How to up-sell and cross-sell in retail?
Upselling and cross-selling are considered to be two most effective ways to boost revenues for any merchants. Upsell is used when store owners want to persuade customers to purchase a more expensive version of the original product, while shop admins use cross-sell to encourage consumers to buy more products on impulse. Although these two recommendation methods have some differences in characteristics, they share the same purpose of increasing sales for a store. In this post, I will focus on how to help store owners make the best of upselling and cross-selling in retail.
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Make sure you provide customers value
It is clear that when you are trying to persuade customers to upgrade their products or buy more items, you want to obtain more benefits from your business. However, remember that customers are sure not to make a bigger purchase if they see no advantage in this deal. It means that beside your own profit, you have to provide value for consumers to encourage them to buy more. So, there are three points that you need to keep in your mind before making use of either upsell or cross-sell products.
Your recommendations are useful
It is of utmost importance that your suggested products are relevant to searched products by customers. Make sure that when shopping doers take a look at your suggestions, they can see the relations with the original products. Therefore, try to make your decision wisely by choosing better versions and relevant items.
Customers have demands for other products
Once you decide the appropriate products to recommend for your customers, make sure that they need those. Even your suggestions are suitable, but buyers have nothing to do with it, it very hard for you to encourage them to purchase more. Therefore, remember to spend time getting to know about how your customers want to use your goods.
Buyers are willing to spend more
There are some customers that show a strong intention to buy no more products or their budget is tight. In this case, do not try to upsell or cross-sell any items as it may turn into an annoyance for them and force them to say goodbye to you forever. Therefore, before start upselling and cross-selling, ask yourself and observe to figure out whether your customers are willing to buy more.
Cross-selling via email is a typical and effective strategy that you should think about using.
Ensure customers see provided value
Once you know that your deal brings value to not only you but also your customers, remember to notify all the benefits that your buyers can get. It is sure to be a more convincing determination for shoppers to buy upgrade products or related items. The benefits to offer to your customers can be a discount voucher or an extended warranty or a loyal card or reward points.
Think about the rule of THREE
It is believed that when you provide buyers with three choices, they are more likely to increase their order’s value. These options are known as Requested product, Alternative product, and Dream product. Requested product is an item asked by shoppers. Alternative product is a little better product with a higher price. The dream product is an item that is considered to be the best choice with much better quality and highest price among three options. Among those, the dream product is often expected to be bought by customers. By giving three options, you provide the customers the right to choose; however, you know that they are sure to love the dream product. This rule is mostly used to upsell products.
Although upsell and cross-sell product recommendations can be greatly beneficial to a business, store owners need to consider carefully while apply it for their stores. If you are new to e-commerce and struggling in finding an effective marketing tool for your store, Mageplaza Automatic Related Products is sure to not let you down. This extension can help you to easily generate several blocks such as upsell and cross-sell products after a blink of an eye. And now, let start create upsell and cross-sell products block for your own store.
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