Indians spend close to 6 hours every day on the internet. And 50% of the overall online traffic is on online shopping websites looking for products and services. While this trend has gotten a lot of small businesses to start selling online too, many still lack the marketing strategy to capitalize on this trend. And to stand out amongst the multitudes selling online.
As a digital agency in Ahmedabad, focusing as an ecommerce website development company in Ahmedabad, Flora Fountain, always suggests its clients to start upselling and cross-selling online as a part of their digital sales strategy. In short, this means building features on ecommerce websites that encourage customers to add more products to their cart during or even post checkout. But, what is the difference between upselling and cross-selling? And how can they be used more effectively to increase the size of each transaction and retain customers? Read on…
Upselling and cross-selling are commonly confused, but there is a key difference. While upselling focuses on increasing order value, cross-selling involves making a recommendation adjacent to the original product. So an upsell is more of an upgrade, whereas a cross-sell is a whole other purchase.
Wait, wait… Let’s try it with a more relatable example. When a hungry customer orders a burger at a McDonald’s, the guy on the other side of the counter says, “Would you like some fries to go with it?”
That’s a cross-selling pitch. Now, if the counter guy had said, “You can make this a Big Mac for just X rupees/dollars”. That is an upselling pitch. With the world going digital (yes, we’re not going to stop saying it!), brands can implement the same sales strategy on their websites too… Here’s how!
Shop the look
This technique works well for fashion and lifestyle brands. When a visitor selects a product, say a shirt or a kurta, then the display page will show a small module right below the description, where a high definition picture of a model wearing the said shirt/kurta, along with a jacket, trousers, shoes and sunglasses. Now, this technique should be used when all the products in question are available on the website.
Brands like FabIndia, Ray Ethnic and major ecommerce players like Amazon and Myntra use this method of cross selling heavily to increase the cart value of the visitors on their page. Plus, the customers benefit from this, as they get their desired outfit ready to pick and delivered to them for a flat rate of shipping.
Use side-by-side comparisons
This is a great method of upselling, mostly used by brands that sell electronics and electrical products, where upgrades matter a lot. Let’s take an example of a mobile phone purchase here. When a customer selects a mobile phone model by Samsung, with specific features involving storage, processor speed, camera quality, etc, he/she is shown a module with a slider consisting of similar mobile phones from the same and different brands, but a slightly upgraded version with an increased price.
Since the placement of these products are such that the viewer can immediately compare the look and feel, and the features of the phone with the price difference, there are high chances of him/her picking the upgraded model as they won’t mind shelling out a few extra bucks for a better model.
Frequently bought together
The idea here is to sell supplementary products. Yes, it may sound like the earlier point, but this one applies to almost every type of product, from food, fashion, electronics and even services.
Amazon.in does this the best, even for the smallest product on their website, they will have a suggested product ready to be pitched on their product landing page. For instance, simply try adding peanut butter to the cart. Immediately, you will see the suggestions below, of multi-grain bread and even a butter knife with the title Frequently Bought Together.
Chances are, the customer would add the entire bundle to the cart just like they did for the Shop The Look.
Let’s not deny the fact that everyone loves discounts! We’re pretty sure even the richest man in Asia looks for discounts on the peanut butter he orders. Bundle discounts work great when pitched together with the Frequently Bought Together or Shop The Look technique.
Why does this technique work? Because when a customer buys Product A and Product B separately, he/she might have to pay full price and even separate shipping costs. But when they are offered the main product and the supplementary product for a small yet attractive discount, it forces them to take the deal, since they calculate the discount and the flat shipping rate as savings on the purchase, while the seller gets to increase his/her cart value.
Executing a successful upsell and cross-sell campaign will not only increase the average order value but also improve customer retention. Now that you know how to increase your online sales with such simple tricks, get started!
Or, how about you relax and watch the numbers grow, by hiring ecommerce website developers from the leading software development company, Flora Fountain! Drop us a hello here!