Tips for Using Big Data to Optimize Upsell and Cross-Sell Strategies
Getting traffic to your website can prove quite difficult and converting that traffic once it arrives is even more of a challenge. Most e-commerce conversion rates fall between 2 percent and 3 percent, unless you're Amazon.com (9.6 percent) or ProFlowers (14.1 percent). Therefore, when you manage a hard-fought victory, capitalize on it through aggressive upselling and cross-selling strategies. Big data gives retailers a new opportunity to succeed in this area.
Benefits of Upsell and Cross-Sell
When a consumer enters a store searching for a specific product, a salesman comes to their aid, providing them with whatever they need while suggesting alternatives and complementary products. Perceptive suggestions by the salesperson enhance the store's image in the eyes of the consumer, as it reflects a level of thoughtfulness on the part of the store. Suggestive selling online can be a valuable tool as it serves as a practical method of increasing profits and leveraging customer-buying patterns that may be hidden within your company's data. Cross-selling and upselling offer great value, as they increase the following:
- average order value;
- conversion rates (they guide consumers to select appropriate alternatives in case they're looking at the wrong product or one that doesn't complement the product in their shopping cart);
- exposure to high-margin products;
- customer satisfaction (the recommendation of related products will enhance the product as well as the user's experience); and
- deeper awareness about the products being offered.
Upsell and Cross-Sell: Tips and Tricks
1. Suggest the obvious. Several cross-selling and upselling opportunities arise all by themselves. For instance, if you're offering tennis racquets, suggesting tennis balls, bags and other relevant accessories is natural. You can also consider mentioning a few other related products and services that you provide.
2. Relevant suggestive selling works wonders. Overloading customers with unrelated product suggestions only serves to exasperate them and hamper purchase scope. If not immediately purchased, it will definitely hinder your chances of developing a repeat customer. Therefore, product suggestions should be as closely related as possible.