This article provides an overview of cross-sell and upsell promotions.
Studies suggest that real-time, context-specific product recommendations such as cross-sells and upsells can account for an average of 10 to 30 percent of ecommerce 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 product offering benefits the customer's experience as well. An upsell can help your customers choose the product that is right for them. A cross-sell ensures that customers 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 essential to consider the customer experience. If you are not suggesting and showing relevant products, you are not enhancing a customer's purchase experience. Thus, you are more likely to have poor click-through and conversion rates for your cross-sells, and they 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 customers during the normal flow of the purchase process. The products you offer may vary depending on the original product chosen by the customer. You might even choose to offer a slight discount on the cross-sell items--only available when purchased together with the original product--to motivate customers further.
With FastSpring, you can control the placement of the cross-sell products being offered on the pages of your Web Storefront. Customers can select the offered products with a single click to add them to the cart. This feature increases your sales volume and average order value. When you do it 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 a Cross-sell.
What is an Upsell?
Like a cross-sell, an upsell is a type of suggestive sale technique whereby customers add an item to the cart and are then offered something else. Unlike a cross-sell, an upsell 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 upsell to the unlimited storage plan at a higher price point. As with cross-sells, you might even choose to offer a discount off the upsell product to convince customers to upgrade.
Here, too, you can control the placement of the upsell product(s) appearing on the pages of your Web Storefront. Purchasers can replace the product they have in the cart with the upsell product with just one click, increasing your volume and average order value.
For information on configuring upsells, please see Increase Revenue by Creating an Upsell.