How to use up-selling and cross-selling in e-commerce?
Every successful business has basically one key task – to earn as much profit as possible. However, this type of activity requires proper implementation on the part of the entrepreneur and the use of appropriate techniques. Among the most recommended are cross-selling and up-selling methods, which are quite simple and provide really measurable results. They also work well in the e-commerce industry. In this article you will learn what are the characteristics of these two techniques and how to use them effectively.
What is cross-selling?
Cross-selling, otherwise called cross-selling, is connected with offering additional solutions to goods chosen by the customer. The proposed product is directly (or indirectly) related to the basic one, such as a case for a new phone.
Cross selling, or buy in a set
These types of methods are really widely used, if only because their use is not associated with the need to take risks. The customer places an order and is decided to buy a given product, he/she can take advantage of the combined offer or remain with his/her original choice. The most important aspects connected with the use of this technique is the necessity to direct the user properly and build in him the need to buy additional products so that his expectations are fully satisfied.
Cross-selling technique in e-commerce
Cross-selling in e commerce should be done in a simple, direct manner, using complementary products as a way to effectively increase the value of the shopping cart. This way, the purchase transaction will be much more beneficial for the seller.
The best way to do this is to use simple messages like: “Customers who bought this product also viewed…”, “Check also…” or “Related products…” with applied thumbnails and links to additional product and offers that will provide a quick link to related goods.
It is also a good idea and an example of cross selling to create sets of related products, such as creating ready-made outfits from clothes available in the store that the customer can purchase to create a complete and fashionable outfit. These methods, called complementary solutions, are a strategy to significantly increase sales with mutual satisfaction – the customer receives a ready proposal of the best matching products, but does not have to take advantage of this offer.
Up-selling, or increasing the value of the product being sold
The up-selling technique, on the other hand, is a strategy consisting in an attempt to sell a product of a higher value than the one chosen by the user, at the right moment – during browsing or before completing the transaction. How does it look like in practice? At the moment of viewing or adding a given product to the basket, the customer receives a proposal of purchasing a product with better parameters and, of course, higher price.
How does up-selling look like in practice?
A good example here is the purchase of a laptop. A customer, deciding on a particular model, is confronted by a salesperson with a higher quality model at a much higher price. As a result, the client can stay with his choice or decide for the proposed, better choice. It is worth remembering to use this technique in an appropriate manner, and not in a pushy way, which may discourage the customer.
Up selling is a technique using offering products to the customer in a favourable way, which is to persuade the customer to buy a better and more expensive model of the same product. The goal of up-selling, as with cross-selling, is to increase sales.
Often when browsing online stores, at the bottom of product offers, there are tabs such as “Customers have also viewed…” where you can see other product offers. However, the displayed proposals do not have to be the actual products viewed, but they will effectively and discreetly direct the customer to the substituted, slightly more expensive products.
A customer interested in electronics while browsing smartphone offers will be happy to see other, much more interesting proposals of the more expensive product placed under the description. The user can then compare both devices and be inclined to buy the more expensive equivalent.
This method is widely used by stores operating in e-commerce industry, which allows them to significantly increase sales profit. We can encounter it every day while browsing and searching for products. So if it is effective, why not also use it in your own business?
Cross-selling and up-selling – what should you keep in mind?
In theory everything seems to be very encouraging, however, many of you are surely wondering whether the mentioned techniques allow you to achieve really reliable results? As with any solution, they offer great opportunities, but they also carry certain risks, which we will try to discuss in such a way that you can effectively implement them without fear of negative consequences.
Know your customer’s needs.
In order for these methods to be realistically effective, it is extremely important to know your potential customer, their needs and their capabilities. A successful sales strategy is all about maximizing profit, as long as you approach it properly. Without knowing the tastes and trends of users, the right combination of complementary products can be a really difficult task. Badly matched offers will effectively discourage customers from buying. Cross-selling is a specific form of combining products, which requires proper sensitivity and adaptation to customer needs.
Create perfectly tailored offers that you yourself would be happy to use. Focus on the functional, visual or additional possibilities resulting from the purchase. It’s a simple way to sales success!
Offer discreetly and meaningfully
The situation is similar with the up-selling technique. Customer preferences are also of great importance here. Additionally, offering the user a product far exceeding their budget or not meeting their needs may be perceived as a tactless, pushy attempt to sell the product, which is definitely not what any customer likes. The main goal of up-selling technique should be an appropriate and tactful attempt to suggest a much better product, which will be much more useful and functional than the one chosen by the customer.
Do not impose your opinion.
Forcing your offers too forcefully and tactlessly is bound to be perceived negatively by customers. This is especially evident during direct sales, but not only. Bombarding users with related products or product add-ons may make them effectively lose the desire to make purchases in your store and, in the worst case, direct their steps towards your competitors. It does not sound encouraging, does it?
Therefore, when putting together cross-selling and up-selling offers, offer the customer the best solutions that will have real value for them. An important rule to follow here is not to be pushy with your offers and services. Only small suggestions and proven proposals.
Cross-selling and up-selling will allow you to effectively increase your sales.
But, fortunately, by choosing these methods in the e-commerce industry, we have a much lower risk of failure. There is no possibility of putting too much pressure on the customer, only displaying similar offers in different places on the website. Thus, there is a high probability that the sales offers completed by us will turn out to be much more attractive than those selected by the user, thanks to which he will decide to buy. By running an online store and following effective tips, the risk of failure is really low.
Why cross-selling and up-selling increase the effectiveness and revenue from transactions?
When we sell e-commerce and use the possibilities of cross-selling and up-selling techniques, we have the opportunity to persuade the user to buy additional products within one transaction and we can effectively persuade him to make another purchase. The natural result of these actions is, of course, increased sales profit while keeping the same or similar number of customers. Offering customers complementary products in an online store allows them to better meet their needs, so they also positively appreciate the opportunities offered by cross-selling and up-selling techniques. That’s a lot of benefits that your business can’t miss out on as well.