves offering additional, complementary products or services.
Upselling tends to be more effective for businesses that offer a range of products or services with varying price points, while cross selling is better for businesses with complementary or related products or services. For example, a salon with a range of hair care products may find upselling more effective, while a salon offering hair color services may find cross selling more effective.
Which is Better: Upselling or Cross Selling?
The answer to this question depends on the business and its products or services. In most cases, a combination of both techniques is best. For example, a salon may upsell a higher-priced haircut or color service, while also cross selling hair care products and styling services.
By using both techniques, businesses can increase revenue while providing customers with a more complete experience. Additionally, using both techniques allows businesses to target customers at different points in the sales process.
Examples of Upselling in the Beauty/Hair Salon Industry
- Haircut Upgrades – When a customer comes in for a basic haircut, a stylist may suggest an upgraded service, such as a deep conditioning treatment or a hair gloss, which would be an additional cost.
- Color Services – A salon may offer a basic color service, but also provide an upsell for a premium color treatment that includes added benefits, such as better color longevity or a more vibrant finish.
- Bridal Services – Many salons offer bridal hair and makeup services. An upsell for the bride may include an extended hair trial or a special pre-wedding consultation.
Examples of cross selling in beauty / hair salon industry
- Hair Care Products – After a customer has received a hair service, such as a cut or color, the stylist may suggest a hair care product, such as shampoo, conditioner, or styling products, to help maintain the results of the service.
- Additional Services – Salons may cross-sell additional services to customers to enhance their overall experience. For example, after a customer has booked a hair color service, the salon may suggest adding on a blowout service or a manicure to complete the look.
- Makeup Products – Many salons offer makeup services and may cross-sell makeup products to customers. After a customer has received a makeup application, the salon may suggest purchasing a specific product, such as a lipstick or eyeshadow palette, to recreate the look at home.
- Skincare Products – Some salons offer skincare services, such as facials or waxing, and may cross-sell skincare products to customers. After a customer has received a skincare service, the salon may suggest purchasing a specific product, such as a moisturizer or serum, to help maintain the results of the service.
- Gift Cards – Salons may cross-sell gift cards to customers, either for themselves or as a gift for someone else. This can be a great way to encourage customers to return to the salon and try out new services or products.
Using a booking system for upselling and cross-selling
In the competitive beauty and hair salon industry, upselling and cross-selling can be the difference between a thriving business and one that struggles to make ends meet. While these sales techniques have traditionally been carried out in person, modern technology has made it easier for businesses to upsell and cross-sell through their online booking systems. By integrating upselling and cross-selling into the online booking process, businesses can boost their revenue and improve the customer experience.
Booking systems like Aspio provide a great solution for businesses looking to implement upselling and cross-selling techniques. Aspio’s online booking system allows businesses to suggest complementary services or products during the booking process, increasing the likelihood that customers will add them to their purchase. Additionally, businesses can use Aspio’s platform to send personalized promotional messages to customers, highlighting complementary services and products that may interest them.
By utilizing Aspio’s online booking system, businesses can upsell and cross-sell multiple times during the customer journey. Firstly, businesses can suggest additional services or products during the online booking process, before the customer even arrives at the salon. Then, when the customer is at the salon, businesses can utilize in-person upselling and cross-selling techniques to suggest additional services or products based on the customer’s needs and preferences.
Overall, integrating upselling and cross-selling into the online booking process is a simple and effective way for businesses in the beauty and hair salon industry to boost their revenue and improve the customer experience. If you’re interested in learning more about how Aspio can help your business implement these sales techniques, please book a demo call for more information.
