In this time and age, when competition is more aggressive than ever, every company’s main target is to find ways to improve their revenue strategy and eventually find the best practices they need to focus on what works for them.Marketers today have become more hands on with testing and trying what works best. Click To Tweet
Based on this experience, they got to know how to make their ecommerce successful and profitable.
Many of you, if not all of you, know that driving incremental sales from a current customer costs a lot less than acquiring new ones.
This article is dedicated to show you how to increase revenue by cross-selling additional products to your e-commerce customers, new and old ones. In few words cross-selling strategies allow marketers to drive more profitable behavior from existing customers.
What is cross-sell and why should I use it?
Cross-sell refers to a strategy of recommending additional products based on customers’ previous orders. For example, if your website visitor proceeds in purchasing a pair of brown Oxford shoes you can try cross-selling your products by adding the same color leather belt or even a matching pair of socks.
Every customer leaves their footprints behind. In order for a cross-sell campaign to be triggered automatically, you would need to set real-time integration with your e-commerce, recommendation engines and customer support systems.
ContactPigeon has set it up for you and gives you the ability to observe sales, web analytics, email response and preference data, via its platform.
This gives you the chance to create effective email cross-sell campaigns to increase revenue from your e-commerce customers by recommending
- similar products
- items of their interest
- or even same category merchandise.
Trust us, they will be very happy to receive a personalized cross-sell campaign that shows that you know what they like and they will appreciate you for it.
Research has shown that 82% of people said that they would buy more products online via email if the emails they received were personalized around their preferences. Have a look below and find more about the best email cross-selling strategies.
5 simple cross-selling strategies. Increase your revenue from your customer base.
“Shop the Look” approach
This is a standard strategy used by most retailers. It is quite effective as it gives the client the information and the idea of how a product they picked, would match perfectly with a similar product you recommend.
“Shop the Look” strategy is popular in the apparel industry and a great example is that when you choose a pair of pants, the model who wears it on the check-out page has a complete look.
Here the retailer can take advantage of ‘‘shop the look strategy’’ by showing you that you could add a shirt and perhaps an accessory to complete your look. Subtle and effective!
A minimal version to “Shop the look” from Trunk Club
“You have great taste” approach
There are many companies in the beauty and apparel business that use this strategy. I know what you are thinking already… it’s all about psychology ha? Well sometimes it is and this is what the e-commerce industry is counting on! It is very convincing and to be honest who doesn’t like to be told that they have great taste?
We, at ContactPigeon, are excited to hear that and would most probably agree with them (hahaha). ‘‘Do you like this emerald green leather bag? We love your taste, so maybe you can have a look at the green wallets and key chains we have in store for you. Together they would be a match made in heaven.’’
Automatic cross-selling strategy: customers who bought this product also bought
This is a great feature to have, by taking your clients past purchase history and behavior, you can set automatic triggers that will associate products based on their likes.
Some of the biggest e-commerce businesses use this strategy like Αmazon and eBay, so don’t be afraid to use it too. Is someone looking for outdoor equipment? Show what other visitors, who looked at the same product or same category, also bought.
Value Proposition strategy: Add $10 or less to your basket and get free delivery on your order
This is what somebody would call a win-win situation! Do you want your client to choose another product? Then be prepared to offer a value proposition to intrigue them. There are plenty of companies who set free shipping standard delivery when you spend a specific amount of money.
You can easily set a trigger for those people who can reach this amount without spending more than just extra $10 or even less. Once they checkout, they will receive a pop up message saying i.e. ‘‘Spend extra $6 and get free shipping!’’ It is highly likely that they will do it.
If you want to make your clients feel like they are getting a great deal, then this strategy is for you. Commonly used in the services sector such as mobile and internet or even retailers such as beauty departments, it will make your customer get an extra service or product at a better price which will make the overall price so attractive, that no one can resist.
This strategy will look more like a bonus to the customer and should be positioned at the end of the sell rather than the beginning.
Hope you enjoyed reading this article as much as we loved composing it. Choose your preferred method and start building your strategy. The Pigeons salute you!