Final answer:
Cross-selling involves selling related or complementary products, while up-selling involves persuading customers to buy more expensive options.
Step-by-step explanation:
The difference between cross-selling and up-selling lies in their focus and strategy. Cross-selling is when a company encourages a customer to purchase related or complementary products or services in addition to what they are already buying. For example, if a customer is buying a laptop, the salesperson may suggest buying a laptop bag or a mouse to complement it.
On the other hand, up-selling is when a company persuades a customer to purchase a higher-priced or more advanced version of the product they are interested in. For instance, if a customer is considering buying a basic smartphone, the salesperson may propose upgrading to a premium model with additional features.
The primary goal of cross-selling is to increase the value of the customer's purchase by offering additional items, while up-selling aims to maximize the value of the purchase by convincing the customer to choose a higher-priced option.