Upselling is the process of persuading a customer to upgrade their product or purchase a more expensive one while cross-selling is getting customers to purchase more products at the point of sale.
There are multiple benefits of upselling and cross-selling in ecommerce. Surveys say that up to 95% of revenue stems from renewals and product upsells, while only 5-30% of revenue comes from the initial sale.
There are many ways to upsell and cross-sell your products and below are the most effective ones.
1. Choose The Right Products
You are probably wondering what products to upsell. Unfortunately, there is no straightforward answer to that question. It depends on the type of products you sell.
For example, if you sell smart TVs, you can upsell directly. “Want faster internet connections, a larger screen, and better screen resolution? Buy this better smart TV for only $50 more.”
However, what if you sell products that do not allow an easy upgrade like this one? In this case, you need to be creative.
For example, you could offer subscription boxes to help customers save up and never run out of your product again.
Product protection is also a powerful upsell. If you sell tech, you could encourage customers to extend their warranty to protect their products.
Let customers personalize products. They would pay more for every customized item they add.
Or, you could create a Buy One, Get One For a Discount (BOGO) deal. If you sell T-Shirts, why don’t you encourage a customer to buy another one for 50% off?
2. Keep Upsells Reasonable
Choosing the right products to upsell is only half the job done. The other half is keeping your offers reasonable. For example, a customer wanting to purchase a $400 laptop will not be interested in a $1,400 MacBook Pro. Or, if a person is purchasing the book on SEO, there is no point in recommending them the book on parenting.
Seeing such irrelevant upsell offers, most customers would simply ignore them and continue with their previous purchase. Always make sure your product upsells are in line with your customers’ needs and budgets.
3. Offer Upsells Across Multiple Locations
To increase conversions and boost revenue, offer up-selling opportunities wherever they make sense.
Product pages are the most logical place to show off your wide array of products.
Alternatively, you could focus on sales engagement and reach out to a customer once they reach a milestone. For instance, when a user creates several tasks in Asana, they receive an email that tells them how to boost their productivity with the premium version of the tool.
Finally, when a customer adds an item to the cart, you should recommend related products. For example, if they want to purchase a flashlight, ask them whether they need batteries, too.
4. Personalize Upsell Recommendations
Upsell recommendations are always more effective when they are personal. Remember that online customers are willing to spend more money on personalized products and offers. According to Accenture, 75% of customers are more likely to buy from your ecommerce business if you:
- Know their buying history
- Provide recommendations based on their previous purchases
- Address them by name
This is exactly where you should consider installing an upsell app. With it, you do not have to know how to code to integrate an upsell process into your store. Upsell apps are affordable and easy to install and use. All you need to do is choose the app that supports the ecommerce platform you use and make your store profile. Once you do that, you will be able to create personalized in-cart offers that will inspire visitors to finalize the purchase.
5. Keep Your Offers Subtle
If you spam customers with irrelevant upsell opportunities or show your in-cart offers at the wrong time, you will probably frustrate a customer and discourage them from buying from you. Precisely because of that, your upsell offers should be thoroughly planned.
For example, showing upsell offers to customers that have just landed on your page does not make any sense because they are still in the research phase. To avoid that, many ecommerce websites decide to show upsell information right below the product a user is searching for. This way, only users that are really interested in a certain product category will be able to see them.
You could also display an upsell offer once a customer decides to add your product to the shopping cart. This is an opportunity for you to encourage them to buy a more expensive product or even make an additional purchase. That is where the abovementioned upsell apps and plugins step in, allowing you to optimize your in-cart upsell offers.
6. Provide Side-By-Side Product Comparisons
This is one of the most common upselling methods and its purpose is simple – familiarizing users with different products on your site, letting them compare them fast and, above all, showing them an alternative item that is better than the one they were originally interested in.
MailChimp is a perfect example of how side-by-side product comparisons should be done. Namely, they create easy-to-follow tables, letting customers compare their different plans. Before a customer hits their “Free Download” button, they can see what extras they would get with their Essentials, Standard, and Premium plans.
7. Provide Social Proof
In marketing, social proof is a theory that people want to know other people’s opinions before purchasing a product. Studies say that they trust online reviews as much as their friends and families.
Now, there are many ways to use social proof marketing when upselling products.
For example, Amazon provides customer ratings and reviews for every product on their website. Additionally, it also says what similar products people also looked at and recommends items that to with the product you are purchasing.
Customers’ testimonials and user-generated content are also powerful ways to gain customers’ trust and prime them to buy more expensive items or buy more.
Over To You
Want to increase revenue? Product upselling and cross-selling is one of the most effective ways to boost your average order value and enhance customer lifetime value. Above all, this tactic will help you build trust with your users and enhance their experiences with your brand in the long-run.
Sure, those are just some of the numerous product upselling tactics to implement. To see what works for you the best, you should run your offers for 1-2 weeks and continuously measure their effectiveness. Above all, do not forget to A/B test your offers so you can focus on ones that deliver the best results.