How to Up-Sell and Cross-Sell Effectively on Your Magento Store
“Would you like a coke with your burger?”
“We also have an extra value combo you might like that includes a burger of your choice, medium-size fries and a medium coke.”
“Do check out today’s special eats on discount.”
You may hear these lines frequently while ordering food at a restaurant.
And if such suggestions ever got you buying (or spending) more than you intended, know that the retailer had a successful up-sell or cross-sell.
Cross-selling and up-selling have been one of the most effective yet proven sales techniques for brick-and-mortar retailers, which is now being widely adopted by ecomemrce merchants.
There are chances that you visited an ecommerce website to buy a product and checked out with two more products in your cart.
In most of online shopping instances, the shopper only knows what they want and isn’t sure about what exactly would work for them. In such situations, the seller bears great chances of maximising their sales through smart recommendations. Upselling and cross-selling, when done strategically, can help you make the most out of this opportunity.
Let’s look into the two sales techniques that can help you improve your sale and learn how they differ and benefit your Magento ecommerce.
Defining up-selling and cross-selling
Up-selling is an ecommerce marketing technique used to persuade customers into buying more expensive and better-quality alternatives of the products they considered in the first place.
The retailer simply suggests a higher-priced product offering even more features to the customer so that they are likely to invest more money in their purchase, thus generating more revenue for the retailer.
For example, a customer is looking for a mixer blender. You suggest the shopper an expensive mixer blender set that includes 3 different-size jars but certainly offers more value. So, you just managed to upsell to the customer and increased their average order value while still offering a product of high value.
Cross-selling, on the other hand, is an ecommerce sales technique implemented to encourage customers to spend more by purchasing additional items from different categories which may relate to the product in their cart.
These alternative products are generally displayed after a product has been added to the cart. For example, when a customer wants to buy a mixer blender, you suggest them to buy a stylish glass set as an addition to their purchase and make a cross-sell.
The intention is to induce customers into buying items that they didn’t have in their mind when they first visited your website but are useful to the customer.
How do the two techniques differ?
Concluding the above-mentioned definitions, up-sells are products that you want your customer to buy instead of the product they viewed. They are the improved yet pricey versions of the product your customer intends to buy.
Cross-sells, on the other hand, are items that you would like your customer to buy in addition to the product they have added to their cart. These are tempting additions that may not relate to the product that customer wants to buy but it is likely that they can interest the customer.
Why should you incorporate up-sells and cross-sells into your Magento store?
Up-sells and cross-sells are marketing tools that benefit both online merchants and customers. Not only do these sales models allow customers to obtain as much value as possible from their purchase but they also help sellers promote their offerings. Making customers and prospects aware of your offerings is a great way to instigate a positive heathy customer-seller interaction, which can further contribute to lead generation and sales.
Cross-sells and up-sells also contribute to customer satisfaction and retention to a great extent. When you make suggestions, you help out indecisive customers who are unaware of the availability of better options or products on your site. With up-sells and cross-sells being displayed on the product page, such customers are able to find out items they didn’t know could help more.
Besides, as with all marketing models, there are many opportunities for sellers to make more revenue and boost their bottom line. Several studies have found that incorporating up-selling and cross-selling into your ecommerce website store works like a charm when it comes to reducing cart abandonment and increasing conversion rates.
So, to sum up, the advantages of up-selling and cross-selling include:
- Increasing the number of orders
- Increasing average order value
- Boosting revenue
- Promoting customer satisfaction, loyalty and retention
- Providing exposure to your offerings
When should you implement up-sells and cross-sells?
Up-sells and cross-sells can be worked in before, during and after a customer makes a purchase.
Up-sells are best displayed:
- When the customer has landed on your website and is checking out certain items.
- When you know your customer well and are aware of their persona and interests.
- When the customer is not certain about what they want, and your suggestions can help them make a fruitful decision.
Cross-sells are best incorporated when:
- The customer has added a product to their cart.
- When you are certain about the possible purpose behind making the purchase.
- When you have supplementary items that can help the customer meet their needs and enhance their experience.
The Last word
Failing to integrate up-selling and cross-selling into your marketing model can mean missing out on countless opportunities to make additional revenue and enhance your customer experience.
While one can drive significant sales through these marketing techniques, it is important to realise that online shoppers are smarter than ever. They will know when you are being too pushy and trying to extract more out of their wallet.
Offering value with each instance of up-selling and cross-selling is the only way to win over your customers while bringing in more profit and revenue for your business.
The Magento specialist team at Web Circle can help you create a personalised up-selling and cross-selling strategy. Being well-versed with advanced up-sell and cross-sell functionalities of Magento, our Magento experts can assist you in setting up up-sells and cross-sells in your ecommerce store in the most efficient manner.