Cross-selling is a common B2B sales technique where you sell additional products to provide customers with a more comprehensive solution.
Cross-selling and up-selling are often confused with each other. However, they are distinct sales strategies. Cross-selling is designed to sell complementary products as add-ons to an existing customer.
Up-selling is selling a larger, more feature-rich, and expensive product/functionality to an existing customer.
Paul Farris, the author of Marketing Metrics, says that the probability of selling to a new prospect is 5-20% while the chances of selling to existing customers are 60-70%. This is especially important for SaaS businesses, as they work on a subscription or recurring revenue model.
Besides the obvious increase in revenues, cross-selling also increases the value a customer receives. This increases the LTV of a customer. A customer who uses more than one product/service from you is more likely to stay longer.