Cross-selling and up-selling seem to be familiar terms for most businesses. They play an important role in boost sales, especially on Magento Ecommerce websites. Although cross-selling and up-selling are activated in different ways, the general objective is to make clients buy leave another purchase. So, what is cross-selling and what is up-selling in Magento Ecommerce?
On a Magento eCommerce website, the seller does not upload only a product detail on a page but also the images, some info and the links to the other product pages under the main item. Those may be the necessary accessories relating to the main item or anything which got the clients’ notice. For example, if you buy a fried dish, the seller will recommend some kind of drink, and you may see the reasonability and purchase it, too. The process above is called cross-selling in Magento.
The way traders use this cross-selling method is simply to target consumer behavior. There are 2 main well-known behaviors of consumers: impulse buying and consumer surplus.
Impulse buying works as a motivator who makes clients buy the other items suddenly. By analyzing customer behavior using the tools available, vendors can predict the items that their customers may need. They will bring those items to prominence on almost every page that visitors browse. So, clients will make their decision in buying unplanned products. Then, the business gets extra revenue.
Consumer surplus hits customers’ overall sentiment. When they buy a product, then, they are suggested to buy another product, the total amount of buying them at the same time will be lower than the total amount when buying each item individually. Cross-selling is like a method helps customers save money while still buying the desired item but also helps the seller boost sales more quickly.
How to utilize cross-selling on Magento eCommerce websites
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Instead of trusting the seller, customers tend to believe in the choices of other buyers. That’s why the cross-selling sites often add the phrase “other customers also buy” below their product pages. Most shoppers choose to check in on items and will probably decide to buy that item right away or redirect to another suggested item. This process will be repeated until the client decides to pay and finish their purchase.
Email marketing is another way to enable cross-selling. For online customers, they will leave their contact information, email, etc.. for the seller to deliver the goods. Therefore, use the email available to give suggestions to customers even after they have finished the purchase. With customer behavior analysis tools, traders can predict which items are most likely to be purchased so as to send to their customers.
Some ideas help cross-selling be effective
- Know your clients well, depend on each client’s demand to recommend the new items.
- Irrelevant items should not appear on the page. Each customer may be interested in different related items. For example, both customers want to buy a bag, for the first one, you should recommend some bottles because he/she has clicked on a bottle item before; The second person may need to buy the book because he/she has flipped through a site selling book, you need to recommend the book instead of the bottle as the previous customer.
- Clients usually feel happy if they are offered. Suggesting the new items with limited promotions will help to convince clients easily.
- In addition, suppliers can also recommend customers buy combos that include many other items at competitive prices. So, buyers will feel they have a good deal while sellers can sell difficult retail items by encapsulating them in combos
Similar to cross-selling, up-selling is also a plan to motivate buyers to buy another product. Additional suggested products are also located below the main product on product pages. The difference here is that instead of suggesting similar products with similar prices, vendors suggest more quality products at higher prices.
For customers who care more about quality than the price, the up-selling strategy of businesses has been half successful. The important thing to remember when applying this strategy is that the vendors need to show the buyers the benefits that the product offers while the cheaper products do not. Customers always need reasons to make purchase decisions. Providing customers with benefits from a product is the reason to convince them to buy one item instead of another.
Some tips for making up-selling efficient
- Upgrade: As mentioned above, when marketing a more expensive item, the seller must provide additional benefits that item brings. Use this method to motivate clients to upgrade their desired products or services.
- Quantity: Instead of being content with the number of items the customer has chosen, suppliers can suggest whether customers want to buy more items at the same time and offer incentives such as reduced shipping charges.
- Discount offer: Promotion strategy can make both clients and sellers satisfied. One can be happy when saving an amount of money, and one can be happy when selling many items at once.