Upselling and cross-selling have been effective sales strategies from time in memorial, and it has gotten even better with an e-commerce website. This is so, due to the use of robust algorithms and tracking systems to collect and analyze data of visitors’ activities as soon as they log on to your website. However, online retailers do not seem to understand that these strategies are as good as they are implemented, that is, the better these strategies are implemented, the more effective they will be.
Upsells and Cross-sells are generally suggestive strategies to customers in order for them to make more purchases. The only difference is, upsells suggest to the buyer a better version of an item being viewed and saved by the buyer, while in cross-sells, related products to that intended to be purchased by the buyer are suggested. Both of these techniques generally boost sales.
Now, upsells and cross-sells come with benefits in addition to boosting sales. It can also increase the number of loyal customers through customer retention, better testimonials about your webshop and as well as an increase in average order.
How then can these strategies be implemented effectively? Whether you want to apply one of the two or even both, then follow some of the guidelines discussed below:
• The key here is to not just be out to increase sales but also ensure your intentions promote and enhances your buyer’s choice. Let your cross-sells or upsells be effective and genuine. Suggest things to customers that can actually be of help to them. When cross-selling for a customer trying to purchase a mobile phone, for instance, let your suggestion be related like accessories for the phone; a case, protector etc. the same goes for upsell suggestions. Let them be as accurate as possible, avoid bringing up items that are unrelated; this is a mistake done by a couple of shopping sites.
• It is important to note that when making upsell or cross-sell suggestion on your webshop, let there be a brief description about the item suggested enabling customer see that your online store understand his/her need and seeks to help improve the customer’s purchases.
• Do more of customer segmentation and demographics. This allows your cross-sells and upsells to be more streamlined to more specific customers. The suggestions coming to each category of customers will definitely be more useful to them than when you make a general suggestion with no pre-analyzed facts about them.
• Position upsell and cross-sell at points of your e-commerce website design where it will be of great effect. For cross-sells, putting them at checkout can be a good way to take advantage of an impulse purchase. While allowing upsells show up at the point of selection by the customer to suggest a better option just before the buyer goes on to another product. That way the buyer can easily remove what was previously selected that seemed to be of lesser standard or a lower version to the one suggested through upselling.
• Make you upsells and cross-sells suggestion visible but not distracting. Your customers need to know that your website has a better suggestion as to the item they want to purchase. But does not mean that your e-commerce upsells or cross-sells suggestions should pop-up on the screen and interfere with the buyer activity. Suggestions should be displayed with simplicity, probably just below the item selected or beside on a panel that suggests related items
• Finally, you should understand that upsell and cross-sell products added, should not cause a huge increase in the initial price total of the item selected. It has been shown that an increase of more than 25% of the original total cart can either make the customer ignore the suggestions or even end up abandoning the cart. So, online retailers should understand that they ought to keep their suggestions moderate.
Effectively implementing these simple steps will go a long way in effectively starting up your online store on upsells and cross-sell strategies and in reaping extensively its benefits. However, keep these suggestions at a moderate level so that it does not become a nuisance to the buyer. Upsells and cross-sells are no doubt great marketing strategies, especially in the online world if it is correctly implemented.