Oct 18, 2021
Who wants to make more money? You might say, we know, we have to buy ads, or send more emails. Discount everything, or post on social media EVERY DAY.
Actually, no. This tactic that takes about 5 minutes to set up will grow your sales without ads, emails, discounts, or more content, …
… and that is by using Cross Sells.
These terms are tossed around a lot. What do these mean. How can they help you grow faster? Why do they matter?
It all has to do with Average Order Value. This is the Average Value of all of the orders from your site. So if every single customer buys your $15 dollar tshirt and only your tshirt, your Average Order Value or AOV is $15. But what if you could raise that AOV. If you somehow got everyone to spend a little more money or to buy one more thing, you’d grow your profits instantly. And we do that with Cross Sells and Upsells.
Cross Sell and Upsells are ways to raise this Average Order Value.
McDonalds was one of the first to be successful with “Would you like fries with that?”
That simple question is enough to get you to raise the value of your order. Pretty straight forward.
Then they introduced the upsell. Then, They soon moved to “Would you like to super-size that”
To get you to buy the large fries or drink.
Classic playbook from McDonalds.
However, what about online businesses? The king of ecommerce does this flawlessly. Now, love ‘em or hate ‘em, Amazon is the perfect example for how cross-selling succeeds in raising the Average order Value.
Do you ever notice right under the image of the item you’d like to buy, it says “Frequently bought together” and it shows other items that people, well… frequently buy with this one.
If I buy a Chemex, surely I’ll need filters right? This tactic alone makes up more than 30% of Amazon’s revenue. 30%!!!!
So, where do we put this on our site? Amazon shows these in more than one area, so let’s take a look here. Once I’ve added the first item to my cart, Amazon shows it immediately.
One of our customers, the Dave Matthews band. Used a Flyout-style popup to add a sticker for just $5 and they now add over 1000 orders that include that sticker.
Think about a product you have that is low cost, one that would pair well with your most popular product, then create the Cross Sell campaign, target it to anyone that doesn’t have that add-on product in their cart and its a perfect way to raise the average order value for your store. So, let’s dive in and see how to do this in Privy.