In our latest SaleCycle Academy video, we look at how and when to cross and up-sell to customers…
Cross selling and up-selling is about persuading customers to add additional products to their order, or to buy a more expensive item than the one they’re considering.
The key to success here is to pick the right time to cross or upsell, when the customer is likely to be most receptive.
Loyal customers – those that have purchased recently and frequently – are likely to respond well to upselling and cross-selling. This group spends more, and their loyalty demonstrates an affinity with your brand and products.
This segment can be targeted with post-purchase emails, or identified on repeat visits and served with personalised upsell recommendations. The best cross-selling and upselling will use customers’ purchase and browsing history to deliver relevant product offers.
Another time to target customers is during the consideration process. For instance, when browsing the site and viewing product pages.
For example, Apple takes customers through these pages where its Macbooks are shown side by side.
So, if customers are thinking about a cheaper model, they may be persuaded to upgrade after seeing the extra performance and features they can have if they spend a little more.
Apple also uses price anchoring, which is another good upselling tactic. By presenting three models and prices side by side, it can make the middle option seem like a good deal.
Customers that have entered checkout can also be persuaded to add more items to their basket.
Products need to be relevant to the purchase, – memory cards and case for digital cameras for example, – and they should not interrupt the checkout process.
The common factor for effective cross and upselling here is relevance. Recommended products should be related both to customer preferences and to the products they’re considering.
Graham Charlton is Editor in Chief at SaleCycle. He's been covering ecommerce and digital marketing for more than a decade, having previously written reports and articles for Econsultancy. ClickZ, Search Engine Watch and more.