Knowledge of upselling and cross-selling is essential for e-commerce marketing.
This time,UpsellとCross-sellingのBenefitsやStrategyI will explain this.
Be sure to take advantage of this to boost sales on your company’s online store.
What's the difference between upselling and cross-selling?
Upselling and cross-selling are,
These are both methods for reaching out to customers who are considering a purchase.
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Revenue = Average Revenue Per Customer × Number of Customers
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To put it simply, in online retail, sales are"Average Revenue Per Customer" × "Number of Customers"You can calculate it using this formula.
Upselling and cross-selling are"Average Revenue Per Customer"Things that caught my attention.
This is a strategy aimed at increasing sales by raising the average revenue per customer.
In recent years, in the field of e-commerce marketing,
"Maximizing LTV"This way of thinking is becoming the mainstream view.
Key points to focus on to improve LTV are"Average Revenue Per Customer"That's it.
When the "average revenue per customer" increases, it leads to an increase in LTV, doesn't it?
Let's understand the differences between the two and determine which is more effective by conducting tests.
What is an upsell?
Upselling refers to the practice of, when selling a product,
"Selling higher-end products or higher-priced items from the same product line as the product the customer is considering purchasing"That's it.
Try to picture a hamburger shop.
Have you ever been told, “You can upgrade your fries to a large size for an extra 30 yen”?
By letting people who were planning to buy a size M know that the size L is a better deal,
A strategy aimed at encouraging customers to buy higher-priced itemsThat's it.
In online shopping as well,Multiple setsやTop-Selling ProductsThis applies to encouraging customers to make a purchase.
What is cross-selling?
What Is Cross-Selling?"Recommending Product B to people who have purchased Product A"。
Just like before, try to picture a hamburger shop.
I’m sure you’ve had the experience of a server asking, “Would you like something to drink with that?”
こas shownRelated Products"Cross-selling" refers to strategies designed to encourage customers to purchase these items.
Two Points to Keep in Mind When Conducting Upselling and Cross-Selling
Did you understand the difference between upselling and cross-selling?
The two areMeasures to Increase "Average Revenue Per Customer"However,
Depending on how you say it,A Drop in ReputationやCustomer ChurnIn some cases, this can lead to...
Make sure you fully understand the points to note, and
Let's aim to increase sales through upselling and cross-selling.
Accurately understanding customer needs
Try to picture yourself shopping online.
How would you feel if, while shopping for a beauty serum, you were pressured into buying a hair care product?
"They're so pushy, even though it's not something I want..."
"I guess the goal is to get people to buy a lot..."
To the company selling the product,Negative emotionsDon't you think you might end up with one?
When you try to increase sales, you inevitablyThe Seller's PerspectiveIt's easy to end up that way.
If we focus solely on our own profits and recommend products that don't meet our customers' needs,
When a customerHigh-pressure salesSometimes I feel as if I'm being treated that way.
The possibility of canceling the purchaseThat is also a possibility.
When it comes to e-commerce marketing, what’s important is,
Not just the benefits for sellers, but also"Thinking about our customers' best interests from their perspective"。
By “analyzing information and recommending products related to those the customer wishes to purchase,”
Based on the needsYou can perform upsells and cross-sells.
Also,Benefits for CustomersLet's find it and share it.
"What are the benefits of purchasing higher-end products or combining them?"
By showing this, customers can visualize what the product will look like after they purchase it.
Past Purchase DataReferring to the following,
It would be a good idea to check what kinds of combinations customers are purchasing.
Also,SurveyIt is also effective to implement this.
We conducted a survey of customers who purchased our products, and
The desire to say, “I wish there were more products like this”Let's get a handle on this.
Judging the Right Moment
Recommend upsells and cross-sellsTimingIt's also important to assess this.
If you recommend multiple products all at once, it can confuse customers, and
Not only might they not make multiple purchases, but they might even stop buying altogether.
To approach them at the right time,
Adjusting Pop-upsThat's one option.
When you add an item to your cartIf you display an upsell or cross-sell pop-up,
The moment you decide what to buyThis allows you to reach out to customers.
What are some ways to encourage upselling and cross-selling?
Next, I’ll introduce some methods for approaching upselling and cross-selling.
Newsletter / Automated Email Series
The newsletter is about our company's productsA chance for customers to learn moreThat's how it works.
Let's try suggesting other products in emails to customers who have purchased an item.
- Empathy for Your Concerns
- Evidence Based on Numbers
(“No. 1,” “Sells one every two minutes,” etc.) - Customer Feedback
such as adding,To encourage users to click on the purchase page URLLet's put some thought into the content.
▼Click here if you'd like to learn about important points and considerations regarding email newsletters
Package Contents
The package includes:It will definitely be openedIn that regard
It is considered a key strategy in e-commerce marketing.
QR codes that link to promotional flyers for bundle products or to purchase pagesLet's add it.
Also,Coupon for your next purchaseIncluding this as a way to aim for upsells is one strategy.
LINE Notifications
On the "LINE Official Account,"
To our registered customers,Mass Distributionand can streamAdvance ReservationIt is also possible to do so.
By regularly sharing product information and special offers,Promote Our ProductsYes, you can.
You can also distribute coupons, so
Coupons specifically for bulk purchases and bundle dealsWhy not give it a try?
Also, it's not just your friends—anyone who uses LINE can see it.
Posts to the Timeline or HomeThat is also possible.
Content designed to encourage new users to buy more productsLet's post it.
Phone
Introducing products directly to customers over the phone is also effective.
A certain product'sRecommending other products when a customer calls to cancel their subscriptionThis also leads to cross-selling.
Even when providing information over the phone,"From the Customer's Perspective"Don't forget...!
4 Specific Upselling and Cross-Selling Strategies
Next, I’ll introduce strategies for upselling and cross-selling.
Find strategies that work for your company’s products, and be sure to try implementing them.
Upselling and cross-selling are"What Should Be the Criteria?"So,
The most effective approaches vary.
Please take a look at this diagram.
① Initiatives aimed at one-time purchases
④ Measures aimed at repeat customers
That's it.
"One-time purchase" refers to a purchase made only once.
Here are some specific approaches for each.
An Approach to One-Time Purchases
Benefits for Multiple Purchases (Upsell)
This is a promotion that allows customers to save money by purchasing multiple items.
- "Buy 2 bags and get free shipping"
- "Buy 2 bags and get X% off"
As such,Coupons that encourage customers to make multiple purchases on the spotLet's try adding it.
Approaches to Encouraging Repeat Business
Include a coupon for their next purchase (cross-selling)
Cross-selling strategies that lead to repeat customers include
Issuance of a coupon redeemable on your next purchaseI recommend it.
While aiming for cross-selling at the time of purchase,Next Repeat Ordercan lead to...
By encouraging repeat business,Improving LTVThat leads to that, too, doesn't it?
Award points on the first purchase (cross-selling)
Award points on the first purchaseThat is,
This is what drives customers to make their next purchase.
Also, if you assign points, when a customer cancels their subscription,
"For example, 'You still have points remaining. Would you like to use them?'"
The Final PushIt can also be used for that.
Selling Bundled Products (Cross-Selling)
Sale of Bundled ProductsThis is a basic cross-selling strategy.
However, because this would make the price higher,
The resale rate will end up being lowThere is data that shows...
By selling “Product 1” and “Product 2” as a set while measuring cross-sales,
A recommended strategy for encouraging customers to continue using “Product 1” is,
＜「商品②」の価格を低めに設定すること＞That's it.
When we actually implemented this at our company, we saw a difference in the repeat purchase rate.
- Product ① only:About 70%
- Product 1 + Product 2 (Low Price):About 90 percent
Not just profits, butCustomer PerspectiveSo, this is a strategy designed to promote cross-selling, right?
Summary
Did you understand the differences between upselling and cross-selling, as well as their benefits?
- Upselling: Recommending higher-tier or higher-priced products to customers
- Cross-selling: Recommending products that are relevant to the customer
The most important thing when it comes to upselling and cross-selling is,
"Recommend what customers are looking for"That.
Let’s adapt our approach based on our products and current circumstances, and use the PDCA cycle to validate effective strategies.
The following article introduces strategies for increasing LTV.
Be sure to check it out!
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Hide&Seek, the author of this blog, is,
We are a Fukuoka-based company that provides advertising and e-commerce platform management services.
Asset Management Services for Over 40 ClientsWe are currently offering this service.
"Sales and conversion rates just aren't going up..."
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