Up-selling and cross-selling and their importance for your online store
Up-selling and cross-selling allow you to increase the value of sales on the basis of acquired customers. The use of these techniques significantly reduces the CAC (Cusomer Acquisitin Cos - Customer Acquisition Cost) thereby reducing the expenses associated with the cost of a unit sale. It has been proven that selling a product to a new customer can be up to 25 (!) times more expensive than to an existing one (source). The use of cross-selling and up-selling allows to reduce the amount of expenses incurred on sales.
What are the characteristics of both techniques? Cross-selling is a model of related sales, which assumes that since the customer has already bought a specific good or service in your store you can offer him an additional, related offer - so-called complementary goods. Cross-selling allows you to increase the value of the shopping cart and, at the same time, does not carry any risks, since the customer has already made the purchase.
Up-selling also seeks to increase the value of the shopping cart, but in a slightly different way. In this case, the seller offers the customer, based on verification of his needs, an improved version of the product. However, it is worth remembering to start the up-selling technique with the basic version of the product or the one chosen at the beginning of the purchasing process. This method requires a better understanding of the customer's needs and a sense of whether he or she is willing to spend more for a product that will meet his or her individual needs. The risk in this case refers to the fact that he or she will abandon the more expensive version in favor of the basic or previously selected one.
Explore examples of the use of cross-selling and up-selling
The described sales techniques are increasingly used by online stores offering both goods and services. An excellent example is the online website of KFC restaurant, where cross-selling and up-selling are applied to every purchase transaction.
Where are the cross-selling and up-selling techniques hidden here? At the very beginning of your order, KFC offers to add another favorite product in addition to the sandwich of your choice. You can choose between additional chicken, fries or Pepsi. As a result, the value of your shopping cart increases by at least one shopping item. The result? Sales increase without having to acquire a new customer.
The up-selling technique is used just as transparently. You can enlarge the proposed set and customize it to your individual needs. This technique is also used to propose the creation of your own "bucket", which can contain individually selected goods.
The possibilities for using cross-selling and up-selling are virtually endless. Suppose you want to buy shoes from Zalando's online store. When you choose a model, you are immediately offered to buy matching clothing. This is a real convenience for customers who are interested in changing their closet or matching clothing to the selected model of shoes. Want to buy a jacket? You'll immediately get a suggestion for a matching hat, pants and shoes.
Up-selling in Zalando? Instead of the selected jacket, you will get an offer for other models, environmentally friendly.
In both cases, the risk of failure of the sales process is low, and in the case of cross-selling, basically none. This is due to the fact that in this case the customer can decide on an additional product after the purchase decision has already been made. In up-selling, the risk is only that the customer has to decide on a basic or premium good when making a purchase decision.
Cross- and up-selling module on PrestaShop engine
Anupsell and cross-sellmodule can be implemented in online stores based on the PrestaShop engine . This will facilitate the creation of effective promotions that will increase the value of your shopping cart. The wide flexibility that allows you to create promotions based on bundles, free products, or extended warranties makes the module applicable to any eCommerce. The advantage of the software is the creation of automated processes, so that the increase in the variety of promotions and the value of completed purchases will not entail a proportionally greater amount of work devoted to handling promotions.
The PrestaShop Upsell & Cross-sell module created by our developers guarantees the possibility of infinite configurations based on any rules for selecting, displaying and discounting products. Both sales techniques allow you to present the customer with an offer extended by products available at an attractive price. In addition to a functional module, we guarantee 3 months of free technical support. We encourage you to familiarize yourself with the full functionality of the PrestaShop Upsell&Cross-sell module.