Week Eight: Cross Sell + Upsell

by | Sep 29, 2021 | customer journey | 0 comments

Tell me about cross selling, what are some tricks retailers can use to sell more during purchase?

Cross-selling is finding additional items which satisfy additional needs or solve additional problems – the solution that your current potential customer’s purchase they are looking at does not. For example, if you’re looking for an iPhone, this might be AirPods. 

Be careful when cross-selling that you’re not cross-selling too early. You can run the risk of distracting your potential customer from the item they are looking at purchasing or running the risk of them devaluing the item they are looking to purchase if they have no intention of buying these additional items. It might actually lose some of the benefits they would otherwise get if they purchased both. For example, if you focus too much on how the AirPods work with the iPhone but they have a different brand of tablet then they might start wondering if they offer a phone and AirPods. 

Utilise cross-selling as a way to offer additional services – complete the look or complete the purchase style.
Utilise cross-selling as a bundle – different pieces bundled to access additional savings then they purchase more. 
Pitch new products or services you are testing.
Adding to your authority – building that trust – if you are in food and beverages that may be ‘this is the best wine to go with this steak’. 

Utilise all the insights you have on the customers from throughout the customer journey to actually identify the best ways to cross-sell to them. And think of cross-selling as like a railway crossing – don’t cross until the path is clear.

So what about upselling – what are three tips you suggest on upselling to our best customers?

Up-selling is when you actually move a customer to a higher value product or service that better satisfies their needs or solves the existing problem. For example, perhaps the iPhone 13 instead of the iPhone 10. 

To upsell effectively you really want to understand the values that they see in the current item. 
If it’s price and they have a higher budget – upsell by illustrating how much more they get for their dollar. 
If it’s the product – if they have a higher budget perhaps upsell the higher quality features and benefits they’ll get. If not a higher budget, the warranties and protections to protect the money they are spending. 
Look at the full customer journey and find all the places you can test and upsell. For example, when they want to learn about pricing – show a comparison chart. When they achieve a milestone show how they can take this success to the next level. If they are about to press buy, perhaps find out whether it’s a gift and see if they’d like to add a card or have it gift wrapped. 

Don’t be too aggressive. If you’re too aggressive around the value of the higher priced items just be careful – you may lose their trust or value in what they are currently looking to purchase. For example, if you are upselling a top and talk about the material and how it doesn’t stain and how long it lasts – if they don’t have a higher budget they might look at the top they were going to buy and now view it as of lesser value. It may already be in the cart but you may lose the sale. 

What are some measurements we could use in cross selling and upselling customers?

Use the cross-selling and upselling opportunities to learn what’s important to your customers. For example, if they respond to an upsell on a comparison chat, you’re learning they may be more focused around the dollar or see additional benefits in the higher product they didn’t consider before. 

If they respond to an upsell at the milestone, they are telling you that they may be more momentum-based purchasers so you are learning you may need to create more milestones for them to continue purchasing from you. 

Perhaps you learn that they actually respond to a sense of urgency or are more reactive and regular engagement with them and timed opportunities might be more successful. 

Quantitative measurements: 

Conversion rates are really important.
Average sales volume per customer – the number of different products or services being purchase per customer
Upselling and cross-selling ratios – the number of products and services divided by the number of customers

What would success look like here for an online fashion retailer?

Success would start by learning more about your customer. Then these improved metrics (above) across the customer journey and getting them through the full customer journey quicker, faster, spending more money etc. And then, with these additional purchases being made, it will then start to look at higher customer loyalty as well as return purchasing. 

Next time, we’re talking about Advocate and Promote as the next step. Can you give us a brief definition of each in this context?

This is one of the, if not the, most powerful marketing and sales tools you have available to you. A number of businesses limit themselves, but by understanding some of the key basics around how to access new customers through your current customers, through partners and even those only at the stage of considering you – you can actually unlock incredible opportunities to scale your business. 

Proudly presented by PUCTTO + BECCI REID

PUCTTO – www.puctto.com
PUCTTO virtual try-on technology lets shoppers visualize fashion on a photo of themselves. For online fashion retailers, a widget on their website increases exposure, engages customers and ultimately helps them stand out from the crowd. 

BECCI REID – www.beccireid.com
I’m an Aussie entrepreneur based in LA and working with awesome people across the globe through advisory, and consulting while building my own tech startup. I understand the highs and lows at multiple stages on the journey and can’t wait to learn about yours 🙂

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