What are cross-selling and up-selling and the difference between them?
Upselling is asking and encouraging customers to purchase a comparable higher-end product than the one chosen. This technique aimed at selling more expensive products, upgraded or premium version of products.
Cross-selling is inviting customers to buy related or additional items. This technique can help enhance sales performance visually.
How to apply cross-selling and upselling technique effectively?
1. Deeply understand the difference between them
Let’s make 2 examples to distinguish them:
At a fast-food store, the cashier may ask you a question like, “Would you like fries and coke with that? It will make your meal better” – That’s exactly how they do the cross-selling – sell the additional food/drink with the thing you’ve just chosen.
If she/he ask you another question which is somehow the same to “We are offering the promotion for this kind of drink, if you buy a 500-ml-cup of coke, you will only have to pay 2$ in addition to this of 350-ml-cup” – So, they are practicing up-selling technique on you!
Remember those case studies and you can apply them to your online store.
2. Be careful with the number of the related products shown
If you don’t want to bombard your customers with suggestions, don’t suggest too many products in the Related block. They’ve already made a purchase from your store, that means they believe in you. So keep that trust by suggesting which are really worth it. In addition, the number should be limited under or equal to 15 items. With our Magento 2 Tabs Pro, you can absolutely manage that number, and customize the tabs inside the block. Furthermore, you can display the related products neatly.
3. Think about problems and offer solutions that map to products.
Before calling or sending email to your customers in order to sell something, take some time to review the insight of them. That way, you’ll have a clear idea about which problems they are facing, and exactly which of your products, you can try to cross-sell or upsell as a possible solution.
For example, you cannot sell another cell phone of the same function but the new model for your existing customers who only care about how the phone work. In this case, try to think about other situations that may occur and then sell the “solution” for that. Hence, they cannot say “No” if you point out exactly their weakness.
Your e-commerce store can do upselling and cross-selling depending on the products clicked on and selected. If you do it in the right way, you can encourage them to buy more and be your loyal customers.