The e-commerce market is becoming more competitive and demanding day-by-day. Many e-commerce businesses are using different marketing strategies and techniques to stand out in the competition. It’s not easy for online stores to attract customers to make purchases and to get an average order value on a daily basis. Therefore, the e-commerce market came up with the terms up-selling and cross-selling to generate ROI.
Many online businesses use this pair of techniques to boost their sales and improve their customer base. These techniques provide customer satisfaction by offering better products or a real solution to the customers. Eventually, you make a profit by selling a costlier product or more additional products. Let discuss up-selling and cross-selling in detail.
What are Up-selling and Cross-selling
Up-selling and cross-selling are two different branches of selling.
Up-selling is a technique to offer a better, superior and expensive version of a product that customer is already buying. The product can be better in looks, features, the quality that increases its cost value.
For example, you’re buying a notebook and we’re offering a better notebook with more pages, better quality pages for an extra 10 % cost. This is upselling.
Cross-selling is a strategy to offer additional products that are related to the one the customer is already buying. These products can be counterparts or complement the existing products that are useful, relevant or necessary.
For example, you’re buying a burger and we offer you an additional cold drink and french fries pack at a reasonable price. This is cross-selling.
Tips for Up-selling and Cross-selling
Now we’ll discuss some tactics for up-selling and cross-selling that can maximize your sales.
1. Know your Customers
You need to keep a check on your customer’s activities on your page. Their purchase history, their shopping habits, payment modes, and background can help you to know about their needs and payment abilities. All these details will help you to offer products for up-selling or cross-selling.
If your customer is making a frequent purchase then he/she will definitely believe in your offers or recommendation. Therefore, always keep an eye on your customers.
2. Hit when the iron is “hot”
You have to wait for the correct moment to offer any up-selling or cross-selling products. When your customer has selected a product and went to the shopping cart, then you can offer an up-selling product. There are fair chances that the customer will consider your offer because he’s already into your brand. Additionally, if it is more beneficial and helpful then they’ll definitely buy it.
When you’re cross-selling you can wait for the customer to make a purchase. Thereafter you can offer related products that can make the customer feel assisted. You can also offer it before the purchase together as “bundling” at a discount price.
3. Generate the demand
It is important to generate a desire for your offer. The customer is at your website with something in his mind. You need to make your customer feel that he needs your offer. The offer you make should be beneficial and useful to your customers. It will only make them feel that you care about their needs and satisfaction.
You have to show that the product you’re offering will give better results. Also, you can add any extended guarantee or warranty on the product. It will assure the customers about the offering. In cross-selling, you can show your customers that other ‘customers who bought this product also bought the offered products’.
4. Reasonable pricing
Your customers must feel that they are making a profitable deal by purchasing the superior version or additional products. Yes, it is true that added value is more important than the cost, but think of the offer that gives more than you expected. If your offer is at a good price than your customer will definitely like your products and will come back for further purchases. You’ll earn a loyal customer and also extra sales.
People believe in recommendations from specialists, professionals or satisfied customers. It gives a sense of assurance and confidence to buy your products. You can use testimonials, customer feedbacks or ratings then it will market your offerings. If a recognized person has recommended your product then the brand reputation will increase and people will trust your products.
Up-selling and cross-selling strategies are highly used and effective techniques of e-commerce. However, some wrong steps or actions can result in losses in place of profits. So, be aware to plan your selling strategy with these techniques.