Cross-sell and Up-sell - what's the difference and how to raise the amount of the order?
There are two popular approaches for increasing the profits of the online store: Cross-sell and Up-sell (cross-selling and raising sales amount).
Often in the literature, both approaches are not translated or explained in sufficient detail. Therefore, we will try to show how they differ and how to use them!
Up-sell or raising the sales amount is the motivation of the buyer to spend more money in your store, for example, to buy a more expensive model of the same product, add options or services to the product being purchased.
Cross-sell or cross-selling - this is also the motivation of the buyer to spend more money, but already through the sale of goods from other categories than originally chosen by the user, i.e. first of all the sale of related products
Both terms are often used interchangeably, because in both cases one task is solved - increasing the profit from one order. However, an understanding of their differences allows you to better organize both ways and more effectively raise profits from the order.
Consider an example
Let the customer look at the iPod Nano 4GB product page.
The side column displays:
- 8 GB iPod Nano
- 8 GB iPod Touch
- 16 GP iPod Touch
Under the buy button are offered accessories:
- Apple In-Ear headphones with microphone
- Skull Candy Headphones
- ITunes Map
- 8 GB Microsoft Zune
Below is a panel with popular products:
- MP3 Player 4 GB Creative Zen
- Portable DVD Player
- Griffin FM Transmitter for Car
In the example considered, the side column is used to raise the sales amount (Upsell), since it offers more expensive models with a large amount of memory or a more advanced screen. The buyer can be tempted by these models, deciding that with a slightly higher cost, the advantages are worth it.
Accessories under the buy button in the example carry out both cross-sell and up-sell. The iTunes card expands the product's capabilities, and therefore carries out up-sell, the headphones are complementary goods and carry out cross-sell.
The panel with popular products can be called the third way to motivate the buyer to increase the amount of the order. Seeing the popular portable DVD-player, the buyer can add it to the basket, remembering that he had long wanted to buy something like that.
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There are no universal words under which it is necessary to show the recommended goods to the buyer. Choose suitable for your assortment and watch what words work better. Here are a few options:
- "You might also like:"
- "With this product they often buy:"
- "Those who watched this product, then bought:"
- "Often buy together:"
- "Product of the week:"
- "Other goods of the brand X:"
- "Looks good with:"
Direct recommendation "recommended products" works the worst. You should choose the words that best recommend the products, explaining why they are recommended.
You can implement recommendations on the InSales platform through related products (by cross-sell and up-sell), and also by creating additional hidden categories displayed in the sidebar of the online store (in which you can place week's products or special offers).
Total, we have analyzed what ways to increase the amount of order exist. What is their difference, what words to accompany them and how to wind up in the back office of the store.
Try, experiment and see how this affects your sales.