How To Leverage The Power of Cross-Selling to Drive Profits
Cross-selling on your e-commerce site is an effective way to increase sales and boost customer loyalty. It allows you to offer additional products that the customer may not have considered but could make their lives easier or more enjoyable.
This can be anything from related products that complement your primary offering, like a mouse pad for a laptop, to associated items such as a battery pack for a phone case.
Cross-selling isn't just about increasing revenue; it's also about building trust between you and your customers.
If you can find ways to add value to their experience with your brand in every interaction, they'll feel more confident about buying from you again in the future.
However, it can be tricky to know where to start when identifying opportunities for cross-selling on your site or mobile app. That's why I've put together profit-driving best practices for you below.
A brief overview of cross-selling
Cross-selling is a sales tactic in which you encourage customers to add complementary products to the orders they've already placed.
Cross-selling can benefit nearly every type of business. Still, it's vital for e-commerce stores because it helps boost your average order value (AOV) and get more money from customers who might otherwise leave without making a purchase.
Check out these quick ways you can integrate cross-selling tactics right now:
On your product pages: When someone views one of your product pages, include links for related products in the sidebar or footer so they can easily hop over there if they want something else. Suppose you sell clothing online, offer suggestions like shirt sizes and colors or other accessories that go well with each type of shirt (e.g., "Ready? Sold.").
At your checkout: Offer your customers additional products when they reach checkout and invite them to click through to those pages before checking out if they have any questions about their choices—or want some more information about what else might work well together with what they already have selected at this point (i.e., "Buy now. Ready? Sold. Buy now. Ready? Sold.).
Psychology behind why cross-selling works so well to increase profits
According to research by social psychologist Robert Cialdini, there are several reasons why cross-selling works.
The first is reciprocity: When someone does something for us, we feel obligated to return the favor. This can be as simple as offering to help carry your groceries home from the store or taking your change back when you pay for something with cash.
A cross-seller who offers an additional product or service is essentially doing something nice for their customer—and because humans are inherently social beings, we feel obligated to return the favor.
Another reason is commitment and consistency: Once we've decided something—even if we're not entirely sure why—it's hard for us to go back on it.
Nonetheless, one of the most important things to remember about cross-selling is that it helps your customers feel good about their purchases.
When you give them the option to buy additional things that will make their lives easier, better, or more fun, they feel like they've made an intelligent choice. They're not just buying something—they're getting a fantastic deal on something else too.
And if they're not sure they want it? Well, they can always pass on that offer later and still feel good about their initial purchase.
Plus, when you have a customer looking at one thing, it's easy for them to see other things that might be useful or interesting. You can present those options to let them know they're still getting a great deal.
Cross-selling vs. upselling
Cross-selling and upselling are two sales strategies that are often confused.
Cross-selling happens when a salesperson recommends additional products to a customer who has already purchased another. For example, if you're buying a television from Best Buy, the salesperson can suggest you also purchase an HDMI cable and remote control for your new TV.
Upselling occurs when a salesperson tries to sell a customer a more expensive item than they originally wanted. To illustrate, if you go into Costco looking for store-brand paper towels but end up walking out with Bounty paper towels after the cashier convinces you of their superior quality and durability.
Now, let’s move on to revenue-increasing tips for cross-selling.
Best practices to improve your cross-selling strategy
Avoid distracting content.
You've probably heard the maxim that "less is more." This is certainly true when it comes to cross-selling. You want your cross-sell items to be prominent, but you don't want them to distract from the product itself or your content.
Use a clear call to action (CTA). If you have multiple products available for purchase, ensure you're directing customers toward the one they'll most likely want next. While you have several options for what you can do, I recommend using a CTA button with solid branding and text such as "Shop Now" or "Add To Cart."
Include just one photo per product page. Your customer should know exactly what they're buying before visiting another page on your site. It's also important not to put too many images into one listing, as this can cause confusion and make it difficult for people who are shopping on mobile devices or tablets where screen space is limited; your shoppers may scroll past valuable products because they feel overwhelmed.
Bundle products together.
Bundling products together can help increase sales, average order value, conversion rates, and customer loyalty.
The practice of bundling is a powerful way to create more value for customers by selling related products together at a discounted price. This creates an added incentive for them to purchase since they get more bang for their buck.
It also reduces the number of steps from checkout page to the buy confirmation page because you're only asking them to complete one transaction instead of multiple ones.
The simple act of bundling can increase customer satisfaction and repeat purchases because it makes things easier on both sides—the shopper gets what they want at a lower price. At the same time, you benefit by increasing sales volume and average order value (AOV).
Ask for reviews.
One of the easiest ways to get reviews is through social media. Once you've connected your store to Facebook, Twitter, and other platforms, use their review prompts to ask customers for a quick review after they make a purchase.
In addition to social media, this practice can also be used on your website. Use a popup or email that asks customers to leave reviews after they complete a transaction on your site.
To encourage even more engagement from shoppers who may not have previously considered leaving feedback for your business before now, consider offering them an incentive in exchange for their time (like free shipping). This is especially helpful if you don't already have reviews from past customers.
For those stores that prefer not having any popup direct them toward leaving feedback (or any other automated message), alternatives are available.
One such option is called Yotpo — it allows users complete control over when messages will appear based on specific events like order confirmation emails or "thank you" pages after purchases are made online.
Engage your audience.
Ask them questions. Asking questions is a great way to engage your audience and get them to interact with you, ultimately leading to more sales.
Start with basic questions like, "What products have they bought?" or "What are they looking for?" When they reply, you can give them suggestions based on their responses and what they've already purchased from you in the past.
For instance: "We see that you recently bought [product]. Do you think [other product] would be useful as well?"
You could also ask specific questions about the preferences of certain groups of customers—for example:
How many people use this product?
How often do they use it?
Where do most people use this product?
What is the average age range of people who purchase this item from us?
Who uses [this type] most often?
Cross-selling is a great way to encourage sales, but don't go overboard.
Cross-selling too much can be distracting and cause your customers to feel overwhelmed by the number of offers they see. So, try not to cross-sell in a way that distracts from the primary offer you want to promote.
Keep it sinple.
Start with what you have.
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