Upsell and Cross-sell strategies are important for online stores for better sales. The emergence of eCommerce has changed the process of buying and selling. Besides the complexities of modern eCommerce, some selling strategies like Upsell and Cross-sell are still the same. In this blog, we will try to understand the benefits of these Upsell and Cross-sell strategies and other related points.
What is Upselling?
Getting the customer to spend more money than the amount they have planned at the time of the sale process is called Upselling. There are certain ways to do it. Let’s get more clarity on this strategy with the help of an example.
You could offer customers add-ons to the item they are purchasing on the checkout page. In case you are purchasing a subwoofer, you could offer two subwoofers at a 20% discount. Along with that, you can offer an option of gift wrapping the item for an additional fee after all increasing the average order value is what matters the most at the end of the day.
What is Cross-selling?
According to Shopify, Cross-selling is defined as ” a sales technique that is used to attain a customer to spend more by buying a product related to the one you already bought”.
Upselling and Cross-selling are two different strategies, so don’t get confused. If we define these strategies in simple words then, upselling involves selling an expensive item or upgrade to a customer whereas cross-selling is about offering an additional complimentary product.
How important are Upsell and Cross-sell strategies for eCommerce?
Upselling and Cross-selling are strategies that offer great benefits, one of them is higher sales.
To solve issues, customers purchase products as well as services leaving aside impulse buys. Although they are aware of the problem, however, might not be aware of the best solution to the problem.
Upselling or Cross-selling when done right helps buyers find more value than what they were expecting. Further, these strategies can lead to an increase in revenues up to 43% and even improve customer retention.
Cross-selling and upselling increase your average order value. These strategies even help in creating revenue and profit at a very low incremental cost.
As per the marketing metric study reports, the probability of selling to an existing customer is 60-70%. Furthermore, the chances of selling a new prospect are 5-20%. Moreover, upselling to customers who are already existing is an extremely cost-efficient way to increase lifetime value.
Knowband modules that can help in upselling and cross-selling
Related Products Module permit store admin to showcase the related product items depending upon the product items that are available in the cart. Furthermore, Knowband offers the module for different eCommerce platforms that are listed below.
Gift the Product is another great way of attracting more customers and increasing sales. This module makes your customers feel special by providing them a gift while they are completing checkout and the most essential thing is, gift of the buyer depends upon the total cart value. Platforms of which Knowband offers this module listed below.
Knowband provides Gift the product module for different eCommerce platforms.
Gift cards are similar to prepaid debit cards with money for future usage. Furthermore, Gift cards used in both ways- online and in person. Moreover, there are eCommerce platforms that offer Gift cards on their eCommerce store with fixed as well as custom amount options.
Magento 2: https://www.knowband.com/magento-2-gift-card?search=Gift%20cards
Final Thoughts on Upsell and Cross-sell strategies
Before wrapping up, there are a few tips that we would like to share with you. The first tip, use Cross-selling more on the checkout page. This way customers can tap into impulse buying. The second tip, avoid bombarding customers with too many choices as this can distract them and they will end up abandoning their cart.
In case you find any issue with above mentioned Knowband modules, feel free to write us at email@example.com. Along with efficient modules, Knowband provides efficient post-sales support to the customers. Moreover, we are available 24*7 to resolve your queries.