Upselling and cross-selling approaches in eCommerce
Business growth depends much on a loyal customer base, with positive user experience. And upselling and cross-selling techniques help the purpose; boost customer satisfaction rate and increase revenue.
Amazon, in 2006, stated that upselling and cross-selling contributed 35% of their generated revenue. And according to one of the Forrester Research analyst, 10-30% of eCommerce site revenues are responsible for product recommendation. And today it is 2020, so, there is a high possibility that upselling and cross-selling could work for big to small companies, including yours.
In this article, we will discuss the basics of upselling and cross-selling and how it benefits both businesses and customers. Keep reading for useful tips and recommendations.
Identify the selling terms –
- Pre-sell: A customer finds a product or service you offer and gets interested and looks into the details.
- Up-sell: A customer checks out a product they find suitable; you recommend another related product with more advanced features at a little higher price. This product can prove to be more suitable.
- Cross-sell: A customer is about to buy a product and you recommend some accessories/complementary/warranty at an additional cost. These are products your customer might need.
- Post sell: A customer had bought some products from you recently. Based on the purchase journey you offer them some related products on discount via the mail.
Up-selling is the strategic method to sell an expensive version of a particular item a customer is buying. This product has a higher value and added features.
Cross-selling is a strategy to sell related products based on a customer’s cart structure.
Both of these are often considered unethical as a practice of squeeze selling. However, if done in the right way, both businesses and customers can win, and every white-hat marketer would agree to that. It can be the helping hand to a buyer for successful shopping.
How can up-selling and cross-selling help?
Improvement in Customer Retention: Keeping aside impulse shopping, most people look for products that solve a purpose. And when Steve Jobs said ‘people don’t know what they want until you show it to them’, he was right.
A customer has a situation at hand, and he knows it needs solving, but do not know the best way. Upselling and cross-selling can offer what is best for them and turn out to be valuable. If correctly done, your business becomes a credible ground and the customer is retained.
Increase in Order value and customer lifetime value: Marketing Metrics reports that there is a 60-70% chance of successfully selling to an existing customer and only 5-20% for new prospects. Upselling increases the LTV or Lifetime Value of the existing customers.
Cross-selling on the other hand increases the order value by promoting additional products or similar.
Practicing upselling and cross-selling with Customer Support
With effective customer support services, any business can make upselling and cross-selling a fruitful reality. Here are some tips on how to make this happen and still maintain positive customer experience.
- Offer what is necessary
Whichever alternative you upsell, it should meet the needs of your customer. Though customer support calls are not for product pitching, effective assistance matters and the customer might consider it.
- Show value
Highlight the value of the product to the customer via the customer support agent. The customer will likely follow the recommendation and will be grateful post-purchase.
- Have insights for relevance
Each customer has preferences and so does a business. Loyal customers generally keep in touch with support services. From recorded conversations, agents can learn more about customer interest and improve upselling.
- Maintain genuine offers
Upselling must never be misleading. If a customer has a moderate budget, it is not necessary to push sell something double the price. This only creates a negative experience and downgrades brand image.
Customer support must value their customers and upsell or cross-sell only when relevant. Oftentimes, a successful business is not about the money but a loyal customer base and value.
Need top-notch support service with an upselling and cross-selling approach? If you are looking to outsource eCommerce customer service, it is essential to look for a trusted company who values customers and understand upselling and cross-selling. We at Technokrats believe in a dynamic and emphatic approach when dealing with customers.
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