Did you know that an existing customer brings in more than acquiring a new one? In fact, additional sales are a very powerful lever for growing your revenue!
One might think that traditional sales techniques would not be as effective on an online store. The fact is that these practices prove to be just as effective online as in-store, if not more so. In the same way that you add a treat or a bottle of cold water to your basket while waiting at a store checkout, you add a product to your online order. The motivation is different, however: it is the wait that prompts you to make purchases in a store. Online, other reasons lead your customers to do so: reduced shipping costs for a higher cart value, or a discount, for example. This is part of the tips for increasing your revenue thanks to an online store. So let’s see how to implement these techniques to easily increase your online store’s revenue.
Definitions and differences
Upselling
Do you want to buy this barbecue? For €50 more, you can buy a barbecue from the higher range. That is a good summary of upselling: it is a sales technique that encourages customers to spend more than they originally intended. To do this, a more expensive product from a higher range is generally offered.
Cross-selling
Do you want to buy this barbecue? Here is a cover to protect it. Cross-selling is the act of suggesting a product related to an item added to the cart. It is the famous “And anything else with that?” from the baker, also called add-selling.
These two techniques aim to increase the average order value. However, the methods differ and can even complement each other.
Upselling and cross-selling: what benefits for your e-commerce
If you want to increase your e-commerce site’s revenue, these sales techniques are powerful levers. By offering more expensive and complementary items, you increase your revenue. Here are the benefits of implementing them:
- Build customer loyalty by advising them
- Showcase your wide product range
- Increase your revenue
Indeed, these techniques have several advantages. Cross-selling and upselling are there to advise your customers. When a customer visits your site, they are looking for a solution to their problem: “I want to mow my lawn, but I don’t have a lawnmower,” for example. This prospect is therefore looking for a lawnmower; they may even have a precise idea of what they are looking for, yet they are not necessarily aware of all the options available to them. A store that offers a wide range of products and provides good advice is a store customers remain loyal to. This customer also knows about the complementary products you offer and will come back when they need them. The ultimate purpose of these two advantages is to increase your revenue. First, because the average order value increases. Then because a satisfied customer comes back, especially when they know your products.
Upselling strategies to boost your e-commerce
Advice:
To start with, ask yourself the right questions:
- Does this product meet customer expectations?
- Does the product solve the customer’s problem?
Indeed, the key to successful upselling is showing a precise understanding of what your customer is looking for.
Respect your customers’ budget
Offer similar items that cost around 25% more than the item initially sought. This is the average margin people allow themselves when making a purchase.
Observe other customers’ purchases
Trends are a very good indicator for understanding your customers’ current preferences.
Technique:
To make your upsell successful, you need to highlight clear added value. Here is a non-exhaustive list of values, with concrete examples.
|
Values |
Example |
|
A higher-quality product |
The customer is looking for a computer with an i5 processor; offer them an i7 processor by explaining the benefits of the additional power, while keeping the price increase to a maximum of 25%. |
|
Greater comfort |
The customer wants to order a heavy product. Offer them an option that allows this product to be installed directly in their home, rather than basic delivery. |
|
Time savings |
The prospect wants a vacuum cleaner. Offer them a robot vacuum and explain the time saved by automating this daily task. |
|
Additional protection |
The prospect has finally chosen the i7 computer. To reassure them about this purchase, which is more expensive than expected, you can offer them additional insurance. |
Do:
- Analyze each customer to understand their consumption habits
- Present the benefits of the recommended products to persuade them
- Use reviews and recommendations
- Clearly compare the proposed products to highlight the benefits of each one
- Keep it simple: don’t lose your customers by offering a multitude of products. A single recommendation with all the information will be much more effective!
Read also: product pages and e-merchandising: tools for top-notch e-commerce
Cross-selling techniques to increase your sales
Advice
- Once again, you need to ask yourself the right questions:
- What are your customers looking for?
2) Define the right place to offer additional products: at the bottom of the product page, on the cart page, in an email.
3) Take care with the presentation of your recommendations: all the information needed to trigger the purchase must be visible even before clicking!
Techniques
|
Technique |
Explanations |
|
Recommendation based on bestsellers |
Bestsellers are generally small products that meet the expectations of the majority of your prospects. |
|
Recommendation based on the product currently being purchased |
You can assume that one purchase may lead to others: are you buying a coffee maker? Here is some coffee and a descaler to get the best use out of it. And of course, this addition to the cart lets you save on delivery costs. |
|
Recommendation based on the customer’s searches |
Your prospect is about to place an order with you. Before adding this T-shirt to their cart, they also looked at shoes. Why not remind them by offering to add them to the cart in a single click! |
Now that you know all about these sales techniques for boosting your e-commerce site, all that remains is to put them into practice. To do this, we advise you to equip yourself with a tool that will allow you to automate product recommendations by tracking and recording your customers’ behavior. With Webmecanik Automation, you can schedule the recommendations you want, based on sales statistics or prospect behavior, on pages or in emails.
