Continuously growing its revenue is vital for the success of any SaaS startup company. However, There will be a point where your current efforts might not be enough. Luckily, there are multiple ways that you can generate more income for your business.
And one of these methods doesn’t require you to go out and seek new markets to conquer. Instead, you only need to go back to your current customers. We are talking about cross-selling. Let’s explore what it is all about and how you can get more from it with Virtua Solutions’ help.
Understanding How Cross-Selling Works
At its most basic, cross-selling is the process of selling additional products to your customers that serve to augment your main product. It is one of the two main methods of generating added revenue.// The other one is upselling, or the process of encouraging customers to upgrade their accounts.
Image from Hubspot.
The main difference between the two methods is the way the selling is oriented. With upselling, the emphasis is on the greater value that you can get with higher product tiers. On the other hand, cross selling puts more focus on how you can get more out of your current subscriptions with the additional products.
It is also worth noting that these two methods are not entirely separate. You can start by offering an upsell, then adding side products to entice customers to jump into. On the other hand, you can cross sell first and then convince purchasers to also upgrade their accounts. This combination creates a more successful expansion revenue generation scheme.
The Challenges Your Startup Business Will Face
While cross selling is definitely a great way to generate more revenue for your SaaS startup company, it is not that easy. The main challenge here is that you need to convince customers to buy new products that are outside their usual purchases. They would be naturally hesitant here.
Image from Appier.
Another challenge that you will face is determining what kind of products to cross sell. Here, your main problem is that users don’t always have the same needs. These needs constantly change during their entire customer journey. With that, you need to create the right cross selling offer to match their needs.
On the other hand, there might also be gaps in the capabilities of your marketing team. As it is, successful cross selling also relies on the skill of agents. After all, they are the ones who will do the convincing. These gaps can make it harder for them to nail the sale.
How Your SaaS Startup Company Can Do Cross Selling Right
With the above challenges, SaaS companies can sometimes shy away from the prospect of doing cross sells. But this means they are missing out on a major revenue channel. However, if you want to really get more out of this one, you need to do it right.
The Factors You Need To Consider
Whether you are cross selling or upselling, there are two important factors that you have to think about first. The first of this is the value you want to offer. In the case of the former, the question is whether the value of these additional products are worth the extra costs. Here, you want to avoid offering something that significantly increases the overall cost.
Image from MapMyCustomers.
The second factor to take into account is familiarity. As it is, people won’t readily buy products that they are not yet accustomed to. Such products can end up confusing them. Instead of that, you want to offer add-on items that they have used before. This will convince them to jump into what you offer.
Great Cross Selling Tactics For Your SaaS Startup Company
With all of these in mind, it’s time to look at some of the tactics your SaaS startup company can employ for effective cross-selling. These will help you better present the products you offer to customers and convince them to make the extra purchase.
Offer Different Pricing Plans
One of the most effective ways to do cross-sells is to offer different pricing plans for your customers. The idea here is to have different combinations of products for each price tier. That lets users get a package that would match their given needs.
On the other hand, you can opt for a base plan and sell extra features at individual prices. This option lets your users customize their plans based on their preferred needs. When doing this, make sure that the individual price of add-ons are within customers’ expected range to encourage them.
Make The Benefits Of Your Cross Sells Clear
People are more likely to jump into a cross-sell offer if they know well what they are getting from it. Thus, make the benefits of the add-ons clear. Tackle the specific needs a user might have during the cross-sell. For instance, they may be looking for a specific sales solution.
Image from Impact Plus.
By stating the benefits of your products, you give customers a clearer picture of what they can do with your brand. It would also help to demonstrate how these benefits would work That lets them get the most out of the products you offer.
Delivering Support For Your Cross Sells
An essential aspect of effective cross-selling is providing customers with the support they need for these products. For a startup company like yours, that can sometimes be hard to accomplish. Virtua Solutions is here to help you deliver all the support they might need and want.
Our agents can handle everything from the initial inquiry to the after-sales support. Each agent is highly skilled in marketing and will be able to engage with your customers during the inquiry stage. From there, we guide them in the purchase process to ensure they are getting the right add-ons for their needs.
Virtua Solutions is also ready to handle both direct and indirect customer support. With the former, our team can take over your various support channels. That guarantees your customers have someone to talk to when dealing with product issues. Additionally, we will manage your knowledge base and resources, helping customers get the information they need.
Boost Your SaaS Startup Company Profits More Through Cross-Selling
When done right, cross-selling not only increases the profits you can gain from each customer. It can also be a great way to strengthen your relationship with them. Virtua Solutions is always ready to help your startup business get more out of this strategy. Contact us today to learn and earn more.