Every online purchase offers opportunities to sell more products. Just before the conversion takes place, everything happens in the minds of your customers. Am I making the right choice? Is there anything else included? Can I order something extra to qualify for that special discount? The customer is receptive to suggestions. Up and cross selling boost your sales.
In the decisive phase of the customer journey, all sorts of rational and less rational reflexes fight for priority. This is the time to provide an extra boost. By showing a similar but more expensive product, for example. With just a few more features. Or by showing products that are handy to have with you. Your customer is in the mood to spend money. You can use that to generate more sales and increase loyalty. Up and cross selling are just part of your sales strategy.
"Other customers also viewed…"
A customer has a particular type of camera in mind. A product par excellence, in which product specifications, emotions and comparisons play a crucial role. How comfortable is it in the hand? What are the experiences of other customers? Don't I regret not buying the newest, slightly more expensive type? Your customer is currently receptive to signals such as: 'Others also viewed ...' or 'Often bought in combination with'.
You can help the customer during this decisive phase by proposing more expensive products with good reviews. That is up-selling. By actively 'thinking along' you help the customer to make a good choice and your store to more turnover. This desirable camera naturally includes an extra memory card, a hip bag and a charger. Then you give a set of batteries as a gift. That is cross-selling. Everyone happy.
Just like your butcher you want to sell more products, right?
Up-selling and cross-selling are proven sales techniques, also in the physical shopping environment. Just think of your butcher, if you buy a few bullet steaks. "I also have a nice fillet steak on offer today, ma'am / sir, slightly more expensive, but so much tastier ........" Or the gas station, where the cashier kindly points you to the display with the latest, now discounted candy bars. Then say no. Unless you're strict on lines.
If you want to sell more products, product and action suggestions are often extremely effective. However, it is important that the suggestions are relevant and connect to the product that interests the customer at that time. To stick with the camera example, if you try to sell a trendy heart rate monitor with it, you will miss the point. Then customers don't feel taken seriously. Customers also drop out if you show products that are three times as expensive. Prefer to stay close to the customer experience and don't push too hard. Selling more products is an ambition that belongs to Ecommerce, but that you should not go too far.
Sell 10 to 30% more products with an up and cross selling strategy
Up-selling and cross-selling only work if the additional products or services you offer have a logical connection and reinforce each other and if the differences in pricing are acceptable. About 25 to 30% more expensive than the product that the customer clicked on is still just fine. Above that, chances are that your suggestion will backfire. Be careful with that, because lost is lost.
However, with a carefully applied up- and cross-selling strategy you will definitely be selling more products. Amazon once said that 35% of their turnover is due to upselling and cross selling. The American research and consultancy firm Forrester Research calculates the additional turnover that webshops and platforms make thanks to up- and cross-selling at 10 to 30%. Count out your winnings.
A core condition to be successful is that you always continue to reason from the customer's point of view. Do not consider upselling and cross selling purely as an accelerator of turnover, but as a technique to optimize the customer experience. Important points are:
- always show relevant products;
- offer attractive 'bundles', preferably with a discount
- do not venture too crazy price differences;
- do not push too hard, remain tactful and pay attention to the ultimate timing;
- make the most of the intelligent power of Webshop Personalization technology.
Webshop Personalization is becoming more powerful and smarter
To manage and optimize the process of up- and cross-selling, put yourself as a modern web store Webshop Personalization in. Based on large amounts of data, this technology determines possible links and recommendations that match the choices of individual visitors. Compare it to the algorithms of a search engine that generates the best suggestions based on keywords.
Webshop Personalization technology proposes 'classic', product-related recommendations in the category 'Customers who bought this book, also viewed ...', but also personalized suggestions, tailored to recent (buying) behavior. Think of special prices, promotions, offers, and so on. The more data, the more refinement. Developments are going fast. There are already deep learning solutions that convert their data analyzes in real time to recommendations that greatly increase the chances of up- and cross-selling.
Integrate recommendation algorithms?
Advanced AI-based Webshop Personalization technology is indispensable in e-business. There are now also PIM systems and Customer Data Platforms that offer this technology. Something to watch out for if you are about to upgrade the processes around and quality of your product and customer data. A recommendation from our side: before you get started our free Download PIM whitepaper!