How to increase your revenue through upselling and cross selling
TIPS TO START UP- AND CROSS SELLING SUCCESSFULLY
Upselling and cross selling are two important terms in sales. Let's start at the beginning and explain the difference between the two.
Upselling is convincing the customer to purchase a more expensive product than the one he had originally planned to buy.
Cross selling is selling an additional product or service to a customer, often something that relates to his first choice.
It’s always nice to generate sales but if you don’t up sell or cross sell, you’re probably leaving a lot of extra revenue behind. Customers often don’t realize it, but they are definitely triggered by the recommendations companies give them.
SHOW THE CUSTOMER THE EXTRA VALUE
The product that you upsell or cross sell should meet the expectations of your customer. There is no point in trying to sell a new pair of shoes to someone who’s looking to buy a snapback. If the product you offer combines perfectly with the product the customer is looking for, the chances are high that he will buy both.
It’s important not to exaggerate when upselling or cross selling. If a customer is looking for a sweater of €30, don’t try to sell him one of €200. By doing this there’s a big chance that the customer will experience this as extremely dishonest, making them leave your store and buy nothing. Some sources speak of a maximum of 25% extra value. Try to trust on your gut to feel how far you can go with your type of customer.
TIMING IS EVERYTHING
Try to find the perfect timing when you upsell or cross sell. Don’t try to push the customer the second he enters your store or website. Find an appropriate time to try and make a move. If you’re too pushy, chances are the customer will leave your site or store. A good time to do so is right before they check out. That’s when they are most open too up- or cross selling.
BUNDLING IS WINNING
Try to sell certain products as one set. Make sure to add a small advantage for the customer and there’s a high probability that it will sell like hot cakes. Make sure you add photos of the combination to make it more visual. If the customer sees a model that is wearing the set he will have a better picture of what it looks like, making it more likely that the customer will buy the entire set.
Zalando does this a lot. On the picture below you see how they try to sell a complete jogging suit from Adidas when you really only wanted the jogging pants.
USE THE DATA YOU HAVE
As explained in our blog about the importance of data, it’s important to use the data that you have in a good way. You can keep track of the products your customers are interested in. The sales numbers are one important way to keep track of popularity of your items. Use that information to show customers products in which they really could be interested in. This will definitely increase your sales and revenue.
Make sure to read our blogpost about the importance of analyzing your data in fashion e-commerce.
Increasing your revenue through upselling and cross selling is an extremely important part of sales. These upsells and cross sells are real money makers in terms of raising the average basket value per customer. Try to fulfill your customers needs by giving them what they want, and your company will only benefit from it.
- Give customers extra value with your upsells and cross sells
- Don’t exaggerate in trying to boost sales
- Find the perfect timing to sell something extra to your customer
- Bundle multiple items into one buyable product
- Use all the data available to personalize your offers