In this article we show you some cross selling up selling strategies to understand together how to increase your e-commerce sales.
Over the past year, also aided by the pandemic that has hit us, the online sales sector has undergone a remarkable increase. While it is true that the rush to digitization had been in the air for years, surely these particular circumstances have dramatically accelerated the process. According to a NetComm release, the eCommerce sector in a single month jumped forward 10 years.
So while we have seen clear progress, this has also brought out new challenges. The ‘range of services and products has increased disproportionately to keep up with new consumer needs. Competition has also increased, and it is increasingly difficult to win and maintain a trusting relationship with one’s customers. In fact, they can often find the same item, at a better price, with faster shipping, with a better deal, just one click away.
In addition to this, the general increase in online sales has led to another problem: the average shopping cart value tends to decrease. People are buying more, more frequently, but the single order volume is lower. If we used to buy technology products such as cell phones and computers online and preferred to buy shampoo and toothpaste at the supermarket, now the trend is to buy everything online, even basic necessities. We spend less, but we spend every day.
Therefore, the world of e-commerce faces these new challenges: building customer loyalty and increasing the average shopping cart value. For this scopo possible we adopt upselling and cross-selling strategies.
Amazon itself said that sales generated by upselling and cross-selling activities account for 35 percent of revenue. According to another study, dynamic product recommendations in e-commerce generate 10 percent to 30 percent of revenue (Source: Forrester Research – Sucharita Mulpuru)
Up-selling strategies: what they are and some examples
Up-selling is selling a product or service with a higher value added and thus a higher price than the customer has already chosen.
There are many examples of upselling, the most classic one that is mentioned is the one related to the supersize menu option of Mcdonald’s: usually when we go to pay at the cashier the salesperson suggests the extra-large drink with a small surcharge over the already chosen menu. If the offer is perceived as advantageous by the potential customer, in reality, it is much more so for the company, which is able to make a larger profit on the product sold.
A small suggestion: we recommend that you suggest products that are priced 10 percent higher than what you have already chosen, perhaps with good reviews, so as to stimulate even more purchase.
Cross-selling strategies: what they are and some examples
Cross-selling, on the other hand, consists of offering the customer one or more complementary products to the one initially consulted. The goal of cross-selling activities is to generate additional sales by offering ancillary products or services that meet the buyer’s needs.
Keeping with the fast food example, it is like when the cashier, after we get a hamburger asks us if we also want fries: buying them will not improve the taste or size of our sandwich but, simply, we will add something to our menu! The customer is satisfied because with little, he has added some tasty extras to his lunch, and likewise the company is satisfied because it has managed to increase the average receipt and sell ancillary products, which otherwise we might not have considered.
Up selling cross selling: the results
Well-designed up-selling and cross-selling strategies can lead to:
- increased profits: this is the ultimate goal of any marketing strategy, which is to increase ROI;
- customer loyalty: if we can solve a customer’s problem or need, we gain the customer’s trust. Upselling or cross-selling done well helps customers find more value than they expected;
- increase in average receipt value: making a first sale is already a great step, after we have established initial contact with the customer, why not try to increase the volume of the sale?
- increase in CLV: Considering the difficulty in building customer loyalty and increasing supply, in some cases it pays to target existing customers and stimulate them to make a second purchase. This means lengthening the customer lifecycle and thus creating more opportunities for a new conversion. If a customer perceives that we continue to take care of him and provide him with personalized offers, he will be more likely to stay.
How to implement cross-selling and up-selling strategies with Blendee and increase online sales
As we have said, cross-selling and up-selling strategies, like many others, are based on in-depth knowledge of the customer and personalization of the offer. These are exactly the strengths of a platform like Blendee.
First and foremost, to plan a strategy that works, it is critical to rely on hard data and not just guesswork. By collecting data across multiple devices and channels, you can get a more complete profile of each customer’s unique needs and use this data strategically. From Blendee’s dashboard, you can access this entire data set at any time.
All very nice, but what can I do concretely to deploy these online sales strategies and techniques?
- Product Recommendations: boxes can be placed with a choice of products carefully tailored to the user both within the online shop and in subsequent communications via email, sms, push. Within these boxes, we are going to propose slightly more expensive products to the user, or complementary accessories, such as Frequently Bought Together. The proposal will be customized according to the data collected, so purchase behaviors, certain triggers that we can set, demographic data etc…It increases in this way the probability of conversion and customer satisfaction.
- Triggered Email: by setting up automated emails that start when certain events occur, it is possible to closely follow the customer through their lifecycle, and possibly stimulate them to make a new purchase.
One example is post-purchase emails that can help sustain customer interest in our brand and more easily encourage subsequent purchase. Within these types of emails, you may choose to include a discount, solicit feedback in the form of a survey, or say a simple thank you.
Another example is abandoned cart emails, which are to be sent to those users who have not completed their purchase but have shown strong interest. Remember that these emails go to customers who already have some level of familiarity with our brand, so these are low-effort campaigns that simply remind them to complete the check out. Treat buyers as if you know them (and they know you), so remind them why they can trust you.
And these are just some of the online sales strategies we can deploy; the potential of a platform like Blendee is truly endless and is functional for successful up-selling and cross-selling strategies.
