When it comes to increasing sales, you don't have to break the bank. A clever strategy that every online store should consider is upselling or cross-selling - pushing existing customers towards higher value products as opposed to attracting new audiences. This savvy approach can generate more profits with minimal resources, making for a sustainable and cost-effective model of marketing growth.
With modern statistics showing that more than half of internet buyers are surprisingly likely to purchase a second item during checkout, it pays for ecommerce stores to act as real virtual assistants. The Smart Related Products module for Magento 2 helps store owners anticipate customers' needs by informing them about products at the most opportune moment. Don't rely on the customer's independence; explore enhanced cross-selling opportunities today!
Upselling: everything you need to know
Upselling is the technique when the online store offers to buyers to choose and purchase another product instead of the chosen one. It should be from the same category, or even almost in fact the same, but placed several steps forward in functionality or by other criteria. Thus, the purpose of this technique is to increase the purchase amount in the checkout. But remember that the price of an upsell product must be no higher than 25% than the cost of the originally selected product. Otherwise there's a risk to alienate the buyer, who can refuse to make an online purchase at all.
The use of Upselling is relevant not only at the step of choosing a specific product, but also during the checkout. While the buyer has not made a purchase, there's a chance to persuade him to choose a more profitable option for you.
How does Upsell attract buyers?
Upsells offer customers a variety of choices to enhance their shopping journey, presenting them with well-selected options such as:
- most popular products
- top sellers
- personalized recommendations
- similar items
Customers are sure to be intrigued by the variety of goods presented, and judiciously crafted promotions can effectively catch their attention. To motivate buyers to select a more expensive option, product cards or personal accounts should contain alluring offers that draw customers in.
Additional perks could be one of the motivators for customers to accept an upselling offer. Among the various bonuses that can be available to customers, it is worth noting the most attractive ones:
- additional maintenance/installation or connection;
- official guarantees;
- promotional codes;
- free shipping
Such additional bonuses encourage clients to consider to change their choice, even if it means buying a more expensive option than in their original plan.
For example, an online watch store in the category "Similar products" should have a selection of watches from different brands. At the same time, a pleasant discount applies to more expensive models. Thus, it seems to the client that this position is much more profitable than a more straightforward and cheaper model without a discount.
An upsell is always a story about the buyer's choice, but sometimes it doesn't refer to the complete replacement of the product with a more expensive one. The buyer can choose from several options at once, and among them, you can add the ability to select a specific volume or quantity of an already selected product.
For example, when one chooses a perfume or cream, you should offer several options of packages of different sizes. As the volume increases, so will the price. It's also an Upsell but less drastic. In this case, remember to use various excellent bonuses that we have already talked about earlier.
Comparing multiple options
An essential feature of online stores is that the buyer can independently learn about all the exciting product characteristics. Often a buyer, who has yet to decide on a product, has to choose among several similar items. In other words, a buyer should compare products. Of course, you can consistently offer assistance via an online support chat or phone number, but some stores add a specific feature to the store's functionality. In other words, they added a module that can compare the characteristics of several products at once.
With this option, your store will be much more convenient for buyers who want to decide what to buy. You can also set up an opportunity to compare recommendations from Upsell products. Thus, the buyer can compare the cheaper version of the product with a more expensive one and note the presence or absence of essential characteristics and features. As a result, the buyer can see why a particular model is more pricey than another and what are the advantages of using a more expensive product. The benefits can be so attractive that it'll be difficult to ignore the temptation of buying a more expensive one.
How does Cross-Sell attract buyers?
Another popular method for increasing sales is cross-selling. This technique involves additional offers of related accessories or services that are perfectly combined with a chosen product. At the same time, the method's goal remains unchanged - to increase the number of buyer purchased positions. However, you need to pay attention to the fact that the proposed Cross-Sell products should fit perfectly with the product. It's also necessary to come up with exciting slogans that will draw the attention of the buyer, like those:
- "Customers often buy with this product:"
- "This may be useful/helpful to you:"
- "You will also like:"
- "Specially selected for you:"
аnd so on.
Crafting an effective and unforgettable phrase requires the right blend of originality and intelligibility - don't be content with run-of-the-mill language! You can use Cross-selling in the form of special push notifications that pop up on the product card page or during the checkout process.
For example, a client of an online store buys a computer, and as additional "bonuses," the store offers speakers, headphones, a wireless mouse, and other equally essential computer accessories. It's a very sound decision, as the buyer immediately sees what the computer "combines" with. Therefore, he should save time on long searches for the right products throughout the catalog (or even on other online stores! No, No.).
Almost every product you can match with some other accessories. Such combo sets can be various:
- Orthopedic mattresses for a new bed.
- Cartridges for the printer.
- Mouse for laptop or computer.
- A case for a mobile phone.
- Mosquito net for plastic windows.
- Assembly service for wooden furniture.
Upselling and cross-selling are one of the most critical opportunities in the modern marketing industry. Their main feature is to guarantee benefits not only for the owner of the online store but also for the client. Although these methods imply completely different work principles, some still need clarification. It's important to distinguish these two methods.
Distinctive features of Upsell
This strategy allows the online store to sell its customers products of high quality and higher value. Thus, the main task of upselling is to sell more expensive items with higher parameters or additions.
Distinctive features of Cross-Sell
In the case of cross-selling, the buyer is offered to purchase complementary items in addition to the main product. The most effective time to provide Cross-selling products is either at the stage of choosing a specific product or at the checkout. The main idea is that the proposed cross-sells in no way affect the basic properties of the selected product but can affect the service life, add features, complement the product's appearance, etc.
In some situations, it's relevant to apply these two techniques on the same website simultaneously. But this step should be thought out as much as possible. The client shouldn't perceive these techniques as something that "presses" on the decision and "forces" them to choose without desire.