Increase your revenue by upselling and cross-selling

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A way to increase your revenue it’s by increasing your average order value. A simple way to do that is through upselling and cross-selling your products. Upselling is when the seller encourages the customer to spend money by recommending a higher priced alternative, upgrades or add-ons of the current consideration. A cross-selling is when you recommend that complements their existing purchase but its from a different category. The problem is that savvy buyers see right through the “You may also like…” and often skip the additional purchase. To really see success with your product suggestions, there’s an integral part of the formula: customer delight. When you can convince the buyer that your suggestions are for their benefit, then you can master the art of upselling and cross-selling.

Use the technique that will get the best results.

Upselling works 20 times better than cross-selling. Buyers have already a product in mind, and when a product or service that makes it better is offered, they can usually get on board. For example: extra services such as protection plans, tech-support. But when up-selling isn’t an option, a cross-selling suggestion could still make the sale better. Like in bundle sales which are often sold at a discount in order to raise the perceived value of buying multiple products at once. Displaying cross-sells at check out could increase sales by a 3%.

Offer Upsells and Cross-Sells that Make Sense

If the suggestion of an upsell or cross-sell does fit the original purchase, it could derail a purchase. Your suggestion has to fit the buyer’s exact needs at the very moment he or she plans to buy. Otherwise, you could lose it all.

Keep It Honest
If buyer feels at any point that something’s not quite right, they’ll bolt. The more open and honest and transparent your site is during the purchase process, the more likely those buyers will hang around to finish the purchase. Some sites keep a running tally of the purchases, which can be accessed at any time. This lets the buyer know how much money has already been spent and maybe let them know they have a bit more in their budget. If that amount is unclear—as in the tax and shipping costs aren’t included—then buyers might get a nasty surprise when it’s time to check out and probably won’t make that upsell purchase or may not even finish the purchase at all.

Remember, upselling and cross-selling should always come second to the primary purchase and you’ll be just fine.


Source: Hubspot