The Clearsale Blog

Upselling and cross-selling tactics that can help you increase your revenue

Upselling and cross-selling tactics that can help you increase your revenue

These practices have long been used in off-line sales. Would you like an example? How many times, when ordering at a fast food joint, have you heard "Would you like to add fries for another $0.50?" or "For an extra $ 0.75 you can add a large fries and beverage."

And they work. A survey by Forrester, a company specialized in surveys and analyses, found out that upselling and cross-selling account for 10 to 30% of the revenue of e-tailers adopting these strategies.

Here you will find the definition of upselling and cross-selling, how they work, and the best way to implement these techniques in your virtual store.

What are Upselling and Cross-selling?

People often think these are the same, but they are not. Here are the differences.

Upselling - once a customer has selected an item, for instance a camera with a 30x optical zoom, he or she is shown options with a larger optical zoom for a small increase in price.

In this case, the retailer is attempting to increase the average ticket by offering a product in the same category, but with an upgrade that offers better specs and may be a better fit with what the customer is looking for.

This tactic of encouraging consumers to spend a bit more than originally intended is known as upselling.

Cross-selling - using the same camera example, let’s say the customer chose to upgrade to the camera with the better optical zoom and continued with the purchase. When the customer clicks next, he or she gets the message "take advantage and buy a tripod with your new camera, and take even better pictures of your family and friends".

 A tripod is a camera accessory and numerous consumers may consider purchasing one. The strategy of recommending products that complement what the customer is buying is known as cross-selling.

Upselling or cross-selling, which one brings in the best results?

Now that you know how each of these sales strategies work, you probably want to know which one would contribute more to increasing the revenue of your virtual store, and we have the answer.

According to a study by PredictiveIntent, a digital behavior analysis and survey company, upselling generates about 4% of sales, while cross selling increases sales by less than 0.50%.  However, an interesting piece of information uncovered by the same survey is that cross-selling used when the customer is checking out, rather than when he or she is selecting items, can achieve conversion rates of 3%.

Although upselling remains the more efficient strategy in both cases, always test both, as data varies by segment and the proposition of your business. If you can implement both, even better.

How to use upselling and cross-selling

Although the goal of both is to increase sales, to use them efficiently you must focus on the customer experience.

In other words, you are trying to make life easier by offering products that may better suit what the customer wants at a reasonable price difference, and even offer additional items that will help him or her make optimum use of their new item.

Bear in mind:

Value - try to suggest items that will not increase the customer's intended purchase by more than 25%. This will make it more likely that your offer will be accepted. If the customer chose something that cost $ 200.00, do not offer anything over $ 250.00. This is true for both cross-selling and upselling.

Number of options - studies have demonstrated than when given too many options, consumers find it hard to choose and may end up not buying anything. So when you suggest things, try to keep the number of options down to two or three.

Approach - once you start using upselling and cross-selling, avoid approaching the customer too often. Insisting at every page will annoy the consumer and make him irritated with your brand. Be strategic, but don't force things.

 Download Credit Card Fraud eBook

Finally, to start using these tactics in your virtual store, check with the platform you are using for apps or plugins that will make the process automatic. Good luck!

You may also like

3 Ways Tech Can Benefit Remote Teams

3 Ways Tech Can Benefit Remote Teams

Ecommerce businesses are used to an ever-evolving digital connection between them and their customers. But 2020’s COVID-19 pandemic has resulted in that digital connection making its way into the..

Shopping Habits by Gender: What’s Changed in 2020

Shopping Habits by Gender: What’s Changed in 2020

Do men hate shopping online? Are women more worried about fraud?

How to Know It’s Time to Create a Mobile App for Your Online Store

How to Know It’s Time to Create a Mobile App for Your Online Store

We rely on our mobile devices for everything—our banking, our gaming, our arguments with that really boisterous neighbor. Naturally, we use our mobile devices for shopping as well.

Are Virtual Events the Future of Retail Experiential Marketing?

Are Virtual Events the Future of Retail Experiential Marketing?

Over the years, retail brands—including those in e-commerce—have turned to immersive experiences as a way to engage customers, build a community, and strengthen their brand experience. Whether..

Preparing Your E-Commerce Store for the Holiday Season

Preparing Your E-Commerce Store for the Holiday Season

It might still be summer on the calendar, but the holiday shopping season is just around the corner.  Are you ready?

5 Ways to Prepare for Black Friday & Cyber Monday 2020

5 Ways to Prepare for Black Friday & Cyber Monday 2020

Closing out a record-breaking 2019 holiday shopping season, e-commerce merchants had no reason to think 2020’s Black Friday and Cyber Monday would be any different.

How Luxury Brands Can Excel in E-Commerce

How Luxury Brands Can Excel in E-Commerce

Luxury brands bring to mind a special touch — spoiling buyers with a glass of champagne as they browse, personal shoppers selecting outfits that suit the customer's style and coloring, attention..

How to Maximize Your E-Commerce Enterprise Through Digital Transformation

How to Maximize Your E-Commerce Enterprise Through Digital Transformation

With three-quarters of Americans online at least several times a day — and some continually — digital technology is taking firm root in our daily lives. Tech-savvy consumers are navigating a..

Your New Website’s Strategy to Sell Online

Your New Website’s Strategy to Sell Online

Congratulations! You’ve decided to get serious about your online approach, but you are nervous about your strategy and converting sales. After all, why should someone choose to buy from your..

Want to write
for our blog?

Please review our writers' guidelines
https://www2.clear.sale/press/clearsale-guest-blog-guidelines
and then email guestwriter@clear.sale with your pitch!

Subscribe to our blog