The holiday season represents the biggest opportunities for businesses to meet or exceed their sales goals. Based on Adobe’s (Adobe Digital) predictions, e-commerce purchases on these days in 2020 hit a new total record.
Every merchant wants a piece of that holiday pie. But to get your fair share, it’s time to begin implementing NEW marketing strategies.
If, as many marketing experts insist, it is easier to sell to an existing customer than to a new one, then merchants should get to grips with the concept of upselling and cross-selling.
These strategies are designed to drive more sales and provide easy online shopping by offering complementary products or higher-quality alternatives.
But, how do you upsell to your shoppers without upsetting them then still successfully making the sale?
When upselling (or cross-selling), success lies in convincing your customer that your recommendation will be a real benefit to them. A person who is looking at a $10 shower gel may not be interested in a $345 body lotion. However, that person may be interested in a $13 body conditioner. Be sure to align your upsell and cross-sell with customers’ needs and wants.
We’ve rounded a few quick tips on how to upsell and cross-sell your existing customers:
Make your suggestions relevant
Imagine you have added a bookcase to your shopping cart. If a website recommends you another bookcase, you won’t go for it; you don’t want to buy an extra bookcase right now.
But if a webstore offers you need a storage box to go with a new bookcase, now that makes more sense. So, upselling is all about adding value and supporting your customers in reaching their goals. Here’s how Ikea implements this concept through a “Must be completed with” box. If someone’s looking at LED cabinet lighting, Ikea recommends a driver for wireless control that makes their first purchase better.
By upselling or cross-selling your products and services the right way you should know your customer’s wants and needs and offer innovative and practical options.
Take care of the price difference
Customers think of your upsell from one perspective: “How much does it cost?” If your products recommended are too expensive, customers won’t bite.
For instance, a consumer has purchased a $17 turtleneck sweater. And you recommend a better one priced at $40. The consumer might even drop the idea of purchasing a turtleneck sweater (at least from your webstore) since the better option is 2x more expensive than the original one.
Here’s the golden rule of upselling: the recommended product should not exceed more than a certain percentage of the cost of the initial product. Some put this figure at 40% (Bitcatcha), while others have a different number.
The takeaway here? Testing and benchmarking are paramount. You’ll find what works for your audiences.
Add a discount to your recommendations
Offering a discount will help make the upsell easier for customers to accept. Discount is perfect during the holiday season, or anytime you want to get more sales.
It’s worth keeping in mind that:
- The discount should be easy to calculate. Based on research, people are quicker to respond to easy-to-calculate discounts. For example, use discounts like $10 marked down to $6, instead of $10.99 down to $6.66.
- Urgency is so effective for upselling because it forces your customer to make up their mind right away. If a customer knows that your upsell is time-sensitive, it might nudge them a little closer towards purchasing upgraded products.
Add product recommendations in expected and unexpected places….
Create more upsell and cross-sell opportunities and add product recommendations widgets everywhere it makes sense. The most typical points for cross-selling and upselling are:
- Homepage, where you can tap the “Top Sellers”, “Trending Now”, or “New Arrivals” strategies, which showcase the most popular and new products to first-timers.
- Category page, where “Trending now from the same category”, “Top sellers from the same category” are great strategies to use to bring more attention to the stuff other shoppers already love.
- Product detail page, where customers spend the most time, so take the opportunity to suggest different product versions. Here’s a visual of how Madewell does it:
But, you don’t have to only locate product recommendations widgets on these pages. Why not use suggestions on your 404 page and give your visitors the shortest way to come back to your store? A recommendation block on a checkout page could inform the shopper that they only need to spend a little more to get free shipping.
… But don’t be too pushy
How heavily you deploy your suggestions is your decision. Some sites add them to every single page of their store.
Too many recommendations can be a turn-off – and potentially can cost you a sale. Alternatively, when product recommendations are done right, they can lead to a massive boost in revenue. We recommend putting your product suggestions in the correct places on your site – without going so overboard that you push customers away.
Employ in-cart upsell pop-up
This kind of upsell gives you an easy way to deliver higher-quality alternatives to customers who are already buying and convince them to spend more.
Upselling is a proven technique to drive more sales responsible for up to 30% of revenue. And there’s more: suggestions to customers for desirable products strengthen your customers’ confidence in you and maintain their loyalty throughout the holidays and beyond.
Start upselling and cross-selling
Every business should have a few tricks on their sleeve. One such trick is upsells & cross-sells. You probably interact with these on a day-to-day basis. Amazon puts them all over, from your storefront to your cart page, and Netflix knows if you’re more likely to enjoy The Queen’s Gambit or Crown. But Amazon and Netflix are giants. Small businesses can’t upsell and cross-sell, right? It takes great skill and a bunch of boring things that the common merchant doesn’t want to think about.
That’s where Recom.ai might come in handy. By using our app, you can deliver recommendations personalized with the products each of their customers is most likely to purchase.
Recom.ai – Upsell & Cross-sell is trusted by over 5K online merchants.
- Create flexible rules to suggest products your customers are likely to purchase.
2. Select pages for product recommendations blocks.
3. Edit the layout and style of your product recommendations block and click Publish to start delivering personalized product recommendations to your customers.
We hope our tool will help you dramatically increase your company’s growth by effortlessly creating upselling and cross-selling opportunities.