How To Use Upselling To Generate More Sales
How To Use Upselling To Generate More Sales
eSources is the Internet’s largest wholesale directory of verified wholesalers, dropshippers, manufacturers, importers and trade distributors. Start your online retail business today at http://www.esources.co.uk
One of the best ways to make additional sales is to associate one product with another. Supermarkets do this by displaying crackers on a counter underneath the refrigerated case of dips and spreads. Or, adding basil, olive oil, parmesan and pine nuts to a display of tomatoes (which makes pesto for those who are wondering where this is going).
Online retailers can do the same thing by showing blouses that will complement a skirt being viewed (cross selling) or suggesting a power drill with more power (up selling) for the customer who wants better performance and a cleaner opening. (And who would not?)
Underscoring the value of cross selling, Amazon.com noted that in 2006 thirty five percent of its sales came from cross selling! If you do not understand, go to Amazon.com and look for any book or movie. There will be information telling you that ‘other customers who bought this book also bought’ or ‘frequently bought together’ information.
Interestingly, even though fifty five percent of Internet retailers plan to include more cross selling and up selling on their websites in 2009, many of them do not really have the tools to measure how well it works or, have simply not measured how well it works.
In fact, forty to fifty percent of Internet retailers admit to not knowing how well these techniques work.
Even if your web analytics tools do not have all the power you would like them to have, one of the ways that you can begin to measure the impact of cross sells and up sells is to look at the conversion rate for visitors who buy products that have cross sells or up sells attached to them versus products that do not. It is certainly not a perfect measurement but it begins to get at the issue.
In the meantime, there are some general guidelines that you can follow in establishing your cross sell and up sell strategies.
Cross Sell Strategy
Customers tend to purchase additional associated products when they are purchasing products that are more considered, less impulse, as long as the products are lower in cost and are truly relevant to the product under consideration. Cross sell also works well with low priced products such as office supplies or hardware.
Cross sell usually does not work when the additional product is higher priced. If someone is coming to your camping site to buy socks at $10 a pair, they are probably not prepared to purchase $150 shoes as well.
Up sell strategy
Up sells tend to work when the higher priced product is still within the same general price range but is perceived to bring higher value.
Up sells will not work if your alternative suggestion is different enough that it does not meet the same original need. For example, if your Brand X alarm clock has large illuminated numbers, a snooze alarm and choice of alarm sounds and your up sell Brand Y alarm clock has large numbers, a snooze alarm and more choice of alarm sounds at 10% more, it may fail because the illumination is important to the customer.
You also need to keep in mind that you may have contractual obligations to not show Brand X and Brand Y on the same page. Be sure you have thought through these kinds of issues before trying up sell as a strategy.
Service Availability: Most services reviewed by this websites are available in the United Kingdom. This includes the following cities and their surroundings: London, Birmingham, Leeds, Glasgow, Sheffield, Bradford, Edinburgh, Liverpool, Manchester, Bristol, Wakefield, Cardiff, Coventry, Nottingham, Leicester, Sunderland, Belfast, Newcastle upon Tyne, Brighton, Hull, Plymouth, Stoke-on-Trent, Wolverhampton, Derby, Swansea, Southampton, Salford, Aberdeen, Westminster, Portsmouth, Oxford, Newport, Norwich, Cambridge, Gloucester, Bath, Canterbury and others.
Looking For More Information?
Make sure to explore other articles in the Uncategorized category or contact us to suggest a website or a service to review.
|
|
