In this article, we are going to discuss how you can use the power of up-selling, cross-selling and related products to maximize the potential value of each purchase.
A technique to convince a customer to buy something more expensive, i.e., an upgraded version of what’s being purchased.
This could be as simple as offering a more premium model of the product they’re already buying.
It is tempting to show your customers the upgrades and add-ons that they can have, but bestowing too many choices could disturb your customer’s decision & might sabotage the sale. So, always keep a limit on the number of recommendations you present to your customers and make sure that only the most relevant items should be included in the up-selling category.
Most Common Up-Selling Approach
If you are selling digital devices, entice your customers to buy a device with a slightly higher rate but with many more additional features. If you are selling a camera, you’ll want to offer your customers the opportunity to purchase one with better specifications like Shooting Modes, Depth-of-Field, ISO, image area, etc but with on a higher rage.
Cross-selling is a technique to make your customers spend more by making them purchase a product that’s complementary to what he has already bought.
Whether you are dealing with an online store or a brick-and-mortar one, cross-selling is also a good idea to hike up your revenue. This technique not only helps you increase your order value but also helps you deal with your store’s slow-moving & non-selling products!
Different Cross-Selling Approaches
- When it comes to electronic devices, cross-selling works the best. While selling a digital camera, you can persuade your customers to buy a memory card with it. Or, with a mobile phone, you can ask them to buy headphones. Customers are most likely to grab such offers.
- In a physical store, you might have seen mannequins displayed with the whole outfit from head to toe. This is to make shoppers buy different yet related pieces together instead of just going with one. Similarly, many online stores use the same technique by displaying related products like bags, shoes, accessories on the product description page of a dress to entice customers.
- Product bundling is a good way of cross-selling. Retailers can bundle up similar kinds of products at a discounted price. Moreover, If you are the customer pushing to unbundle the package, asking for a price breakdown is almost always to your favor. The choice is a good thing for you.
- One most common approve is ‘would you like fries?’ approach while buying a burger. Including fries and cold-drink with a burger is cost-effective for the customers & also an approach increasing your AOV.
Amazon has shown how effective the marketing of related products can be. Suggesting items to customers based on what they have bought, what other customers have bought, what customers have recently viewed, you may also like section and more.
It is very important to examine your products & the nature of your customers in order to have the most out of it. If the products in the ‘related products’ section are not relevant to what the customer is looking for, it is of zero worth. Learn your customer’s behavior of shopping and know what products go with what. This could be easily learned from your history of sales in your store.
Implement it right and make your revenue grow by maximizing the potential value of each purchase.
Related Products vs Cross-Selling Products
Many give these two terms the same definition but they are slightly different.
Related products appear in the product description page and these products are meant to be purchased in addition to the one that the customer is viewing.
Whereas, Cross-selling products can appear both in the product description page and in the shopping cart. They are a bit like an impulse buy as you might relate with items at the cash counters in grocery stores.
Sometimes, you can also hide the up-sell and cross-sell products within related items.
Over to you!
Three of the above-mentioned terms can definitely help you increase your average order value. All it needs is to learn your customer’s shopping practices and the nature of the product you are selling.
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