Tactics To Boost eCommerce Revenue With Upsell and Cross-sell
According to a report in 2006, cross-selling and upselling contributed as much as 35% of the revenue of a business.
Analyst Sucharita Mulpuru of Forrester Research said that product recommendations account for an average of 10-30% of an eCommerce site.
Therefore, when you run an offline store or online business on Shopify, you should apply the cross-sell and upsell campaign to boost your sales.
What are Upselling and Cross-selling?
Upselling and cross-selling can support each other well to get the best result.
Buy a leather coat from me and I will offer you a better one with a higher price: the better one is an upsell.
Buy a laptop from me and I will suggest a wireless mouse: a wireless mouse is a cross-sell.
Therefore, upselling is to sell a superior, more expensive version of the item that the clients already choose. The superior version is a higher, better model of the product.
Cross-selling is to sell related products to the one a customer already buying. They will be complementary in nature.
Bundling is one more popular selling technique. It means you bundle together the main product and other auxiliary products and the price is higher than what the single product is sold for.
What is Bundling in eCommerce?
Bundling one product and two very related (even essential) ones is a compelling offer to customers. Therefore, customers will have the best experience with the product. Besides, merchants also use bundling along with a discount to increase the perceived value of the offering.
We have 2 types of bundling: pure bundle and mixed bundle
Pure Bundling means that all the items are made available only in bundles and cannot be bought individually. Mixed bundle offers you 2 options: individual purchase and bundle purchase.
The key to successful bundling is how you mix the products. You should combine the products which work well together so that your clients can take the best advantages of your products.
In addition, you can offer the bundle: Specify a minimum order amount to qualify for free shipping. So, clients who are looking to purchase only one item are likely to switch to the bundle in order to raise order value and qualify for free shipping.
In addition, customer service is also important for business. You should take care of them well and support them whenever they need to gain their trust and loyalty.
Why Are Upsell and Cross-Sell Important For Business?
Many people think that upsell and cross-Sell are unethical practices to squeeze more out of the customer. If cross-selling and upselling are used unethically to try and make the customer shell out more, this tactic and business don’t last long.
However, if upselling and cross-selling are used to ‘help customers win’, it becomes more friendly suggestions and a helping hand to make the ‘right’ purchase.
So how can upselling and cross-selling help you?
1. Increases Customer Retention
When customers want to buy something, they know what they need but they don’t know which is the best choice for them. Therefore, it is better if you can suggest to them the best solution to the problem. When you help the customer find more value than he was expecting by upselling or cross-selling, you become his best friend. They are more likely to return and drive 43% of your revenues.
2. Increases Average Order Value and Lifetime Value
According to the report of a marketing metric study, the probability of selling to an existing customer is 60 – 70% when this number is 60 – 70% when selling to a new prospect. As the result, you can boost your revenue effectively if you can upsell to existing customers to increase lifetime value.
When you are selling online, the help of an app is necessary. I suggest the shopify upsell which allows you to give the suggestions to the purchasers at the right time. You are free to choose products for the campaign and it is also available to create discounted upsell & cross-sell campaign to stimulate customers’ shopping needs such as buy one get one, buy X get Y or get free shipping.
Read more useful information to improve your business on blog of Autoketing.
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