There are a lot of marketing approaches out there that involve reaching consumers who haven’t heard of your brand before. These tips are important to your success, but we’ll talk about two more important strategies today.
Overselling and cross-selling are two marketing strategies that require making existing customers willing to spend more, resulting in a higher average order value overall. In other words, these two methods can help your small business grow quickly and improve customer loyalty. Retaining your existing customers is one of the best ways to ensure strong and consistent growth.
But let us first know what is the difference between them and what they actually mean?
Upselling is When you suggest upgrades to your customers, they already intend to purchase. This will help you grow your average order value with small marketing efforts. Such as, if you try to buy a 12 GB mobile online, and the business tries to sell more features that are more expensive like 64GB, that’s definitely what is upselling.
Cross-selling simply means encouraging consumers to buy other related products besides the product they are actually intended to buy. Such as when you added a tablet to your cart and went to the checkout page, a pop-up may appear asking if you would like to purchase a protective case for your device.
Briefly, Upselling and cross-selling may be confused, but there is a key difference. Upselling and cross-selling may be confused, but there is a key difference. Upselling focuses on increasing order value and encouraging a larger purchase, cross-selling means making recommendations relevant to the product that was already bought. So an upsell is more of an upgrade, whereas a cross-sell is a whole other purchase (“Would you like a matching scarf with the blouse?”).
And now let’s look at best practices upselling and cross-selling on our online store!
Personalize Your offers
Personalization always wins, when customers feel that this offer or product is designed to suit their needs, they feel special. 80% of consumers reported wanting more personalized offers from brands. If you are willing to take the time to create certain cross-selling offers for your different segments, you may see a significant increase in sales.
This is not hard at all. You can make it by collecting data about your customers while engaging with them on social media platforms or through their buying behavior. And then use this information to create personas for your customers.
Know the best time to offer
You’ll increase your chances for profit if you know the best time to make an offer.
Here are several situations in which upselling or cross-selling may result in additional sales:
- Once, Customers add something to their cart. Once they click Add, you can show them a pop-up ad with other products that complete their first choice.
- The user goes to the landing page of the product. You can show a side-by-side chart showing the value of upgrading to a high plan. such as if the customer is on the silver page, showing him the value of the gold plan.
- Train your team on upselling and cross-selling based on each customer’s needs.
There will be no sense in overselling and cross-selling so as not to offer relevant products to your customers. The more relevant the sale and cross-sale are, the higher the conversion rate you will achieve. Perform customer journey analysis, target your audience, and show them related products as cross-selling and promotion.
Consider the value
When choosing to upsell or cross-sell products and offer them, avoid recommending products that increase overall order price by more than 25%. For example, if the original product that the shopper is looking for is 200$ you want to avoid showing upselling or cross-selling that costs more than 50$.
Create a sense of urgency in your store
To show urgency, you can use words like “only a few hours”, “limited-time show”, “two items left”, etc. By seeing these words in your store, customers will be encouraged to buy those products you showed as sales increase or cross-sale.
So how do upselling and cross-selling help you as an online business owner?
Enhance customer retention: Offering cross-selling will help grow customer retention because you save their time by giving them the related products they have been looking for. This grows your business besides, enables you to build a stronger relationship with your customers by giving them a better shopping experience than your store.
Increases average order value and lifetime value: Upselling in your store can increase the average order value of your store by satisfying the customers’ needs and at the same time, increase your profit.
Start upselling and cross-selling in your online store and increase your profit by satisfying your customer’s needs. Remember to target the right audience and show them related products in your sales.
we at zVendo can help you use upsell and cross-sell strategies in a very smart way. such as if a shopper buys a ring can suggest a matching necklace with. and this definitely will increase your profit. For more details contact us.