If there’s one thing you want as a business owner that is to make more money. To receive more orders on your site – and to watch your bottom-line grow.
It’s OK, but you’ve got to know how to entice customers to spend more when they are on your site – you’ve got to learn how to move the dollar bills from buyers’ wallets to your bank account. Mind you, you must do this ethically.
And we’re going to be writing about two of the important strategies you can implement right now in your sales process and start receiving larger orders.
And they are Upselling and Cross-selling.
First, you would want to know what these terms are: What is upselling you may ask – upselling is a sales technique that retailers utilize it to induce customers to spend more by offering more expensive products to them. Most times the suggested product is related to the ones the buyer is considering to buy but in this case, has more features and is usually an upgrade to the selected product.
To illustrate how this works.
Let’s say you sell Phones on your site, a customer adds Samsung galaxy s7 to their shopping cart, by upselling the product you would show the buyer Samsung galaxy s8 and list out the features that make this phone better than the initial one they choose.
So in this case, what you’re trying to do is to get the buyer spend more by going for the upgraded version of the same phone – this is what upselling is.
Let us also take a look at cross-selling – people most times, confuse upselling with cross-selling – they’re not the same, and you will see why.
Cross-selling is a sales technique that seeks to get buyer increase their order value by offering them complementary products to the ones they’ve already selected.
To illustrate this, let’s go back to our Phone site. Imagine a customer is on the site and has added Samsung galaxy s7 to their shopping cart, and then on the checkout page, you showed them phone accessories like power bank, phone case, and much more.
So why should you up-sell and cross-sell your customers?
For increased revenue: isn’t this the aim of your store? Stores like Amazon, Best Buy, and those other giant e-commerce sites have perfected this technique, and they’re reaping the rewards. In fact, according to a study, about 10 to 30 percent of e-commerce revenue comes from upselling and cross-selling buyers.
It improves the shopping experience for your customers: When do right, these techniques can improve the shopping experience for your site visitors – making them spend more time on your site and invariably buy more from you. It is important to view these sales techniques as a win-win both for the buyer and you-you’re able to increase the value of an average order while the customers get other complementary products that will help them.
They boost your conversion rate: Buyers are more likely to spend more on your site when you show them related products.
The techniques work great for existing customers: Upselling and cross-selling leverages an already established relationship with buyers to sell more. So you should also consider using these methods to pull in more revenue from your customers.