We often read plenty of stuff about dynamic remarketing, traffic, awareness and other useful campaign objectives and strategies that are parts of our business. But how about cross-selling and upselling? Have you ever used them in your strategy? Let’s see first what it is and then how to use them more effectively!
Cross-Selling
You’ve just picked a tennis racket up and while reaching the checkout you see some good deals for tennis balls. You thought that hmm ok that’s a good chance to buy them with my new racket. Well, that is a purely cross-sell offline action! Similarly, you can implement a cross-sell strategy for your online purchasers for a specific type of product. If you sell bicycles for example, you can retarget the users who have purchased from this campaign showing a similar product this time – eg helmets – that might want to buy.
Some other relevant example pairs might be:
tennis shoes with tennis rackets
party dress with party shoes
Iphone with airpods or cases
If applied effectively, cross-selling strategy can lead to up to 30% increase in your revenue, so this is a serious matter for your performance. After all, don’t forget that all successful physical stores have structured their shop in that way so visitors can shop many relevant items at a time. You always reach the checkout with full baskets so it is quite similar for online shopping!
How about Upselling?
Now let’s imagine again that you are in the same store and you just got the racket you want and are going towards the checkout. But the salesman has seen that you’re going to buy it and stops you: “the racket you got is perfect but check this one, it is the same as this with even better material and two years guarantee, it will cost you just more 30€”. You think, omg it’s even better and I like it – I am gonna buy this then. That’s pretty much the concept of Upselling. In fact what it does? It gives the opportunity to sell products of higher value or sell extras such as guarantee or full service options for services.
Some examples of Upselling can be:
Basic Insurance Plan – Full Insurance plan
Rent a car of x cost/day – Rent a car of 2x cost/day
Tennis racket made of aluminium – Τennis racket made of graphite (more expensive)
Strategic Upselling is in fact a great way to increase average order value, especially when your offers seem appealing to the shoppers. There are quite many interesting strategies which are going to be discussed in our next articles.
Generally comparing both strategies the goal is quite similar: drive more sales from each and every single visitor. What’s different? The approach. Upselling is selling an upgraded version of a product or service while cross-selling mainly focuses on selling more different products to a customer. Which strategy is more effective? Well that depends on your product range. If you sell many products in a particular niche then cross-selling is more meaningful to you. Instead, if you have one type of product then upselling probably makes much more sense to your strategy.
If you want to know more about the two strategies do not hesitate to contact us!