Why eCommerce Apps Need Upselling
If you check the conversion metrics of your eCommerce store, you’ll notice that a majority of users who visit your website are not converted into customers. This abandonment rate is between 60–80% for most businesses, which includes those who browse or add a few products to their cart.
You may be tempted to track down the lost prospects or increase the site traffic. However, the key to increasing the income lies in two eCommerce strategies — Upsell and Cross-sell.
What Are Upsell And Cross-Sell?
Upselling is the practice of encouraging users to purchase a higher product or service than what they intended to. During the purchase, you can offer them an upgrade with an additional discount if they avail it. This would increase the average cart value.
Cross-selling is encouraging users to buy complementary products or services which are related to the products they are purchasing. The products should be related to the original product and should add value to the consumer.
Upselling and cross-selling are two eCommerce strategies that increase the average cart value while increasing the trust between the customer and your brand.
The Benefits Of Upsell And Cross-Sell
Upselling and cross-selling can improve customer satisfaction and retention. An upsell can be used to help the customer feel valued as they are getting a better product for a cheaper price. Cross-sell helps them to find related products. This increases the goodwill of your retail brand.
The biggest benefit of upselling and cross-selling is it increases your Average Order Value (AOV). More sales per order mean more revenue and lesser expenditure per customer to hit your intended profit targets.
The probability of selling to a new customer is around 5–20% and 50–70% for existing customers. The retention rate and customer happiness is increased, which is another advantage of these strategies.
How To Implement Upsell In Your E-Commerce App?
The Code
The first step of implementing the upsell strategy is to write the code for the upsell pop-ups or layout. The layout for the upsell should be user friendly and attractive to the customer. A clean pop-up or layout for the upsell or cross-sell helps in increasing the conversion rate of the eCommerce store.
What To Upsell
What can we upsell? Basically, the product or service that’s an upsell depends upon the base product. If a customer picks a coffee pot, a better version of the pot is an upsell. Offering them coffee beans is a cross-sell. To maximize profit, the eCommerce store owner can implement both upsell and cross-sell strategies.
You could offer more products, like a bundle discount when they purchase an ’n’ number of products. If it’s a product that a customer would buy on repeat, like kitchen essentials, you could offer a “subscribe and save” offer. Other strategies like “Couple Combo” or “Buy One, Get One” are effective upsell and cross-sell strategies.
Run Your Offer For A Test Period
Run the offer for a few periods. If it fails, plan for the next strategy. You can run an A/B test for your offers based on the price, the item offered and copy. Make sure that you run one testing element at a time, else making the change will never be easy. Testing is always a part of determining the success of an upsell strategy.
Upsell and Cross-sell are the two must-have strategies you need to implement in your eCommerce store to increase the average order value and maximize the profit. Adopt upsell and cross-sell in your eCommerce app. Generate maximum revenue for your store.
