Content of the Article

A large number of people know the terms cross-selling and up-selling from online shopping. Cross- or upselling are strategies that are used to increase sales through additional or higher-value offers. The notices: "Customers who bought this product also bought" or "similar articles" are now standard in many online shops.

In 2015, Amazon generated 35% of its revenues with cross-selling. Although no current data is available, it can be assumed that the strategy is similarly successful today. After all, Amazon is one of the most valuable companies in the world. Before we begin to explain how you use the potential in Dynamics 365, it is important to distinguish between the terms cross-selling and up-selling.

Cross-Selling in Dynamics 365

What is Cross-Selling?

Cross-selling is the technique of proposing additional products to the buyer that match or complete the product in the shopping basket. As a rule, these are products that complement the product in the shopping basket. For example, the matching laptop bag is offered with the laptop or the matching headset with the smartphone in the basket.

What is Up-selling?

Upselling is about offering a higher-value and therefore more expensive product in the same category. This can be the next better model for television with smart TV, or the well-known maxi-menu in a fast food restaurant. However, it is important not to scare customers away with an overpriced upsell product. The rule of thumb is that the Upsell product should not be more than 30% more expensive than the product the customer is interested in.

Creation of Product Relationships in Dynamics 365

First, the relation between the products has to be established manually. Dynamics 365 does not yet have an algorithm that automatically recognizes these product relations, as is the case with Amazon, for example. Therefore the careful maintenance of the offered products is the basic prerequisite for cross- and upselling in Dynamics 365. However, we can assume that Microsoft, within the framework of its AI strategy, will sooner or later implement such an algorithm in Dynamics 365. Until then, the products have to be linked manually.

To do this, you must open the desired product and add a product relationship.

Cross Selling in Dynamics 365

Our product is the Dynamics 365 for Sales Professional license. We link this product to the Dynamics 365 for Sales Enterprise license. Since it is a higher value Dynamics 365 for Sales license, with a higher price, the relationship type is Up-selling.

Cross Selling in Dynamics 365

There are two different choices for the direction:

      • Uni-Directional
      • Bi-Directional

Uni-Directional means that the sale can only take place in one direction. It is possible to offer the Enterprise license as an alternative to the Professional license, but not vice versa.

Bi-Directional means that the sale can take place in both directions. If Bi-Directional is selected as the direction for an up-sell, the user receives an error message. After all, we try to sell a higher-value product with an up-sell and not the other way round.

Cross Selling in Dynamics 365

Cross Selling in Dynamics 365

Afterwards, we would like to extend our product by a cross-sell relationship. To do this, we select an Office 365 Business Premium license as the product to be linked. In this case, it is possible to select the direction Bi-Directional. Both products work independently, but are closely linked in the Microsoft world and complement each other with new functionalities.

Cross Selling in Dynamics 365

The linked products are now listed in the subgrid product relationships.

Cross Selling in Dynamics 365

Using Cross- and Up-selling in Dynamics 365

To be able to get the cross-selling or up-selling products in a quotation, they must be included in the price list stored in the quotation. The background to this is the possibility of offering the same products at different prices. The price list specifies how many products are available and at what price they are offered.

Cross Selling in Dynamics 365

Cross Selling in Dynamics 365

If this condition is met, the product can be marked and the previously created product relationships can be displayed.

Cross Selling in Dynamics 365

Cross Selling in Dynamics 365

If we add a cross-sell product, the quote is extended by another product.

Cross Selling in Dynamics 365

Conclusion of Cross-Selling und Up-Selling in Microsoft Dynamics 365

The advantages of cross-selling and up-selling are obvious. Acquisition costs can be drastically reduced as the customer has already expressed interest and an important psychological barrier has been overcome. In the case of regular customers, cross-selling or up-selling can also maintain the customer relationship.

However, some customers find cross-selling or up-selling attempts annoying. A certain intuitive feeling should be therefore present if the two sales techniques are used.