Updated December 2023
Online businesses face unique challenges path to profitability. In a hurry to generate revenue and build a customer base, churn interest rates and the inability to scale can quickly derail even the best-laid profitability plan. What generally differentiates companies that achieve profitability from those that do not is the ability to exploit existing customers. As many businesses quickly discover, it’s existing customers, not acquisitionswhich constitute the best and most profitable sources of new income.
Online consumers expect you to do your best to meet their needs, and as e-commerce becomes increasingly competitive, you must do everything possible to ensure their happiness. One way to show that you are thinking about them and working to nurture their interests and habits is to offer them product recommendations. Cross-selling and upselling are two of the most popular ways to achieve this.
That said, it would be helpful to do a quick review of what these terms entail and what differentiates the two.
Upselling focuses on getting the customer to purchase a more expensive product than they originally planned to purchase. The goal of this strategy is to increase the value of the sale by redirecting the customer to a premium version of the product or a more expensive equivalent version.
When it comes to cross-sellingHowever, features are at the heart of the process and it is essential that you demonstrate how the features of both products will work together to improve the customer’s experience with the original product.
If your goal is to sell multiple products, this is where cross-selling should be considered, and compelling data supports it: according to McKinseycross-selling increases revenue by 20 percent and profitability by 30 percent.
In this article, we’ll keep a close eye on some of the most effective tactics that can help you get the most out of your cross-selling strategy.
Better manage logistics
First of all, it is important to remember that cross-selling in basket can easily spiral out of control, becoming a nuisance to the customer instead of a benefit. Make sure the product you are cross-selling complements the main product and costs less. Additionally, offer no more than three products and place the one you hope to sell the most in the middle. Don’t confuse the customer by throwing a pile of products and solutions at them. Finally, show them examples what other customers like them are buying. You can present it in terms like “ten other software companies have added module x to their purchase” or “customers like you have given module x five stars.”
Analyze purchasing habits
Your best data comes from existing customers. Use your data based on what customers purchased together in certain categories. Then, develop a strategy that creates the most effective cross-selling recommendations for each category. This way you predict future behaviors based on past behaviors. Keep in mind, however, that behaviors can change. Part of your strategy should also include monitor and update purchasing habits. A secret ingredient is to be as convincing as possible. Perfect your sale make your case and make sure you clearly explain to your customers why they need the additional product you are offering and how it perfectly fills an unmet need.
Pay special attention to selecting the appropriate product combination.
Relevance is key. When combining products, there are several questions you should ask yourself. Do they have common capabilities? Would it make sense for the consumer to buy them together?
The cross-selling campaign must offer products related to the one the customer has in their basket. One way to ensure this is to analyze the challenges and needs that the product addresses and how the consumer will benefit from it. By taking a proactive approach Through cross-selling, you can show your customers that you understand their needs and are committed to helping them find the best solutions.
For SaaS or software companies, a practical application of this tactic is finding ways to get things done. additional features or add-ons of your products, or perhaps offer supplements price plans.
Use incentives and CTAs to create a sense of urgency
Sometimes customers just need a little help. Creating a sense of urgency will motivate them to think again about the opportunity and make the purchasing decision, so as not to miss it. Discounts, one-time offers, limited offers, limited products/features or even special bonuses will be encourage people buy your product so they don’t miss a unique offer.
Another way to use this strategy is to include compelling CTAs in your copy. Words can be powerful if you can make your speech compelling and take the customers’ point of view.
Reuse customer testimonials
We live in a very digitized world, and there appears to be an ad behind every click. Usually, these advertisements are accompanied by all kinds of messages. Customers have become immune and even anxious when companies try to offer them a deal, even when they go out of their way to make it. sales speech objective.
One constant is that people buy products based on others recommendations or opinions of people. Include testimonials in which buyers recount experiences with your products that impacted them positively; this will build trust and even forge a community of customer allies.
If you don’t have room for a full review, you can always include a section for “customers who bought this also bought this”, which has proven to be effective.
Think of solutions
Customers in any industry are starting purchasing process when looking for a solution to a need or problem. Cross-sell by promoting solutions rather than additional products. Your solution should be a “no brainer”. Using the data you’ve collected throughout the sales funnel, personalize products that you know will meet the customer’s needs. For example, instead of promoting product X as an engagement module, simply say “let customers see your human side with effective engagement.” Have an icon that represents this module that customers can click to learn more.
Include a pop-up
Pop-ups were the essential tool for Ecommerce Marketing for a long time, and for good reason. Sumo reports that pop-ups have an average conversion rate of 3%. The best pop-ups, on the other hand, have a conversion rate closer to 10%. Much of this success is due to the timing of the pop-up. Cross-selling with a pop-up is much easier when you’re already targeting customers who are ready to spend.
A poor cross-selling strategy can lead to “cart abandonment.“Overwhelming customers, not clearly stating what is on offer and simply bombarding them with aggressive rhetoric. sales pitch can irritate them after working so hard to move them down the sales funnel. Avoid this situation by showing that you understand the customer’s needs, even during the shopping cart process. Although cross-selling may be an automated process, efficient data mining will help you provide personalized recommendations that customers perceive to be exactly what they need.
How can 2Checkout (now Verifone) help you improve your cross-selling process?
THE 2Checkout monetization platform helps businesses navigate the dynamic challenges of this all-digital era in the context of their needs for adaptation and excellence. In the world of today personalized experiences, the conventional approach to customer checkouts is no longer enough. We understand the importance of personalized interactions and have created a selection of payment experiences tailored to each customer’s individual preferences. Our goal is to enable merchants to navigate customers seamlessly from start to finish. Our merchants can use different marketing tools, including cross-selling support with ConvertPlus And Online baskets.
ConvertPlus and InLine can support cross-selling with not just one recommended product, but a carousel with two or three. Not only will this help increase average order value and sales, but it will also help increase customer satisfaction by offering products that complement the one the user initially chose or by offering special offers.
EaseUSA data recovery softwareturned to Verifone’s CRO team to payment optimization suggestions and continue the cross-selling design of our default platform, hoping to improve their online performance. This ultimately resulted in a five-fold increase in their cross-selling revenue.
Source: 2Checkout (now Verifone)
We carried out another successful project with IncomeA, a software solutions development company which helps businesses create their own website and digital content.
We collaborated with Incomedia to carry out a A/B testing which attempted to answer the following question: “Between the display of a cross-selling campaign in the Cashier and in the Thank you page, which generated higher revenue? And between showing a product with a detailed description and showing 2-3 products without a description (or very limited in terms of text), which generated higher revenue?
The results were clear: there was a 15% increase in conversion rate during testing and after implementation when displaying the cross-sell campaign in the thank you page and including a detailed description of the product.
Source: 2Checkout (now Verifone)
Conclusion
Cross-selling can be a difficult thing to master, and you may find that your customers are hesitant to engage in your sales efforts.
While you experiment various types and techniques of cross-selling, use these 7 strategies to help you navigate the process. By measuring your progress and making improvements based on what works best for your target audience, you can quickly grow your online business and become a important player in industry.
So this is it ! If you want to know how to leverage our digital commerce services to grow your business, download our solutions.