In this article we discuss two sales techniques which are often used in both online business and offline business to increase revenue and profit in a fast, simple and easy way namely “Up-Selling” and “Cross-Selling”. These are common techniques implemented throughout a business process.
Up-selling is a sales technique that a seller applies to motivate their customers to buy another more expensive product with more features than what he planned to purchase at first in an attempt to make a larger sale. It is like a customer who buys an iPhone 6+ instead of iPhone 6 after hearing a great number of cutting edge features of the latest version and its promotion.
To be able to up-sell effectively, the first thing you need to do is to be aware of the needs of the customer and to comprehend how to make the questions to find out the necessary information in order to understand their real needs. You also need to be well-equipped with adequate knowledge about the products being sold as well as price, promotion related and the relationship between this product to other products. From these points, a business can introduce the right one according to its customers’ needs.
This is also a popular technique which is employed to inspire a customer to buy more items related to what he has just bought. It means after purchasing his iPhone 6S, the customer will be offered more some accessories such as a case, USB charging cable, shell holster, back cover, etc. Another typical example about cross-selling which we usually see in a fast food store is: “Would you like fries with that?”
In order to cross sell you need to ensure that you have enough additional products and make clear which are the well-matched couplings or perfect triads. You may also tie them up in a bundle with a more attractive price than placing each item individually. That will be a good hook to push the customers to pay more and increase your order value.
In traditional commerce, these sales techniques rely heavily on the talents of a salesman; yet in e-Commerce, it is a technique used when building a website system. An extension or store which can integrate both up-selling and cross-selling function is a must-have to be able to track your customers as well as their behaviors and automatically recommend more similar products and accessories based on your websites data. Contact Us for more information if you would like help in managing an effective up-selling and cross-selling campaign on your Magento store.