Estimated reading time: 10 minutes
This article is for those who are looking for a cost-effective approach to increase traffic to their e-commerce website. Here is the sales hack that can help you expand your business without having to spend a lot of money.
The growth of the e-commerce industry over the past few years is reaching new heights, which is why business owners worldwide are making significant investments in this field.
However, there is fierce competition in the e-commerce industry, and as a business owner, your largest difficulty is to differentiate your brand from the competition.
Well here’s a secret!
There is only a 5-20% chance to convert a new customer, while, the probability of selling an existing customer goes as high as 60 – 70%. In simple terms DO UPSELLING!
Upselling and Cross-selling are two of the keystones of any SUCCESSFUL e-commerce business—the most straightforward strategies you can use to increase your online sales without paying a dime. But, the fact is, only a small percentage of online sellers effectively employ these techniques.
Businesses can lose sight of existing clients because they are so intent on acquiring new ones. However, since it’s far simpler to sell to existing clients, maintaining or re-engaging them should be a key goal for online merchants.
Meaning– If you’re not making an effort to upsell and cross-sell, you could be losing out on a significant amount of potential money.
The best part is that it doesn’t at all necessitates extensive planning, months of research, time, or even money. Continue reading, and get to know some fantastic upselling strategies you can implement in your store, as well as a few ideas on what to sell and how to set up upsells quickly.
So, let’s set the ball rolling & analyze the tricks one-by-one in detail.
What is Upselling?
Upselling is one of those sales tactics that every single online store can use to increase their average order value (AOV) by 10, 20, or even 30%.
Upselling entails convincing your consumers to upgrade to a better or more expensive version of the product or service they’re looking for; to increase the profitability of the sale. It’s a smart move, as your customer is already considering buying and is probably amenable to an upgrade.
Upselling isn’t simply a sales strategy; it’s also a customer satisfaction strategy that can help you forge closer bonds with clients by providing more value.
Example of Upselling
Ever booked a hotel? If YES, then you may have noticed that they sometimes provide hotel room booking by adding more features (ocean view, unlimited Wi-Fi, etc.). Upselling it is! And they cross-sell by offering sightseeing tours, or access to a gym at a reduced price.
For creating upsell offers, the easy way is to use a One Click Upsell Plugin which will let you create unlimited funnels with different product categories. The plugin will help you to create post-purchase upsell and cross-sell offers to increase sales.
Cross-selling (not to be confused with upselling ), is the activity of persuading clients to purchase extra items, typically ones that compliment the ones they are already purchasing.
Customers frequently have to purchase these extra items anyhow, but by giving them the option at the correct time, you may enhance the likelihood that they’ll purchase them from your business.
Example of Cross-selling
Cross-selling products to its customers is a specialty of Amazon. You will see products that are “frequently bought together” when you visit any product page on the website. Amazon will recommend more products that are closely related to the one you are currently purchasing.
Since adding these goods to your cart is so simple, Amazon has become an expert at encouraging customers to make more purchases without ever resorting to the hard sell.
Upselling, Cross-selling and Downselling
Cross-selling and upselling are phrases with distinct meanings. Cross-selling raises the value of a sale by recommending new, lateral items that complement the first purchase. Additionally, upselling boosts the value of a transaction by presenting your prospect with an upgraded or enhanced version of the initial product.
Despite the fact that the terms are frequently used synonymously, each calls for a unique approach. Continuing with the example of your preferred fast food,
Cross-selling and upselling are both strategies that marketers should have at their disposal because they increase average order value (AOV) and client lifetime value right away.
Although upselling is a fairly successful marketing tactic for increasing AOV and profitability, it isn’t always successful. Although your consumers may occasionally decline your upselling or cross-selling offers, we must make every effort to convert them all.
Here, downselling plays a part.
Offering a more cheap version of the product than the original is a downsell. Try down-selling if a customer has declined your upsell offer. This will guarantee that no customer leaves your store empty-handed and that your conversion rates are maintained.
For example, you visit Amazon to buy a latest edition Apple phone. But when you look at the price the phone seems to be too expensive. Therefore, Amazon suggests a cheaper version of the desired product.
Try the Upsell Order Bump Offer for WooCommerce Plugin of WP Swings and create the offers for multiple products in the easiest way possible! The plugin will allow you to create multiple offers on the checkout page in a few clicks.
Here Are Some Ideas You Can Try:
- Upsell Into a Subscription:
This is a no-brainer if your store offers subscriptions. Given that your customer is already interested in the product, why not give them a discount? (while securing recurring revenue for yourself).
WP Swing’s Subscriptions for WooCommerce Pro plugin can assist you create subscriptions, manage your WooCommerce store and get recurring revenue seamlessly.
- Offer Free Shipping:
Offering free shipping always boosts sales. Nearly 90% of customers claim that receiving free shipping encourages them to shop more frequently online.
Then, how does this apply to upsells? People can be alerted of the additional cost necessary to receive free shipping. In particular, if the items aren’t too pricey, it acts as a potent incentive to keep adding items to the cart.
In case you want to set up WooCommerce shipping for your online store, the step-by-step guide of WooCommerce shipping will help out with shipping costs and processes
- Follow the ‘Rule of 3’:
The rule of three is nothing more than a theory that states readers are more likely to retain information that is presented in groups of three. A trio of events or people is seen to be funnier, more gratifying, or more powerful than other numbers, according to ancient Greek rhetoric.
Nowadays, the rule of three is practically universal. Upsells in eCommerce can also be governed by the rule of three. There are various pricing tiers where this rule might be used. Below is the example for the pricing table of CodeCanyon.
- Be More Personalized:
Personal recommendations are more effective and personalization is mostly dependent on data. According to the survey, 70% of customers are generally okay with service providers, news sites, streaming services, and shops gathering their personal information as long as they are open about how they plan to use it.
- Product Bundling
Product bundling is a special and underutilized approach to boost an e-commerce store’s revenue.
With this method, you provide customers with a selection of goods at the appropriate level of discount. Customers will be persuaded to purchase 2-3 products rather than just one in product bundles, increasing your sales.
- Create a Feeling of Urgency
Give your customers a time-bound offer. Tell them why availing it in this particular period could be beneficial. Always remember to price them fairly and be aware of the goods that will most likely convince customers to buy.
For example, say you sell an online subscription with a free and paid version. You can offer a quick ‘New year offer’ where the prices are slashed only for a limited time. It may entice them to subscribe.
- Comparison Table
Providing customers with a comparison table is the most widespread and typical technique of upselling. The comparison table enables clients to compare the numerous features of each version of your goods and services in an easy-to-understand manner.
The above pictures show the one-click upsell pricing plan comparison of WP Swings. This is a great strategy to encourage your customers to buy an upgraded plan of your services, as a result, the AOV is boosted instantly.
So this was the answer to the question “What is Upsell?” and some examples of how brands have successfully practiced upselling and cross-selling to skyrocket their revenues.
Some More Secret Hacks for Upselling:
- Prepare your customer for the upsell from the very beginning. If they know it’s coming, they won’t be surprised by your call, in fact, they will be expecting it.
- Make sure your upsells are part of your funnel and have a strategy for following up.
- Know and remember what your customer’s goals are and how they fit with your product – you will need that later.
- Use their own success matrix to determine when to approach them for the upsell.
- Create opportunities along the way that demonstrate your interest in their success.
How to Upsell Products and Services?
Salespeople can employ upselling techniques in a variety of ways to raise the average order value. Take these actions:
1. Find out what your customers desire. Salespeople have the opportunity to explain why a certain good—the more expensive product—meets their needs when they inquire about the needs of potential clients. Analyzing the demands of your customer segments can also strengthen customer loyalty and the customer experience.
2. Use market trappings. Companies can promote warranties, upgrades, and other essential product components to enhance sales and boost profits.
3. Follow up after purchase. Following up a week after delivering an order confirmation email to a consumer, give promotions for pertinent products depending on their initial purchase. This is an opportunity to present additional products and boost client retention.
4. Offer discounts as an incentive for upsells. Some clients might prefer to remain in a specific price range. By displaying more expensive products and lowering their prices to make them more enticing, businesses can encourage upsells.
Some Interesting Upselling Examples
Upselling strategies are used by both small and major e-commerce companies to increase revenue. Following upselling strategies, you can convince your lot during decision-making for buying the upgraded versions:
1. Premium deals: A customer looking for a normal TV is directed toward a larger one that is a premium model with greater sound and a crispier picture, by a salesperson.
2. Comparison: When a customer is deciding between two bikes, a salesperson presents a side-by-side comparison, emphasizing the more expensive vehicle’s superior capabilities.
3. Personalization: When a brand-new homeowner visits a furniture store to purchase a bed, the on-site designer offers to hand-make a custom table—a superior product with a higher price.
To know more about upsell and its strategies in depth, you can always go through WP Swing’s upsell blog.
Time to Sell with Upsell
Upselling and cross-selling aren’t always easy to do. It takes genuine tact, ideal timing, keen awareness, and sensitivity to handle either situation well.
You’ll be able to upsell and cross-sell like the pros if you can keep an eye on how your consumer is feeling, have a sense of the features or goods they stand to benefit from, and anticipate the moments when they’ll be most receptive to a new offer.
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Author Bio: Himanshu Rauthan is an entrepreneur, Co-Founder at WP Swings, MakeWebBetter, BotMyWork, and the Director of CEDCOSS Technologies. He has worn many hats in his career - programmer, researcher, writer, and strategist. As a result, he has a unique ability to manage multi-disciplinary projects and navigate complex challenges. He is passionate about building and scaling eCommerce development. Connect with him on LinkedIn and Twitter.