Sucharita Mulpuru has published an interesting research, where they stated that an average of 10% to 30% of overall e-commerce revenue comes from upselling and cross-selling activities. It proves how the recommendations influence the profit rate. So, investments in developing recommendation tools such as upsells and cross-sells is really matters. But, first of all, let’s figure what is it and what is the difference between them.
What are the upselling and cross-selling?
Both terms refer to product recommendation techniques. Upselling is when you convince your customers to buy more expensive products, packages, bundles or more profitable services.
Cross-selling is another technique to increase your sells by promoting additional products to a customer. It is important to be sure, that the suggestion product increases the value of the min product.
So, if a customer selects a cheap mobile phone, you can recommend him more expensive (upsell) or offer complementary products, like memory cards, earphones, etc. (cross-sells).
If all done correctly, you will have a number of benefits:
- Customer retention
- Increase the average sum of order
- Increase repetitive customers
- Increase ROI
- More profit.
How to implement upsells and cross-sells?
Ok, after taking a look at all advantages of upselling and cross-selling strategies, let’s dive into the most effective ways to use them to increase your revenue. To tell the truth, on practice both techniques are used together in vast majority cases.
In general, entrepreneurs can use upselling and cross-selling on homepage, product and cart pages.
There are a lot of different ways to encourage customers to buy not only more things but also more expensive. Here we look only on the most popular.
Promoting new products arrivals can be really profitable. A lot of stores put such items in a special category or even emphasize on the Homepage.
Another popular way to boost your revenue is to promote package deals. Depend on the price, you can create different bundles and use a Pricing table to compare them.
With the WooBeWoo Pricing Table plugin, you can create a similar table in just minutes. For this:
- Install and activate the plugin
- Click on the Add New Table button, choose the template (Gradient, Flat or Rainbow)
- In the front-end builder customize the table appearance, add/change products and their properties
- Copy Shortcode or PHP code and paste it to your website
Seasonal or daily offers
Special offers are a great way to increase your customer retention. They create a sense of products scarcity and limited quantity.
Sell your bestsellers
People tend to rely on the reviews and opinions of other customers, who have already bought this product. So, you can decrease the time consumers looking for the goods by suggesting the most selling products or goods that other customers also bought.
Offering similar products
If the describable methods above are usually used on the homepage, this technique you can meet on the product page. Offering similar goods do not require any personalization, you just need to tune the system to show resembling products.
Another good way to cross-sell goods when you do not have a customer’s browsing history is to offer him supplementary products. Also, a lot of shops group products in the packages and offer it with discounts.
So, in this blog post, we focused only on the most used techniques and methods. In fact, a lot of online stores combine all these approaches to achieve the best results.