The success of a B2B eCommerce business falls a lot on the execution. If you get the right mix of features, traffic, customer service, and design, then revenue will soon follow.
That is not to say that E-commerce businesses are not full of uncertainty, not every trend is proven to drive revenue. Although, one trend may help you to drastically increase average order value (AOV), this trend is through Up selling and cross-selling.
Up-sells and Cross-sells are a very effective sales approach that has been used by a number of business entrepreneurs. Previously brick and mortar retailers make use of it all the point of sale, but oddly enough the approach is even more effective through online selling.
Why? Because marketers can abuse a vast amount information and analytics, to create robust algorithms that meets your customers' needs the second they land on your e-Commerce website.
However, many merchants fall short in up-selling and cross-selling execution. This post will cover the top ways to make a successful sales campaign while outlining the top CMS platforms that offer this functionality.
Role of Up selling and Cross-selling in E-commerce business
Up-selling is when a retailer presents the buyer to a better version of a product that is being reviewed or shortlisted by the purchaser.
In the process, the retailer invites the buyer to look at bonus products in association to the already planned product purchases - attempting to do a bundled purchase, in turn escalating the value of their checkout.
Why is Up selling and Cross-selling important for E-commerce business?
The clear-cut answer to this question is to boost sales.
Here one needs to understand that strategies are not meant to clear up your store stock and get limitless orders. These strategies are most effective when used to help customers find associated products or upgrade, in return boosting sales.
If Up-sell and cross-sell are done correctly, it can:
- Boost customer withholding.
- Perk up the average order and customer value over time.
- Increase repetitive buyers.
- Increase word of mouth selling.
- Increase Return On Investment (ROI).
- According to the latest marketing studies it is revealed that it is easier to sell products to existing customers than new buyers.
Step by step process to Tips to Do It Correctly
Whether you make a decision to Up sell, Cross-sell or both, great execution should always remain your focus.
Follow these 5 basic rules before setting-up Up sells or Cross-sells process:
1. Only offer Up sells or cross-sells strategies only to buyers that are based on logic. For instance, if a customer is planning to purchase a new laptop, cross-selling a mouse/laptop cover might be a good idea.
Conversely, if a customer searched for a laptop in the price array of $1000, then you can Up sell a superior device to the customer. This up-sell provide a better customer experience instead of the inexpensive device that the customer may have bought previously.
2. Divide your audience. Divide your audience by pain points and needs. Instead of relying solely on their product viewership, base up-selling and cross-selling tactics on their individual needs.
When you are showing a customer a new product, they most likely will not know what it is. Offer a short description that quickly outlines what it is, what it does, and the benefits of its ownership.
4. Implement cross-sell and up-sell strategies on checkout. Similar to the impulse buys at a grocery store or any point of purchase. Small add-ons or up-sells may be great right before check out.
5. Only increase shopping cart value 20% of the customer's original shopping cart value.Studies put forward that if the final cart value including up selling or cross-sell product goes further than 20% of the actual cart value then the customer will either pay no attention to the offer or will simply discard his\her cart.
Top E-commerce CMS solutions use these extensions:Magento
While Magento is one of the best E-commerce platforms in the market, this site already has the option to manually setup Up sells and Cross-sells. The automatic related products extension take it a step further by using predetermined rules to set up certain relations in between displayed products and connected items.
The strategy of setting up infinite rules for each product makes this a mandatory feature for almost any online store if you are looking for a self-evolving product suggestion process.Shopify
Do you know that Product Up sell is one of the most thriving Shopify apps for creating an Up sell process in Shopify? With more than hundreds of reviews, this app is full allows you to set up appropriate up-sell offers and add-on products based on consumers shopping cart content value or even an amalgamation.Ecompreneur
With a number of active downloads and positive ratings, this platform lets you set up relevant up sells and cross-sells items for every product.
In addition to this, they have experts available to help business setup built around thier unique sales process.
BigCommerce can add this feature through their app marketplace. It is simple to setup, provides infinite up sells including diverse promotions based on diverse conditions.