Cross-selling

Which is Better: Upselling or Cross-Selling?

Upselling and cross-selling are obviously very similar.

They both focus on providing more value to customers by prompting them to consider additional products and variations.

And, in both cases, the business objective is to increase the average order value (often referred to as AOV).

So, should you do both? Absolutely.

You should definitely use a combination of upselling and cross-selling techniques on your dropshipping store to maximize revenue.

But, it’s best to focus on upselling first.

Why?

Because according to data from Predictive Intent’s clients, upselling performs 20 times better than cross-selling when it comes to product pages.

The graph below shows that upselling accounts for over 4% of sales, whereas cross-selling accounts for 0.2% of sales.

That said, cross-selling is more effective when presented on the checkout page. In this case, data showed that cross-selling drives sales by up to 3%.

Bottom-line?

Start upselling first, and then add cross-selling tactics afterward.

Okay, with me so far?

Start cross-selling for ecommerce

Now that you understand cross-selling and how it can increase your average order size and grow your revenue, it’s time to get started.

Begin by identifying which products you’ll focus on first and then determine how you’ll ask customers if they’d “like fries with that.” In other words, what related products, complementary products or services can you suggest to a shopper that’ll add value to their purchase or improve their experience?

As you experiment with different methods of cross-selling, continue to test and improve your strategies to see what works best for your store and your customers.

What is cross-selling?

Cross-selling is based on offering the customer goods that are complementary to other things they have purchased or about to purchase. 

Cross-selling is a risk-free chance to boost sales. The worst that can happen is that the suggested product is ignored. The goal of this strategy is to remind the buyer about products that may prove useful and even needed in the near future.

Cross-selling helps to save the customer’s time by making everything available at once. To fully understand this situation, let’s looks at one of the most common examples.

Let’s say you are in a popular chain in the footwear industry. After a long struggle with your own thoughts about buying the right shoes, you go to the cash register to pay for them. At this point, the saleswoman asks:

— Could I recommend our best natural leather protector? Using it will allow you to preserve the appearance of your shoes regardless of weather conditions …

You think about it. You know that this product may be useful to you, but you’re still not sure. Eventually, you give in and add it to your purchase. 

This was cross-selling. While purchasing a basic product, you have decided on a complementary product.

10 вариантов использования метода кросс-продаж для увеличения выручки

1. Ассортимент продукции направлен на комплементарные (взаимодополняемые) товары. Для внедрения стратегии кросс-сейл достаточно связать между собою несколько товарных групп так, чтобы, приобретая дополнительную вещь, покупатель улучшал свойства основной. Есть одно но! «Допы» должны всегда стоить дешевле главного продукта, иначе пропадает его ценность для клиента.
2. Применяйте в роли кросс-продукции товары импульсивного спроса, описанные выше. Так, при продаже мобильных телефонов можно предложить у касс брелоки, гарнитуру, наклейки и т. п.
3. Стимуляция. Делайте сюрпризы за определенную сумму чека. Все любят получать подарки, несмотря на то что понимают: их стоимость заложена в цену покупки и это лишь инструмент маркетинга. 
4. Настройте интернет-ресурс на перекрестную торговлю. Если, к примеру, посетитель задержался в категории смартфонов, покажите в рекомендациях «примочки» для просмотренных моделей.
5. Для тех, кто покупает основной товар, подберите дополнительный, объясняя это тем, что данные товары успешно продавались раньше в этом сочетании. Данный способ эффективен в бутиках одежды, мебельных салонах и онлайн-торговле.
6. Экспертное мнение. Сошлитесь на рекомендации специалистов о том, что основной и кросс-продукт нужно применять в комплекте для повышения качества результата. Примеры кросс-продаж – шампунь вместе с бальзамом для волос, зубная паста со специальной щеткой и т. д.
7. Используйте воронку продаж. Ключевое правило cross sell – предложить дополнительный товар максимальной потребительской аудитории.
8. В кросс-сейле вам поможет мерчандайзинг. Разложите сопутствующие товары в одной товарной зоне. Покажите на витринах варианты комплектаций. Основную продукцию на полках чередуйте с дополнительной.
9. Общая реклама на листовках или флаерах. Это регулярно практикуют супермаркеты. Их предложения формулируются так: «Купите чипсы и получите «Спрайт» в подарок!» Этот прием способен быстро повышать продажи. Понятно, что фактически подарка нет и его стоимость заложена в главный товар.
10. Вторая вещь реализуется со скидкой. Опять же человек оплачивает два товара, где стоимость сопутствующего вводится в цену основного. Но помните, что кросс-продукт не должен стоить больше 10 % этой суммы. Данный подход довольно эффективен для товаров со стабильным, неменяющимся спросом.

Introduction

Cross selling and Upselling is one of the most widely discussed concept in marketing analytics. Every other day when you visit a supermarket, restaurant to purchase something, this concept comes into live action. This concept is being taught in every marketing class across the world, thereby students are expected to know of it.

You may be curiously wondering why we have selected this topic of “Cross-Sell”? Well, the answer to this is very obvious. In our experience (spawning several decades) of setting up and training teams, we have conducted hundreds of interviews. And guess what? For our standard interview question of “Elaborate on a project you have worked on from start to end”, the most frequent response has been a Cross-Sell Model! However, when a lot of people were quizzed around the basic concepts of cross-sell / up-sell, they were unable to provide satisfactory answers. They would know the code used, but were unable to explain this simple concept.

So, here we are discussing our version of this popular and important Cross-Sell story! In order to explain the end to end process, we have also provided a case study in the second half of the article. We hope that this article becomes a ready reference for any one interested in implementing cross-sell / up-sell in their organization.

Понятие, виды и особенности кросс продаж

Кросс продажи – что это такое? Это довольно интересный и популярный инструмент, которым пользуются многие бизнесмены, работающие в сфере торговли. Они направлены на приумножение капитала фирмой, занимающейся сбытом товаров.

Если говорить простыми словами, то кросс продажи – это одновременная реализация разных видов одного и того товара конкретному покупателю. Но, скажем еще проще: это дополнительная продажа продукции после реализации основного предмета торговли, в котором заинтересован покупатель.

Кросс продажа имеет одну важную цель, которая заключается в повышении прибыли предприятия. Обычно в этом случае используется инструмент продажи других, дополнительных, услуг или товаров. При этом они не пользуются большим спросом у покупателей, но для фирмы-продавца их реализация является дополнительным источником получения прибыли.

Так, мы разобрались в том, что такое кросс продажи. Теперь давайте рассмотрим их разновидности, каждая из которых имеет свои особенности.

Разновидности кросс продаж

Выделяют 3 вида кросс продаж:

Реализация дополнительной продукции. Это то, о чем мы уже вскользь упоминали ранее. При этом клиенту продается продукт, который никак не связан с основным товаром. То есть, он является отдельным, полноценным продуктом реализации. Такая разновидность перекрестных продаж часто применяется в корпоративном секторе торгового бизнеса.

Рассмотрим небольшой пример. Предположим, у вас есть свой магазин, в котором вы продаете молочную продукцию. Однако вы решили параллельно с этим заняться выращиванием овощей, которые тоже будут предназначены для продажи. Во время обслуживания очередного клиента вы, кроме молока, можете предложить ему приобретение свежих овощей. Скорее всего, он согласится на ваше предложение.

Пакетный кросс селлинг. В этом случае вы к основному продукту прилагаете сопутствующий товар. Отличным тому примером служит покупка мобильного телефона. Так, при продаже смартфона вы можете предложить покупателю приобрести еще и чехол или гарнитуру к нему. Многие клиенты с удовольствием соглашаются на такую сделку. Часто в пакетных кросс продажах используется понятие скрипта продаж.

Скрипт в перекрестных продажах – это модель разговора продавца и покупателя. Этот термин имеет английское происхождение. Script переводится как «сценарий». В сфере торговли модель общения обслуживающего персонала с клиентами должна обязательно содержать призыв к действию: «купите», «посмотрите» и т. д. Колл ту экшн (призыв к действию) должен быть органично включен в разговор. Нельзя навязываться клиенту, либо, что еще хуже, принудительно подталкивать его к покупке дополнительного товара.

Продажа товаров одной категории тому же покупателю. В данном случае кросс продажи – это понятие довольно широкое. Ярким тому примером является репетиторство. Предположим, родители водят к вам ребенка, чтобы вы подтянули его по русскому языку. Но за дополнительную плату вы можете предложить им подготовить ученика к экзамену по литературе.

На заметку. Кросс селл нередко создает проблемы опытным маркетологам. Прежде всего, это связано с тем, что каждый из продавцов своего отдела отлично знает особенности реализуемого им товара. При переводе его в другой торговый отдел появляются сложности. Например, продавцу цветов будет крайне сложно работать в отделе продаж стиральных машин.

Так, мы рассмотрели главные особенности кросс продаж в магазинах разной направленности. Но данный инструмент используется и в других сферах деятельности. Например, в банковской отрасли.

Кросс продажи в банке – это предложение будущему или текущему клиенту услуги в дополнение к той, которую он уже получает в финансовом учреждении. Например, при оформлении зарплатной карты консультанты практически всегда рекомендуют своим клиентам оформить также и кредитный счет.

Кросс продажи в страховании – это предложение оформления дополнительного типа страхования параллельно с уже существующим. Ярким примером является создание страхового полиса ОСАГО. Во время составления и подписания договора страховой агент может предложить вам дополнительно оформить договор добровольного страхования гражданской ответственности.

Это то, что необходимо знать о кросс продажах. Но существует еще один инструмент, о котором нужно знать. Это – апсейл, или upsell.

Magento 2 Cross-Sell / Upsell Products Module Key Features

Display cross-sell / upsell products the way you need

Pick how many products to show so as to keep an attractive and easy-to-navigate appearance of your store. Decide for yourself whether to replace or complement manually added product suggestions with the module recommendations.

Use stats wisely to improve suggestions

To increase the relevancy of automatic suggestions, define the time when the module can collect the most accurate data about your store visitors (for example, peak hours). Based on such data, Magento 2 Cross Sell will show the items that your customers are most likely to add to their carts.

Boost revenue by showing in-stock items only

Cross-selling and upselling suggestions make no sense if they feature unavailable items. Such cases can only damage shopping experience as customers waste time exploring something they can’t purchase. To ensure you don’t miss your selling opportunities, enable the module to automatically exclude out-of-stock products from the list of relevant Magento 2 cross-sells or upsells.

Assign related items for each product

As you edit product attributes, you can manually assign specific positions that will be recommended. They will be displayed on a product page, and you can set certain cross-sells or upsells to maximise the accuracy of recommendation and raise customers’ satisfaction. This task can also be performed via creating rules, in case if there are too many products to proceed them manually.

Maximize profits with analytics

Analyse how each rule performs with Magento 2 Up Sell. Get useful insights and understand which configuration has the biggest success to timely modify your marketing strategy and grow revenue.

Customize upsell/cross-sell block display

This Magento 2 extension makes creating cross-selling and upselling blocks incredibly easy. You can set them at any place of your online store, including categories, product pages, shopping cart. To blend with store content and implement such marketing strategy in an unaggressive way so customers won’t reject it, you can set up a custom block name — for example, instead of the usual ‘You May Also Like’, try ‘This Product Will Perfectly Work With’ to attract buyers’ attention.

GraphQL integration

Due to compatibility with GraphQL you can expose product data like SKU, name, link, image, price etc. to build PWA/JS based frontend. In simple terms, GraphQL support allows you to hide the complexity of existing systems. You can design a frontend that looks like a real app in a browser to create a user-friendly interface.

Summary

And there you have it!

You now know what upselling and cross-selling are, and how to use them to boost your average order value and grow your revenue.

Remember, when creating your upsell and cross-sell offers:

• Always put the customer experience first
• Only promote the most relevant and appealing offers
• Keep your upsell offers to less than 25% of the total cart value

You get three chances to upsell and cross-sell to your customers. These are before they purchase, during the checkout process, and when they purchase.

Be sure to use them all.

And, start with upselling first — remember, upselling performs 20 times better than cross-selling on product pages.

Lastly, don’t forget to take advantage of the incredible apps available on the Shopify App Store.

Do you have any questions about upselling or cross-selling? Let us know in the comment section below – we read all of them!

Want to learn more?

• 10 Ways to Increase Average Order Value
• The Complete Guide to Crowdfunding: The What, Why, Where, and How
• 20 Tricks for Optimizing Your Online Store
• How to Get More Sales With Ecommerce Conversion Optimization

Что такое up-sale, cross-sale и down-sale продажи

Выбрать подход нужно в зависимости от ситуации: категории продукта, его стоимости и других обстоятельств. Продажи up-sale буквально переводятся поднятие продажи. Смысл действий продавца заключаются в том, что клиенту предлагают купить более дорогой вариант продукта. Например, вместо базового набора тренингов предлагают vip-тариф, делая акцент на его преимуществах. Прежде всего, это персональное ведение во время обучения, участие в закрытых клубах и доступ к инсайдерской информации.

Третий вариант увеличения продажи – down-sale. Суть этого способа заключается в том, чтобы удержать покупателя. Покажем на примере издательского бизнеса, как это работает. Компания обратилась в издательство корпоративной прессы с задачей по подготовке ежемесячного корпоративного журнала. Когда менеджер предложил варианты, оказалось, что они не подходят по стоимости. В таком случае можно предложить им альтернативные варианты – дешевле: газета, информационный листок или сократить периодичность журнала на ежеквартальный.

Strategize on Messaging

Why did this person buy from you in the first place? What products did he or she purchase, and what does this say about them? What are their demographics, and what patterns do you typically observe from past buyers of a similar make-up?

Asking all of these critical questions, and spending time digging through and analyzing past buyer metrics will help you truly step into the shoes of your previous customers to understand the true motivation behind their purchases. Once you are able to do that you’ll have a much better chance at up-selling these past buyers.

For example, if you sell beauty products and a previous buyer purchases shampoo and conditioner from your online store, consider how long it will take for her to go through those bottles. Once that time is coming near that she is down to the last few washes, what can you do to entice her to buy from you again?

If your typical buyer is on a budget, then you could offer her a loyalty discount to appeal to her money-saving needs. If you sell more high-end haircare, you could re-appeal to her with an ad showing some of her favorite celebrities that have endorsed these products.

The bottom line is devote the time to think strategically about your buyer personas so your able to re-appeal to them with compelling messages that speak to their specific wants, needs, and desires.

What is Cross-selling?

Cross-selling is the practice of increasing sales bypromoting related products alongside the items a customer is looking at or buying. A shoe store, for example, might sell waterproofing spray, shoelaces, and deodorizer at the checkout counter; an electronics retailer might promote additional cables and a TV stand while a customer is looking at a TV.The key is offering products that are complementary to the primary one they’re looking at. This makes the items being promoted more attractive because the customer will see how they enhance their original purchase. Cross-selling is an advantageous technique for several reasons:

• Cross-selling allows you to bundle in less-expensive items the customer is more likely to buy on impulse.
• Cross-selling can be beneficial to the customer, in that they’re getting the item they want and products that will enhance their experience.
• Cross-selling can build trust between you and the customer because you’re presenting them with products that likely match their needs.

When to cross-sell

While you can attempt to cross-sell at any point during the purchasing process, timing matters, so it’s important to be strategic about when you suggest other items to a customer. Too frequent or inappropriate cross-selling can frustrate visitors to your store, prompting them to abandon their carts and possibly even negatively affecting your store’s reputation.

Generally, it’s a good time to attempt to cross-sell to customers at two points during the purchasing experience: on the product page itself and during checkout.

Cross-selling on product pages

When a customer is on a product page, they’re already interested in the item, so this is a good opportunity to suggest related or complementary products. It’s a good rule of thumb to pitch products that cost 10 percent to 50 percent of the main product’s cost.

For example, on a product page for a $1,400 wood-burning outdoor fireplace on Wayfair, the products a customer is offered are relevant outdoor accessories at a much lower price point, as illustrated below.

Don’t attempt to cross-sell items that cost more than the product itself. Buyers are looking at this particular product page for a reason, and price is a major factor.

Cross-selling at checkout

At this point in a customer’s shopping experience, you should focus on cross-selling lower-cost items. These could be small add-ons such as an accessory for the product being purchased or a specific-size battery the item may require.

For example, when you go to checkout with a bag of dog food in your cart on Chewy.com, the checkout page suggests purchasing a variety of affordable items, such as dog toys and pet shampoo, as illustrated below.

A good way to think about this is to imagine you’re at the grocery store checkout. When you’re already in line with the items you want, the store attempts to cross-sell to you by offering a variety of lower-priced products you can add to your cart, such as magazines, sodas, gum and candy.

Cross-Selling FAQs

How Can You Increase Your Cross-Selling Effectiveness?

Second, wait until you have developed a relationship and have proven success with the customer. Once trust is established, the customer is more likely to continue purchasing your products and is primed to purchase different ones.

Lastly, make sure your products and services are aligned to the needs and goals of the customer. Offering something that serves no purpose is counterproductive and can detract from customer satisfaction.

What Are the Do’s and Don’ts of Cross-Selling?

Here are some tips for effective cross-selling. Sell to new and old customers. Old customers are your loyal customer base and are more likely to purchase again.

Build campaigns focusing on satisfied customers and promote additional products to them. Train associates to recognize satisfied customers and assess their needs. This is critical to understanding how to properly align them to other products.

Don’t assume that customers are aware of your other offerings. Educate them, and help them understand how those products can deliver value. When speaking to a customer, do so in a personable manner; otherwise, it comes across as a sales pitch.

Lastly, avoid unhappy customers as it can further the divide between them and your brand.

What Is Cross-Selling on eBay?

eBay features a Cross-Promotion Connections program whereby eBay sellers can connect with each other. When a buyer wins a bid, they are able to see the seller’s other listings, as well as their connections listings.

Previously, eBay featured a no-cost Cross-selling tool that allowed sellers to promote related products. Sellers could choose to either promote related items or promote discounts for larger orders. This feature was discontinued and is only allowed for select users at certain times.

Use upsells to make customers purchase more expensive items

Using Magento 2 Upselling extenstion is a win-win strategy to increase sales. Customers benefit from being aware of more advanced and more feature-rich products. At the same time, you gain from higher total sales as upsells normally cost more than the products a customer is considering. The key to upselling success is to offer close or full substitutes that can satisfy customers’ needs even better, though with a tiny difference in price. The main challenge is to present a higher priced item in a way that clearly states which additional value customers get in return for their money.

Show only relevant upsells

The Magento 2 Cross Sell Products extension allows you to tweak multiple parameters as well as add custom rules using the Data Source option.

Place promotions block anywhere

Carefully plan where to locate blocks that drive customers to upgrade their purchases. Many merchants use the main page to introduce new arrivals, limited editions or special deals to customers. On a product page, buyers need to see relevant, related products as they know what they are looking for. Cart page blocks are great for increasing transaction value with small related items.

Create limited time deals

You can set a time period during which an offer is valid with Magento 2 Cross Sell Products . For example, you can launch a 24-hour quick sale for expensive items that you know customers are interested in but refrain from purchasing because of the high price. This strategy can help to increase the number of spontaneous purchases by pushing buyers with the time limit.

Specify price conditions

Limit the list of suggested cross selling vs upselling products with regard to their price (higher or the same as the product in cart) to make sure you increase your total sales.

Mind product categories

You can decide whether to offer items assigned to the same or a different category. For example, you can draw attention to a more powerful product that is now in the Sales category.

Implement cross-sells to grow average cart value

Cross-selling and up-selling encourages a customer to spend more money by suggesting items from other categories which complement the main product. Quite often customers don’t even know that such items exist before they come across your smart suggestions. Efficient magento cross sells usually cost less than half the price of the in-cart product and are small and natural additions to the purchase (like a camera case to a camera or a comb to a cashmere throw).

Quick launch

This Magento 2 Cross Sell extension allows configuring cross-sells in a few clicks. Just specify the required parameters, and your cart page will be ready to generate more spontaneous purchases.

Show products based on the number of views or purchases

Let the cross-sell extension for Magento auto analyze which products are often viewed and bought together and recommend items that perfectly complement your customers’ purchases.

Use more than interactions history to show cross-sells

In addition to “Bought together”, “Viewed together”, and “Currently viewed”, now the extension allows you to apply sophisticated rule combinations and this way ensure the ultimate accuracy of your cross-sells suggestions.

Fine-tune precise product-relation rules

You can create as many diverse relation rules as you need to make item suggestions accurate and relevant. By combining multiple conditions, you can design sophisticated rules that encourage the sales of particular products.

According to the statistics, the extension can cover each business need in synergy with the following solutions: custom registration fields for magento 2, magento 2 facebook store integration and magento 2 notification messages.

How to add cross-sell products to Magento 2?

• Navigate to Catalog > Inventory > Products;
• open the needed product in the edit mode;
• in the Related Products, Up-Sells, and Cross-Sells section, click Add Cross-Sell Products;
• select needed products from the list and click Add Selected Products;
• save the changes.

What is Upselling?

Upselling is a sales technique used to persuade customers to purchase a more expensive or upgraded version of a product. If a person is already buying a product it can be easier for them to consider another, slightly different, option. Or more simply, upselling can be summed up by the McDonald’s phrase, “Would you like to supersize your order?” Remember, the aim is to deliver more value to your customers.

For example, if you sell sunglasses, you could upsell sunglasses that have polarized lenses or UV protection. In this instance, your customer may not have considered protecting their eyes with polarized lenses. They could be thankful for the reminder as it’s helpful.

And, given the choice, most people would prefer a premium version of your products.

Let’s look at an example of upselling from Dollar Shave Club. Here, they present their products side-by-side so that buyers can compare the benefits of each.

The message is clear:

“Sure, you could get the inexpensive razor — it’s great. But, you can get a better razor, that provides a better shave for just a few bucks more.”

And lastly, you have bundles.

Bundling products together is primarily a cross-selling technique, but many bundles include upsells. Here, Dollar Shave Club present bundles of their products:

Once again, the message is simple:

“If you’re buying a razor, you’re going to need blades, shaving cream, and moisturizer. So, this convenient bundle not only makes your life easier, it saves you money.”

3 effective cross selling tips

No matter what services you offer, the secret to success starts with your approach.

Cross-selling takes a bit of skill and flair to pull off correctly. Your approach has to be subtle, otherwise, the customer is likely to be put off. Here are a few tips to increase the effectiveness of your cross-selling strategy:

2. Wait until you can provide a “win”

Another tactic is to work on a client’s project for some time. Once you can show measurable results, clients will be more willing to invest in your additional services.

You’ll also be able to establish a better relationship during this time and can craft a more personalized plan tailored to them. That’s because you’ll have an inside look into what marketing methods the client was utilizing before contracting your agency, what is successful, and what doesn’t work.

3. Match services with client goals

Just because you offer web design services, for example, doesn’t mean your client needs a brand new website. So, you need to consider a client’s goals and how your additional services relate to them.

If their goal is increased traffic, you could offer PPC advertising, SEO, or content marketing. Web design may still play a role in these services (e.g. designing post-click landing pages, publishing blog posts, etc.) but you should factor them into your entire offering and demonstrate how each service will help meet the client’s goals.

This way, you’re providing value and not trying to sell the client on something they don’t need to turn a profit.