What is the term for selling related products? What is cross-selling in marketing, and what does upsell mean? We’re ready to answer all of these questions, and more, in this article!
Learning about the ways upselling and cross-selling markets for your online store is a must if you’re looking for a boost in conversion rates. All you need to do is take a look at the most well-known and successful online stores out there, and you’ll find the best cross-sell examples.
If you want to learn more about why, when you go to a burger place, you’re offered a menu deal, and how that marketing tactic transcends into online stores, read on! And once you’re ready to implement the best strategies, our conversion rate optimization agency in Sydney, Wiqly, is ready to help you out!
What Are Upselling and Cross-Selling and How Do They Work?
Cross-selling encourages customers to buy related or complementary products, whereas upselling encourages customers to buy a similar but higher-end item compared to the one in question.
Although they are frequently used interchangeably, both have unique advantages and work well together. When done correctly, upselling and cross-selling increase income without incurring the ongoing costs of various marketing channels, while giving clients the most value possible.
A study by the Harvard Business Review found that upselling can increase revenue by 20-30%. A study by Salesforce found that cross-selling can increase revenue by 25-35%.
What Is Cross-Selling In Marketing?
If you’ve ever wondered what is the term for selling related products, here is your answer. Cross-selling refers to the marketing of goods that fill complementary and additional demands left unmet by the initial offering. Cross-selling frequently directs customers to goods they would have bought anyhow; by presenting them at the appropriate time, a retailer assures them they make the sale.
Cross-selling is frequently used in e-commerce, including on product pages, in checkout processes, and in lifecycle promotions. It is a very efficient strategy for getting clients to make repeat purchases by showing them the variety of a catalog.
A good cross-selling technique can introduce customers to products they were unaware you had, boosting their trust in you as the best shop to meet their needs. Our conversion rate optimization agency in Sydney, Wiqly, can help you discover the best cross-selling technique for your store.
What Does Upsell Mean In Marketing?
Comparisons are frequently used in upselling to offer more expensive products to buyers. Users may be more delighted with their acquisition if you can convince them that other models or editions may better suit their needs.
Businesses that are successful at upselling are good at assisting clients in seeing the value in purchasing a more expensive item.
The Benefits of Upselling and Cross-selling
If it’s one thing that we’ve learned at Wiqly, our conversion rate optimization agency in Sydney, it’s that there are plenty of ways in which implementing upselling and cross-selling strategies can bring benefits to both your customers and your business.
When it comes to your online store, if you successfully upsell or cross-sell, that means:
1. Increased Revenue
You either sell multiple products, or you sell one product that is more expensive than what your customer was initially going to buy. Either way, your online store profits.
2. Lower Marketing Costs
Having a few related items pop up at check-out when a customer is making an online purchase can bring more sales than individually advertising each of those products through other means – at a fraction of the cost. Cross-selling markets for you!
3. Increased Customer Satisfaction and Loyalty
A satisfied customer becomes a loyal customer. What is cross-selling in marketing, and what does upsell mean, at the end of the day? Ensuring your buyers make the best purchase for their needs.
When existing customers see how well you know your products, they will continue to buy from you, and their average order value will grow.
Can Upselling and Cross-Selling Increase Your Conversion Rates?
In short: yes! While upselling may be better suited for an existing customer with past purchases, cross-selling strategies can be perfect for converting new clients and convincing them to make their initial purchase.
For one of the best cross-sell examples, and to see how cross-selling markets to customers even before they’ve added anything to the shopping cart, think of the layout of most product pages from online clothing stores. Beneath the blouse, dress, or shoes you clicked on, you will find a “suggested” section.
The store compiles a short list of associated products that are similar to the one you initially chose to look into. Some are higher-end versions, while others are just from the same category or would go well in an outfit with the initial item.
Either way, what the business is doing is catching your attention with products you are more likely to purchase, and increasing their chances of you converting.
This can be done in most industries, not just fashion. Employ good upselling and cross-selling strategies with the help of Wiqly, our conversion rate optimization agency in Sydney, and watch your conversion rates skyrocket.
The Best Practices For Upselling and Cross-Selling In Your Own Store
Now that you know why it’s important to upsell customers and cross-sell products, it’s time to learn how to successfully implement any upsell and cross-selling technique in your online store.
1. Know Where To Display Offers
You have three options:
- Before the customer makes a purchase;
- During the customer’s purchase;
- Post-purchase offers.
If you want to opt for before, then you can do that like we’ve exemplified before – with strategically placed “suggestions” on product pages. The same suggestions can also be made during the purchase, but this time a bit more tailored.
Don’t stray too far away from what the person is already buying. For example, if your customer is already purchasing a phone, don’t advertise another phone – their mind is already made up on that part. Do, however, offer them phone accessories, chargers, headphones, and anything else that may complement their purchase.
After they have already purchased, what’s left to do is continue upselling and cross-selling through follow-up email sequences!
2. Know Your Audience
Even though you may be familiar with buyer personas, it’s crucial to learn more about your customers once they have already purchased your goods.
Create personas for your consumers using demographic and psychographic data about them, as well as comments from them, to better understand their goals and issues and find the most beneficial, pertinent goods for cross-selling and upselling. The best cross-sell examples out there are based on thorough research.
3. Map Out The Customer Journey
To understand how your product will be used and how it will benefit the consumer, plan out the user experience. When your consumers start to see results, they’ll probably be eager to hear your cross-sell or upsell offer and will probably be willing to pay more for your extra item.
Before attempting to cross-sell or upsell, wait until they are prepared. You’ll have a difficult time persuading customers to buy more before they’ve had time to become familiar with your products a little, or (if it’s after the purchase) before they’ve realized their purchased item’s value.
Start Upselling and Cross-Selling With Wiqly
Now that you’ve learned what is the term for selling related products, the term for selling higher-end products, and how these two strategies can benefit your online store, it’s time to implement them.
Whether you want to upsell to previous customers, or are in need of the best cross-selling strategy, we’ve got you covered! Get in contact with Wiqly, our conversion rate optimization agency in Sydney, and let’s upscale your online store together!