The Art of Cross-Sell and Upsell

The Art of Cross-Sell and Upsell

Cross-selling and upselling are terms that you will often hear in the eCommerce industry. Both strategies aim to increase the average order value. However, their approaches differ. Cross-selling encourages customers buy additional products or upgrades to the product they are considering purchasing.

The right mix of products and services for eCommerce businesses can help increase their profitability, encourage repeat purchases, and foster brand loyalty.

Wix stores which display related products on their product pages have an average of 43% higher sales transactions

This article will explain the differences between cross-selling and upselling and show you how to use them with your Wix online store.

Are you interested in selling online? Start an online shop today. This article will help you grow your business.

Cross-selling and upselling

Let’s begin by defining some key terms: upselling, cross-selling and bundling.

What’s upselling?

Upselling refers to when you convince customers to buy more expensive models or other products. You might suggest that a customer buy a laptop with more storage and better resolution. Read more: Bigcommerce upsell

What’s cross-selling?

Cross-selling allows you to sell additional products to customers who are already purchasing the same product. You might suggest that your customer buy a docking station or mouse if they are buying a laptop. Read more: Bigcommerce cross sell

What’s bundling?

Bundling refers to when one product is sold with other complementary products. Often, the price of bundles is lower than when they are sold individually. Example: A candle shop offering a discount when you buy 3 or more candles.

Each of these pricing strategies should have the goal of adding value to customers by offering better or complementary products. Although it is true that the goal of a business is to increase average order value, it is important to think about which option provides the greatest value to your customers. Consider your customers’ needs to help you make a decision. Then, respond to them by offering products that truly meet their needs.

Why is upselling and cross-selling important to your business?

For eCommerce businesses of any size, cross-selling and upselling are valuable strategies. Merchants who are mindful of the needs and wants their customers and their product offerings can build a mutually beneficial relationship that benefits both parties. Cross-selling and upselling are both possible if done correctly.

01. Boost average order value

You can increase the order value by adding cross-selling and upselling to your sales mix. Customers will be more likely to buy if you offer them relevant offers and increase their overall purchase value.

Both the customer and business benefit from these pricing strategies. The customer receives a better product or a complementary item and the business earns more. A customer will feel more satisfied after purchasing an upsell or cross-sell. This will increase their likelihood of returning to your store. You will see an increase in the customer’s overall purchase value over their lifetime.

02. Encourage repeat purchases

Encourage repeat sales is one of the best ways to grow your company and increase customer retention. Cross-selling and upselling are ways to provide the best solution for your customers’ needs. This will increase their likelihood of returning to your store and becoming repeat customers.

It can be 5x more expensive to acquire a new customer than to retain an existing one. Upselling and cross-selling are great ways to cut costs on eCommerce marketing and drive traffic to your online shop . You should also consider that increasing customer retention rates just by 5% can lead to a 25% increase in profits.

03. Create brand advocates

Your brand’s secret weapon is its advocates or fans. This is especially true in today’s world where reputation is so important. Even though we’ve never been to a bad business, we have all heard about it and decided to steer clear. Focusing on customer experience and providing value for money through pricing strategies like upselling or cross-selling is one of the best ways you can build genuine brand advocates. Customers who feel valued and have a positive experience with your brand will be your greatest advocates.

Forge To Table, which sells handcrafted kitchen knives has successfully integrated cross-selling into its eCommerce strategy. They were able offer customers better value by creating bundles specifically for cooks. A section with appealing Related Items encourages more browsing, which in turn leads to additional purchases. Their 2020 fourth quarter sales increased by 345% year-over-year thanks to this strategy.

Deciding whether to upsell or cross-sell

You now know the difference between upselling and cross selling and how they can affect your business. Learn how to master these skills in your online shop. There are some key points to remember when it comes to choosing the right mix of products for your business.

Get to know your customers

Think about your customers before you decide which strategy to use. Also, consider why they shop at your online store. The following questions will help you to answer them:

  • Which products are they interested in buying?
  • What does this tell us about them and their needs.
  • Which demographics are they?
  • What are the shopping habits of similar buyers?

Use tools such as Wix Analytics for answers to your questions to help you make informed business decisions. You can use a behavior pattern such as customers buying certain products in a particular order to guide your strategy.

Next, look through your inventory and plan your product offerings. You can identify the most expensive products that you can promote as an upsell or products that work together as cross-sells, as well as the products that you can bundle.

Research shows that it is easier to sell and convince customers to purchase a better version than the one they already own. A shopper buying a razor might be more likely to buy a premium model because it is something they will use often. You should also check your analytics to determine if your customers have the financial means to buy a more expensive product. If your audience is older and has more disposable income, you can upsell them at checkout.

Upselling is not an option for all businesses. Your store may not be able to stock a product that is more expensive. Cross-selling and bundling are great ways to do this. If they perceive additional value, the same customer might be persuaded to buy extras like shaving cream and post-shave lotion.

 

Cross-selling is a strategy used by Spanish clothing brand CeliaB to increase their average order value. A gallery of Related Items at the bottom each product page offers beautiful accessories that customers can add to their shopping cart.

You can upsell and cross-sell your Wix store by adding a Related Products Gallery to your Wix store or using a custom solution from Velo by Wix.

To add a Related Products Gallery

  1. Click on the Add icon to the left of the Editor.
  2. Click on Store
  3. Click Related Products.
  4. Drag the Related Products element onto the page.

To show customers products most closely related to yours, you can add the Related Products Gallery to your product page. The widget can also be placed on your Cart Page or Thank You Page to encourage customers buy premium products and additional products.

These are some tips to make the most of a Related Products Gallery.

  • Include the most popular or reviewed products.
  • Your gallery should stand out on your site.
  • Include testimonials from customers.
  • Describe why customers should purchase an alternative or complementary product.
  • Keep your gallery clean. Exercising too many ideas can cause customers to lose sight of the point.

 

Show your customers that is valuable

It should be easy for shoppers see the value you offer. Does this bundle cost 20% less? Amazing. It’s amazing. Tell them why they should upgrade or purchase complementary products. They should feel that you are offering more value than just charging them more.

Make bundles that are relevant to your product so that customers don’t have to search and can go straight for checkout. Ruby Love customers have the option of purchasing selected bundles that include swimwear and underwear at a discounted price. Ruby Love and its shoppers both benefit from this better value deal. Ruby Love loyal users can save money on products they love, and the bundles become top-selling items.

The Multiorders App allows you to create product bundles quickly and easily. The app allows you to sell multiple items at once, while also selling individual items. You can keep track of inventory levels and have flexibility. The inventory levels for all the bundle products are automatically adjusted when a customer purchases the bundle. These are the steps to create bundles using Multiorders.

 

Request customer feedback

Customers can use testimonials, case studies, and reviews to provide an objective view beyond your own. These are great for showing how customers have used your bundles or related products to meet their needs. You might also learn from customers what isn’t working. This, while disappointing, can help you to improve how you curate related products and bundles in the future.

 

In just a few easy steps, you can add customer testimonials to an online store.

 

Add a testimonial strip on your website

  1. Click on the Add button to the left of the Editor.
  2. Click Strip.
  3. Scroll down to the Testimonials Presets.
  4. Click on the testimonial strip you wish to add or drag it to the appropriate location on your website.
  5. Modify the text.

You can also allow customers to share their opinions about your products by including a review app (e.g. Kudobuzz Review app) to your website.

The word-of-mouth approach is a great way to increase sales. Customers can share their feedback and give curious shoppers more information about your products. Your eCommerce SEO rank will be improved by positive reviews. Your store will be easier to find online if your reviews are easily indexable via search engines.

Successful cross-selling and upselling strategies

After you have chosen your strategy, think about the communication methods you can use to communicate that added value to existing and potential customers.

 

Get shoppers engaged with live chat

Use a live chat application like Wixchat to get to know your customers. It’s easy and it works.

Wix stores offering live chat have 8-12X higher revenue and 71% more sales if they recommend products via live chat.

Chatting with customers via live chat is a great way for you to communicate in real time at all stages of their shopping journey. It can be used to identify opportunities to cross-sell or upsell. It is also useful to ensure added value is at the core of everything you do. You can learn about your customers and recommend products based upon their past purchases. Keep your cross-selling and upselling efforts simple and value-driven.

Recover lost sales

To continue your cross-sell and upsell strategy, connect your store to the Appsell application. Appsell is a thank-you page builder app that allows you to optimize your post-purchase thank-you page. You can customize the design to fit your store and offer exclusive discounts or coupons for product recommendations that customers can add directly to their cart. This strategy will increase your customer engagement, sales, and customer lifetime value. It targets happy customers at a “shopper’s high”, which can make them more likely to purchase something else immediately.

The path from shopping online to checkout can be confusing. Online shoppers can become distracted and may decide to reconsider a purchase. Did you know that 88% of carts are abandoned during checkout? An automated abandoned cart email can be sent within hours to days after a customer abandons their cart. This is one of the best ways to recover lost sales.

 

Wix Stores that have active abandoned cart recovery automations increase their sales by up 29%.

 

To increase your chances of them returning to your store, you can include additional cross-selling or upselling product suggestions in the email. Avoid overwhelming customers by offering too many options. Simpler is always better.

Reward customers who are loyal

Congratulations! You have convinced a customer that they want to purchase a complimentary product or a higher-end version of a product. But what next?

Your customer should feel satisfied after purchasing. This is where your eCommerce Email Marketing strategy comes in. This is the best time to:

  1. Make sure they are aware of any support needed after the sale.
  2. Ask them to write a review about your store
  3. Reward them for being loyal and trusting you with their recommendations

It’s a great way for customers to return to your site by sending automated email. Wix allows you to customize your post-purchase emails. These can be thank you emails or emails asking customers to leave reviews.

A great time to reward your customers is after purchase. You can send a thank-you message or offer a discount on your next order.

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You can increase sales by connecting loyalty reward apps like Smile.io and to an eCommerce store. Customers will be able to access exclusive perks or discounts.

Coal and Canary are a multi-million dollar company that sells luxury scented candles. They use a variety of eCommerce marketing tools in order to keep in touch with their customers and reward them for being loyal. The homepage allows shoppers to see that they can contact the company via Live Chat, or become a member of a store and earn loyalty points with Smile.io. Canary and Coal have developed a strong email marketing strategy that uses great design and discounts to encourage customers to buy.

Customers are your greatest asset

Loyal customers are the best customers. They keep coming back to your business and spreading positive word-of mouth reviews.

source https://www.wix.com/blog/ecommerce/2021/07/upsell-cross-sell