What's the difference between upselling and cross-selling? Both are great ways to increase AOV and LTV so let's break down the difference.

An upsell is a product recommendation that is intended to add additional benefit to an existing order, thereby increasing the cart value. You'll often see this with membership products where you can "upgrade for extra features".

Cross-selling is a product recommendation which is related to the products in a customer's order. Think of this like buying coffee beans online and being recommended to buy coffee filters as well.

You’ll often see examples of this with merchants who sell physical products, like a “customers who bought this also liked…” section on a product page (like the one shown in our video from Love Raw).

What upsells and cross-sells both have in common is getting your customers to make the most out of their orders. Which means it's very important to personalize these recommendations as much as possible to fit the customer and their needs.

So let's recap!

- Both upsells and cross-sells aim to increase AOV and LTV
- Think of an upsell as an “upgrade”
- Think of a cross-sell as a “why not pair it with this?”

If you’ve been seeing steady growth in your customer base but noticed a plateau in your MRR growth, try looking into upsells and cross-sells.

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