Studies suggest that real-time, context-specific product recommendations such as cross-sells and up-sells are responsible for an average of 10 to 30 percent of e-commerce revenues.
These techniques can lead to a boost in revenue by selling more to each customer, or increasing your average order value through upgrades. At the same time, a well thought out and effective cross-sell offering benefits the customer's experience as well, since it allows you to help your customers choose the product that is right for them, and to make sure they have everything they need to use each product to its maximum capabilities.
For example, a good cross-sell for a smartphone is a case. While trying to sell more and increase the average customer order size is of great value, it is important to consider the customer experience and to consider what makes actual sense to show your customers at a point when they are about to purchase one of your products. If you are not suggesting and showing relevant products, you are not enhancing a customer's purchase experience and you are more likely to have poor click through and conversion rates for your cross-sells, and ultimately will likely not increase your revenue.
What is a cross-sell?
The term "cross-sell" refers to the practice of offering additional products to purchasers during the normal flow of the purchase process. The products being offered may vary depending on the original product chosen by the purchaser. You might even choose to offer a slight discount on the cross-sell items - only available when purchased together with the primary product - to further motivate customers to accept the offer.
With FastSpring, you can control the placement of the cross-sell products being offered on the pages of your Web Storefront. Purchasers can select the offered products with a single click to add them to the cart. This increases your sales volume and average order value, and when it is done properly, it helps ensure that customers purchase everything they need to have the best possible experience with your products and with your brand.
For more information on configuring cross-sells, please see Increase Revenue by Creating an Cross-sell.
What is an up-sell?
Like a cross-sell, an up-sell is a type of suggestive sale technique whereby purchasers add an item to the cart and are then offered something else. Unlike a cross-sell, an up-sell is an offer to replace the product chosen by the customer with a different (higher-priced) product rather than adding additional products to the cart.
For example, suppose you offer an online storage service with different storage plans at different price points. When a customer chooses your 5 GB plan, you might offer an up-sell to the unlimited storage plan at a higher price point. As with cross-sells, you might even choose to offer a discount off the up-sell product to convince customers to upgrade.
Here, too, you can control the placement of the up-sell product(s) being offered on the pages of your Web Storefront. Purchasers can replace the product they have in the cart with the up-sell product with just one click, increasing your volume and average order value.
For information on configuring up-sells, please see Increase Revenue by Creating an Up-sell.