Based on BCG research, companies with stellar personalisation strategies see improved marketing efficiency, higher digital sales, and long lasting customer relationships. They also see a boost in their growth rates by 6% to 10%.
In this article, we will cover everything you need to know about upselling and cross-selling. Additionally, we will reveal the secret sauce to upsell and cross-sell in your online store without you lifting a finger. Let’s dive in.
What is upsell?
Upselling is a sales technique where the seller suggests an upgrade to the customer’s current purchase. For example, a car salesman might try to convince a customer to buy a more valuable car than they planned.Our goal in here is to serve customers and make it easier for them to purchase more premium items.
Why online stores should care about upselling ?
Webshop owners should upsell to increase the average order value and boost their sales. By upselling, you can offer your customers more premium products that they actually need or want.The ultimate objective here is not just increasing overall sales but providing a personalised customer experience!
A good example of a successful upselling strategy is Amazon. The popular e-commerce site has been able to upsell millions of dollars worth upgrades in one click. The website automatically shows companion products or free shipping options.
When should an online store use upsells?
When upselling, it’s important to ensure that the product you’re suggesting is actually an upgrade. If it’s not, then you risk coming across as pushy or insincere. The upsell needs to be relevant to the customer’s needs and wants! Many businesses decide to upsell during the checkout process.
How to apply upselling techniques to your online store
2 common practices to upsell in online store is using banners and creating bundle deals.
Use pop-ups or banners: You can use pop-ups or banners on your website to upsell customers. For example, you could have a banner that appears when someone is selecting a special product in your site that offers them a discount if they purchase a product now.
Create bundle deals: You can create bundle deals that offer more value for the customer. For example, if someone is buying a shirt, you could upsell them by offering a bundle that includes the shirt and a pair of pants for a discounted price
The best way and easiest way to upsell in our online store is to use AI shopping assistant. The system’s automated smart upsell algorithm offers relevant upsells to boost more valuable products. Check out our top 5 best Ai Assistant Tools. With AI- technologies, you just need to sit down and watch your sell is rolling in. The best part when using an AI shopping assistant is that the system takes care of your customer and sells even when you are sleeping.
What is cross-selling?
Cross-sell is the sale of additional products that complement the item(s) that are currently in a customer’s shopping cart. This can mean recommending an accessory or some other complementary product for the one you’re trying to get them to buy.
While upselling would be suggesting a higher-end car to a customer who’s already interested in buying a car. Cross-selling, on the other hand, would be suggesting add-ons or accessories that go with the car.
Why cross-selling is important for online stores
Adding cross-sells to your online store can increase the average order value (AOV). A study found that up to 35% of Amazon’s revenue comes from cross-selling practices. Additionally, here are more reasons why online stores need cross-selling:
- Increased Conversions – Predictive Intent found that cross-sells on the checkout page can actually increase conversions by 3%.
- Increased Customer Satisfaction – Shoppers are happier when they’re offered add-ons that enhance their product experience, which leads to long-term brand loyalty.
- Increased Revenue – The worldwide average of website revenues generated from product recommendations was 12%.
When cross-selling should take place
Cross-selling can occur in many ways:
- At checkout through upselling (elevating their order value by upselling them on extra products).
- In email marketing with personalised recommendations based on previous purchases and browsing behavior.
- On mobile apps with push notifications containing more information about related items.
In online stores, cross-selling often starts with signals like
- Related Products
- Frequently Bought Together
- Shop By Look
To make cross-selling work well, here are 3 fundamental rules.
- Complementary – Ensure it is actually compatible with the original sale item
- Cheaper than the original product – Cross-selling shouldn’t add more than 25% to the final purchase price
- A no-brainer – complementary products shouldn’t need explaining
Getting cross-selling method in an online store
1. Cross-selling on product pages.
People who are looking at a product detail page are already interested in that product. This is a good time to show them related or complementary products. It is best to offer products that cost 10% to 50% of the primary product’s price. Cross-selling on product pages is often at the bottom of the page, after the product details. This placement can be a disadvantage because people need to be highly interested in your page to scroll down that far.
2.AI shopping assistant
The future of retail is here. AI-Shopping Assistants are a new and exciting way to increase product recommendations for your online store without any work on your part! With these tools, they can scan customer history from past purchases as well as analyse browsing habits in order to find the best possible match between what you sell and who’s looking at it – all automatically. Just let their software do the heavy lifting while YOU focus on running an awesome business.
With Upsy – AI shopping assistant, the system will offer recommendations for products based on what’s in your cart.It does this with an impressive level of accuracy, so you don’t have worry about getting bad recommendations when it comes time for purchase!
AI is replacing manual work in Upselling and Cross-selling
As retail businesses increasingly adopt AI-powered technologies, manual tasks such as upselling and cross-selling are being replaced by automated processes. Traditionally these tasks have been performed by sales associates who use their interpersonal skills to encourage customers to buy and take care of customers. However, with the advent of AI -powered retail technologies, retail businesses are now able to automate these processes.
AI-powered retail technologies can analyse customer data to identify upsell and cross-sell opportunities. In addition, some retail technologies can directly place orders for higher-priced items or additional items on behalf of customers. As a result, AI is increasingly playing a role in retail upselling and cross-selling
Are you ready to increase your average order value? If you don’t have the time to merchandise every product on a category page, hire an AI shopping assistant to do it for you.
Interested in learning how AI base shopping assistants can help you sell more with upsells and cross-sells? Schedule a demo with Upsy Shopping Helper today to see how cross-selling and upselling strategies can grow your business.