Upselling and cross-selling are dynamic strategies that not only boost your sales but also enrich the shopping experience for your customers. In this blog, we’ll dive into how to harness these techniques effectively for your eCommerce business, showcasing real-life examples and practical strategies to help you drive success.
Scroll down to uncover powerful strategies and learn how to use them in your store!
What’s Upselling and Cross-selling?
Upselling and cross-selling are two strategies businesses use to increase sales by offering customers better or additional products. While upselling encourages people to buy a more expensive version of what they’re considering, cross-selling suggests related products that complement their purchase.
Upselling Ecommerce
Upselling is when you encourage a customer to purchase a higher-end product or a premium version of the item they’re looking at. For example, if someone is buying a laptop, you might suggest one with more storage or better processing power.
Businesses use upselling because it helps increase the average order value (AOV) without needing to bring in new customers. Consumers often appreciate upselling when it's framed as offering extra value or convenience. A successful upsell can make the customer feel like they’re making a smarter, more informed decision by choosing a better product for their needs.
Cross-selling Ecommerce
Cross-selling happens when you suggest additional items that complement the customer’s current purchase. For example, if someone buys a camera, you might suggest a memory card, lens cleaner, or camera bag.
This strategy is effective because it not only increases sales but also enhances the customer’s overall experience by offering useful products they might have overlooked. Consumers tend to view cross-selling positively when it feels helpful rather than pushy, as it ensures they get everything they need in one go.
Why Upselling and Cross-selling are Crucial for Your Business
Upselling and cross-selling are key strategies for increasing revenue without needing to attract new customers. They help boost average order value, improve customer satisfaction by offering relevant products, and increase long-term loyalty when done right.
Effective Strategies for Upselling
Offer Premium Versions
Suggest an upgraded model or a higher-end product when the customer is making a purchase. This works well in industries where small improvements can make a big difference in the product's value, such as electronics or software.
Highlight Added Value
Clearly explain how the more expensive option can benefit them—whether it's better quality, more features, or longer durability. Customers are more likely to pay more if they understand the added benefits they’re receiving.
Time-limited Discounts
Offer a special deal on an upgraded product to create a sense of urgency. Phrases like "Upgrade for 20% off—today only!" can encourage customers to make a decision on the spot.
Personalized Recommendations
Use customer data to offer upsells tailored to their preferences or past purchases. For instance, if a customer frequently buys eco-friendly products, suggest premium sustainable options that align with their values.
Show Social Proof
Highlight reviews or testimonials for the premium version to reassure the customer that it's worth the investment. Seeing other customers endorse the upgrade makes it easier for someone to justify spending more.
Offer Flexible Payment Options
For high-ticket items, offering financing options or installment plans can help customers feel more comfortable opting for the more expensive product. This lowers the perceived financial risk.
Compare Side by Side
Create a clear comparison between the base model and the upgraded version. Showing features side by side makes the benefits of the premium option more obvious and can tip the scale toward the upsell.
Offer Upsells After Checkout
Sometimes, customers might not be ready for an upsell during their initial purchase. Offering an upsell via a follow-up email, like "Upgrade to Premium for 10% Off in the Next 24 Hours," can capture post-purchase buyers.
Cross-selling Tactics that Work
Bundle Offers
Create packages that combine related products for a discounted price. This encourages customers to buy more in one go. For example, selling a camera with a lens, bag, and tripod at a slightly reduced rate makes the purchase more attractive and adds convenience for the customer.
Checkout Suggestions
Display complementary items on the checkout page, like accessories or small add-ons that enhance the main purchase. For instance, suggesting a screen protector or case when a customer buys a phone can easily add value to the purchase without feeling intrusive.
Post-purchase Emails
Follow up with emails offering items that fit well with what the customer already bought, increasing the chance of a second purchase. For example, after someone buys a laptop, you could send an email suggesting external storage drives, mouse pads, or software subscriptions.
Targeted Cross-sells
Use analytics to recommend products based on what similar customers have bought together. If a shopper buys hiking boots, suggesting socks or trekking poles based on other customer purchases can feel more personalized and relevant.
In-Cart Cross-sells
As customers review their cart, suggest lower-cost complementary items that don't dramatically increase the order total. Items like batteries, cables, or cleaning products work well here, as they add convenience but don’t feel like a major extra expense.
Product Page Recommendations
On the product page, show “Frequently Bought Together” or “Customers Who Bought This Also Bought” suggestions. These recommendations are subtle but effective in helping customers discover additional products they might need, often leading to impulse purchases.
Offer Complementary Services
For products that require assembly or installation, offer a service option as a cross-sell. For instance, when selling furniture, suggesting an installation service at checkout can increase revenue while adding convenience for the customer.
Limited-Time Offers on Add-ons
Encourage customers to add cross-sell items by offering a discount that’s only available during their current session. For example, "Add this accessory to your cart now and get 15% off!" taps into a sense of urgency.
Loyalty-Based Cross-sells
Use your loyalty program to offer exclusive discounts on complementary products. Members feel special and are more likely to buy when they think they’re getting a deal just for them. For example, "Since you’re a VIP member, get 10% off accessories for your new purchase."
Cross-sell Through Subscriptions
If you offer subscription-based products, cross-sell additional features or services as part of the plan. For instance, offering a premium support plan or extra cloud storage to customers already subscribing to software services can boost their experience and your revenue.
Do’s and Don’ts with These Selling Strategies
Do’s:
- Make It Relevant: Always suggest items that genuinely add value or enhance the customer’s purchase. Irrelevant offers can come across as pushy.
- Be Transparent: Clearly explain why the upsell or cross-sell is beneficial, so the customer sees it as a helpful suggestion, not just a sales tactic.
- Use Timing Wisely: Introduce cross-sells at key moments, like during checkout or post-purchase, where customers are more likely to add extra items.
Don’ts:
- Don’t Overwhelm the Customer: Bombarding the customer with too many options can cause decision fatigue and may even lead them to abandon the purchase.
- Don’t Be Pushy: If the upsell or cross-sell doesn’t align with the customer’s needs or budget, it can create a negative experience and harm trust.
- Don’t Forget Personalization: Generic upsells or cross-sells can feel irrelevant. Tailor your offers based on the customer’s behavior, preferences, and past purchases for better results.
What is Downselling Ecommerce
ʼDownselling is a sales strategy used when a customer shows reluctance or hesitates to buy a higher-priced item. Instead of pushing them away, you offer a lower-cost alternative that meets their needs.
This technique is often used to retain potential sales and avoid losing customers who might otherwise leave without purchasing anything. It helps in maintaining customer interest and satisfaction by providing an option that fits their budget while still generating revenue.
Downselling Strategies
Offer a Smaller Version
If a customer is eyeing a high-end product but seems hesitant, suggest a smaller or less feature-rich version of the item. For example, if they’re looking at a premium camera, offer a more basic model that still meets their needs.
Introduce Budget-Friendly Alternatives
When a customer shows resistance to the price of a product, present a budget-friendly alternative that still provides value. For instance, if they're interested in an expensive software package, offer a basic version with essential features at a lower price.
Suggest Related, Lower-Cost Items
If the customer isn’t ready to buy the main product, recommend related items that are more affordable but still relevant. For example, if they’re considering a high-priced gadget, suggest related accessories or smaller items that are within their budget.
Promote a Trial or Basic Plan
Offer a trial version or a basic plan of a more expensive product or service. For software or subscription services, provide a free or lower-cost entry-level option to encourage customers to experience the product before committing to a higher-priced version.
Use Bundled Discounts
Combine the lower-priced alternative with other complementary products in a bundle deal. This can make the down-sell option more appealing by offering more value for the same price, such as a less expensive gadget paired with essential accessories.
Apply Temporary Discounts
Offer a limited-time discount on the lower-priced option to create a sense of urgency. This can motivate customers to purchase the alternative before the discount expires.
Provide a Payment Plan for the Lower-Cost Option
If the original product is too expensive, offer a payment plan for the lower-priced alternative. This allows customers to spread out their payments, making it easier for them to commit to the purchase.
Examples of Successful Upselling
Amazon
When customers view a product, Amazon often displays “Frequently Bought Together” or “Customers Who Bought This Also Bought” suggestions. For upselling, Amazon shows higher-priced versions of the product the customer is viewing, often highlighting additional features or benefits.
Apple
Apple’s website frequently uses upselling by suggesting customers upgrade to a higher model of a device with more storage or better specifications. For instance, when purchasing an iPhone, customers are encouraged to opt for a model with more storage for a higher price.
Netflix
Netflix upsells by offering customers the option to upgrade their subscription plan for additional features, such as streaming on more devices or accessing content in higher resolution.
Expedia
When booking a flight, Expedia shows options for upgraded seats or additional amenities, such as extra legroom or priority boarding, encouraging customers to spend more for a better travel experience.
GoPro
GoPro frequently upsells by suggesting customers purchase higher-end models or additional features such as enhanced image stabilization or 4K video capability, often highlighting how these upgrades improve the quality of their content.
Examples of Successful Cross-selling
Amazon
Amazon excels at cross-selling by showing complementary products on the product page and during checkout. For instance, when buying a camera, Amazon suggests accessories like memory cards, camera bags, and tripods.
Best Buy
Best Buy cross-sells by recommending related products during the checkout process. For example, when purchasing a laptop, customers might be shown options for a laptop bag, external hard drives, or software bundles.
McDonald's
Example: McDonald’s uses cross-selling effectively by suggesting additional items with their “Would you like fries with that?” approach. This encourages customers to add fries, drinks, or desserts to their meal.
Sephora
Sephora effectively cross-sells by recommending complementary beauty products based on a customer’s purchase. For instance, when buying a foundation, Sephora suggests matching concealers, brushes, or setting sprays to enhance the customer’s beauty routine.
Nike
Nike cross-sells by suggesting related products such as running shoes with matching athletic wear or accessories like fitness trackers, all tailored to complement the customer’s primary purchase.
Profstep Cross-selling and Upselling Extensions
At Profstep, our Related Products and Banners extensions are designed to boost your upselling and cross-selling strategies effortlessly.
Related Products Extension
This extension automatically displays complementary products on product pages or in the shopping cart, making it easier for customers to discover relevant items. By showcasing higher-end or alternative products, the Related Products extension helps drive upselling, while also encouraging cross-selling by recommending additional items that complement the customer's purchase.
Banners Extension
Our Banners extension lets you create eye-catching promotional banners to highlight special offers, discounts, or product upgrades throughout your store. You can place banners on category pages, product pages, or during checkout to promote upsells, such as premium versions or bundles and cross-sells by showcasing accessories or add-ons that enhance the customer's purchase.
