Jun 01, 2022
Richard Clews founded a company called Pant’s and Socks, a company which sells… well you know, wanted to encourage customers who bought one product, to buy the other. So, he encouraged buyers to buy matching pants and socks and within 6 weeks, he saw a 12% revenue spike. And still, the company sees about 8–12 percent in new sales from cross-selling tactics like emails, subscription upsells, and product page suggestions.
Cross-selling is a simple concept, but getting it right requires strategy and care, so you recommend the right products in the right way. Here’s how to get started.
But first, What is cross-selling?
Cross-selling is a sales technique in which a customer looks at one item, and a retailer recommends other products that complement or are related to it. Cross-selling can happen in person (as in “do you want fries with that”) or online, and This isn’t a new strategy — Amazon has been cross-selling for years with its “people also bought” displays on product pages. But many small and mid-sized businesses don’t have cross-selling techniques in place, which means they’re leaving money on the table.
So, If you’re just starting out with cross-selling, here are some basic rules to follow so that you can get the best value out of your efforts.
First, Follow the data
Examine your post-purchase data to determine the best cross-selling options for your site. Look for patterns in customer behavior. Did someone buy an item and then come back later to get a related item? That could be a good cross-sell opportunity to display on both product pages.
Once you see patterns, you can analyze that data and create user profiles based on those patterns. Do people with a cart value of $100 or greater seem more inclined to purchase higher-ticket items? Or do they buy items on clearance? Then, Target them with a relevant popup. After you have your user profiles in place, you can use an interface like Privy’s to set up your cross-selling popups to provide your customers with the items you predict they’ll buy.
Second, Try multiple forms of cross-selling. At Pants & Socks, the company found that three different types of cross-selling worked: Emails: So, When customers purchase socks, the company sends a promo for matching pants. And when a customer buys pants, they’re sent an email to buy socks.
The Product Page, where The company displays coordinating socks on pant pages, and vice versa.
Lastly, Subscription Upsells: or When a customer subscribes to a recurring socks or pants package, they receive a message to get the other kind as well.
Not every strategy will work for every company. For instance, At Surf Gear Lab, the company cross-sells at pre-checkout and during checkout. At pre-checkout, it shows the customer three to four products related to what they’re buying. Then, at checkout, it displays a popup with one related product. And for Surf lab, those increased their monthly revenue by 28%
Now, third and most importantly, Only show items that your customer will value
Promoting irrelevant products can drive a customer away. People who purchase a skateboard should be shown pads and a helmet, not cookware or electronics. .
In the same vein, you also want to ensure you’re not making too many cross-selling suggestions. Overwhelming your customer with suggestions isn’t prioritizing their experience.
So, do the research, figure out what your customers are buying and how they're buying it. Then, use a tool like Privy to send perfectly timed cross-sell popups and and emails.
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