Posted by Craig Abramson, Director of Marketing, Dydacomp
Best Practices for Cross-Selling
More important than having a cross-sell feature is using one to its full-advantage.
- Perceived benefit is essential to the success of any cross-sell item. When considering which items to display, think carefully about which additional items would complement the purchase or consider items that a customer would need to make it work. For example when selling an HDTV, great cross-sells would include cables to connect peripherals, a Blue Ray player, or a universal remote. Cross-selling items that are useful or necessary increases the relative value of the main purchase item and minimize the feeling that the customer is being “over sold.”
- Cross-selling is most effective when the additional items cost at least half as much as the main purchase. In comparison to the $600 HDTV, a $50 universal remote is an inexpensive accessory and an easy add-to-cart item.
- We are all visual creatures. Cross-sells with eye appeal are winners in the online marketplace. Selling an e-reader? Stylish cases are a shoe-in.
- Mind the brand. For many items, electronics, handbags, and accessories for either, a cross-sell of the same brand will sell better. For example a customer purchasing a Coach handbag is more likely to purchase a corresponding Coach wallet to go with it than one made by Nine West.
- Pair it with a shipping offer. Making an offer whereby orders over a certain dollar value qualify for free shipping reach the free shipping purchase threshold.
- Offer “Buy Together” Incentives. Presenting a slight discount when an item along with a cross-sell item are purchased together
- Consider the offer wording. “Customers who bought x also bought y” may appeal to a shopper because it implies that the offered product is popular, necessary, or a smart buy. On the other hand, using the phrase “May we also suggest” is a softer approach that make take some of the push out of the offer.
As with all selling tools, your offers need to take financial results into account such as the individual margins of your company and product lines. On the other hand, the long-term benefits (customer acquisition, retention, and overall customer value) should be weighed as well.
To be continued…