You can increase your revenue either by generating more new customers or trying to increase spending of existing ones. Amazon reports that 35% of their revenue comes from up-selling and cross-selling campaigns. Below we present 7 ideas for such actions with use of Marketing Automation. But before you start designing such campaign know that it must deliver real value to customers not just make them spend. What more can you give?
Up-selling and cross-selling: the meaning
Both terms refer to attempts to increase revenue per customer.
- Up-selling: when you offer premium, augumented version, add-ons, more expensive option, e.g. extended warranty on the product
- Cross-selling: when complementary product is offered, e.g. when a customer buys a dress, shoes are recommended
Up-selling and Cross-selling in practice
Use:
- Lead Scoring: up-selling should be addressed to customers that know your offer well, while beginners should be offered with support of dedicated specialist to help implement the solution. Know at what stage your customer is, so you can choose right additional offer for him. Can you imagine that without customer segmentation?
- Seasons: do your business experience high and low seasons? If so, make your communication rhythm reflect it. Conduct up-selling and cross-selling campaigns when your customers are more willing to spend.
- Dynamic banners with recommendations based on purchase history and products viewed by given user.
- Transactional emails (with purchase confirmation or asking for review of product bought before). Such emails show high open rates, what entails increased efficiency. Learn how to prepare a transactional email
- Pop-ups: offer extended warranty, premium version or complementary product.
- Content explaining benefits of premium version. If you want to conduct up-selling campaigns, it must be crystal clear to your recipient, what benefit can s/he achieve. Prepare materials on the topic – it doesn’t have to be plain text. Use video, infographic, tables.
- Customer service: no matter how sophisticated and relevant rules of automation you set, your customers won’t come back to someone who disappointed them – offered deficient product or didn’t react to negative feedback (read more on handling negative customer opinion).
What to recommend?
- Products from wish-list. Wish-list allows you to suggest to customer products we know they want. Seems trivial, but it really works!
- Products viewed by customers or added to cart but not purchased
- Products bought by customer who bought the same product. (you can enrich analytics of products purchased or clicked with more precise analytics of viewability – thanks to SALESmanago and Copernicus – Machine Learning & AI)
- Products from the same category (least reliable criteria of recommendation. Use it when you don’t have enough data on customer behavior)
- Extended warranty (let customer buy it later, after purchasing the original product, as Best Buy does)
- Premium version
- Add-ons
- Additional support and consulting.
Don’t overlook your existing customers!
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