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Five ways to Improve online cross- and up-selling


Source: Webcredible, 23 July 2008
Submitted by Cyprian Wong

We've all been cross- or up-sold to. We reach for the magazines or sweets at the supermarket checkout counter. We purchase games the sales person suggests for our new game console. We gleefully pour over the options list for our new car. Cross-selling is selling an additional product to existing customers, usually related to what they've already bought. Up-selling is selling a better (but usually more expensive) product to customers, after they've decided on a cheaper product.

Cross- and up-selling isn't difficult as you're selling to people who want to buy. The key is to do it well. Here are a few tips on how to cross- and up-sell online more effectively.

1. SUGGEST THE CORRECT PRODUCT
Customers are more open to cross-selling if the products being suggested are products they actually need. Suggesting a DVD player after they've bought a digital camera isn't helpful. But, a memory card or a camera bag would be. Similarly, offering travel insurance or car rental after users have booked a flight is also helpful. More and more sites recommend matching products (eg a matching hat when a customer purchases a shirt. or a matching camera case for a pink camera). Users generally appreciate this thoughtful gesture.

2. PICK THE RIGHT TIME
Customers tend to be very task-focused when they're trying to get something done, so recommending a product whilst they're doing this is usually ineffective. What you can do is recommend something once they've completed their shop, or after they've put something into their shopping basket. For example, don't try to sell users a memory card when they're browsing for a digital camera. Do it after they've put the camera into their shopping basket. Or recommend a tripod, camera bag or maybe even a camera bundle. They'll be far more likely to add some or all of these items then.

3. SHOW THAT YOU CARE
Customers tend to be very sale- or bargain-focused. Highlighting special offers will increase conversion rates and improve basket size. For example, if users put a regular chicken into their shopping basket, suggest an organic chicken on special that might cost a little more than the regular chicken, but one they might not normally consider at full price.Bundles are an excellent way to boost online sales and increase customer satisfaction. Bundled products are usually cheaper than individual products bought separately. Recommending bundles will endear you with customers (as you're helping them save money), hence increasing customer satisfaction.

* Place items on special at the top of any product listing
* Highlight bulk buy offers (e.g. buy 10 of these and save £10)
* Recommend bundles to customers

4. DON'T BE PUSHY
No one likes a pushy sales person. Up-sells and cross-sells should be recommendations, not forced onto site visitors. Phrases like 'We think you'll like this' or adding small items to users' shopping baskets will usually annoy them. Here are a few appropriate phrases:

* Use 'popular items' to show the items most popular among shoppers
* Use 'customers also bought' to highlight items that other people bought
* Phrases such as 'you might like' gives the power and choice to decide back to the users without imposing
* Avoid automatic opt-ins

Amazon and the Apple Store's recommendations are successful as they're unobtrusive and don't impose on customers. On the other hand, most budget airlines sneakily add optional items such as travel insurance and equipment protection into passengers' itinerary. Unwary customers will pay the extra charges unknowingly, and are often quite annoyed when they find out.

5. OFFER ALTERNATIVES WHEN CUSTOMERS SEARCH
Users will often use site search when unable to find a product using the primary navigation. They are likely to leave if the site doesn't return useful search results, so offering alternative search terms can keep visitors on your website and increases the chance of a sale. For example, if users search for 'pink Macintosh' and the site doesn't return a valid result, prompt them to try searching for 'Macintosh' instead.

 


External link to another web site Associated Link:
Webcredible - user experience consultancy


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