upselling and cross-selling

Using Upselling and Cross-selling to Make More Sales

Have you gotten an offer to upsize your drink or add fries to your burger when going to a fast-food restaurant? Those upselling and cross-selling becomes the marketing strategy you’re fine with, even sometimes you will happily take the offers as it is an interesting bargain. You can easily implement upselling and cross-selling strategies on your eCommerce website that will benefit both you and your customers.

The Difference of Upselling and Cross-selling

Some of you might not really understand the meaning of upselling and cross-selling. Upselling is the way to convince your customer to upgrade their purchases. You can suggest them to buy the higher priced, upgraded, or other add-ons of the consideration item.  Take an example when the customer is going to buy a phone. The selected phone only has 2 GB of RAM, then you can persuade your customer to invest a little more for the better version of the phone which has 4 GB of RAM. Another example is when a customer is buying a jacket, you can offer other jackets with better quality or newest collection.

Cross-selling, on the other hand, is the strategy to sell additional items to the customers’ purchases. It lets you recommend items which are the complement to their original purchases. If your customer is going to buy a jacket, you can do cross-selling by offering scarf or dress to wear with the jacket.

In implementing both strategies, you need to avoid recommending products that are irrelevant or will add a high amount to their original purchase. It will make no sense to offer a laptop when the customer is in search of a phone or suggesting shoes as additional items when he/she is looking for socks. Take a look at how Amazon have done upselling and cross-selling on the right way. They manage to increase their sales by 35% when they begin to implement the upselling strategy.

The Benefits of Upselling and Cross-selling

  • Increase conversion rate

Obviously upselling and cross-selling can increase the conversion rate of your eCommerce. Those strategies can encourage your customers to spend more on their purchases.

  • Give more exposure to products

Upselling and cross-selling allow you to inform products that your customers previously didn’t know you have. When they are too focused on their search, they might not realize the alternative product they can get or the complement product they need to use their purchases. In addition, upselling and cross-selling give the customers broaden choices of products.

  • Increase average order value

As upselling and cross-selling can encourage your customer to spend more on their purchases, it will also give you higher average order value. Increasing average order value will result in higher revenue.

  • Raise customer satisfaction

Upselling or cross-selling will enhance customer experience. Good recommendation you give will be helpful for the customers to make a purchase decision. Hence, you can develop a deeper relationship with customers which also improves customers’ lifetime value.

How to Implement Upselling and Cross-selling on Your eCommerce

Before you start upselling and cross-selling on your eCommerce website, keep in mind that the price of recommended products should never be more than 25% of the original purchases. See how ThemeForest can convince you to add extended support only for $17.63 (which save you $23) when you buy our Upscale theme that costs $59.

  • Create packages/bundles

Show your potential customer that they can save more money when buying the bundles. Package the consideration item with other items your customers may forget they need.

  • Promote popular or similar product

Show what most people love to buy or the similar ones of the product that other customers like to check. Usually, you can see this feature on the product page.

  • Promote related item

Besides promoting popular items, you can also promote the related item. Show products that are easily forgotten, such as batteries when customers want to buy a wall clock. You can show the additional items on the product page or checkout page.

  • Offer add-on features

Just like what ThemeForest have done, you can also offer extra service to your product such as a protection plan or a warranty to the product.

  • Provide free shipping for orders over a certain amount

If it possible, offer free shipping when the customers make a purchase on a certain amount. It will encourage them to place an order in the required value. Moreover, your recommendation can help them to choose what they need to add to their cart.

Wrapping Up

Upselling and cross-selling must be well-executed to make them work effectively. They should be a suggestion only that fits the customers’ exact needs, without pushing too hard. The customers will certainly find the friendly suggestion helpful to make the right purchases. Thus you can provide a better customer experience which helps your business to grow.

What do you think about those strategies? Do you like upselling more or cross-selling? Let us know how you implement those strategies on your eCommerce website.

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