You may have heard of upselling, but what about down-selling? Social selling? Bundling? All these methods are commonly used to help businesses increase revenue, AOV, and CLV. Read on for a brief explanation of important selling capabilities.
Many customers look to price as an indication of quality. Upselling encourages consumers to spend a bit more than they initially intended by recommending a product or service that is higher in price but more enticing, i.e. has more bells and whistles. To further encourage a larger purchase, offer free shipping over a certain threshold; after all, 40% of customers are willing to buy more items if they qualify for free shipping.
Example: A customer is looking for a nice pair of warm winter boots. They land on a page with a sturdy, plain pair of black boots. You could upsell this purchase by showing a product offering of a slightly costlier pair of boots that are more fashionable and waterproof.
Cross-selling involves suggesting a complementary product or service to the product a consumer is investigating. It allows you to offer a product that the consumer may have already been searching for or may not have realized they needed. Not only are you able to increase sales, but the consumer will also appreciate the ease and availability of complementary products. Be sure not to pick items that increase the total order cost by more than 25%. Too high of an additional cost may cause the consumer to abandon the purchase altogether.
Example: A customer is looking for a nice pair of warm winter boots. Cross-sell by suggesting a pair of svelte gloves, a hat, or maybe even a scarf. Chances are if a customer is looking for a new pair of boots, their other winter gear also needs replacing.
While upselling and cross-selling are quite popular, down-selling is a less well-known tactic. It involves offering a product or service that is less expensive than the one the consumer was viewing. Though this seems counterproductive, down-selling offers a secondary option for consumers who would have otherwise abandoned their cart. Keep in mind that when you down-sell, your intent should be to upsell in the future.
Example: A customer is looking for a nice pair of warm winter boots. They land on a page with a sturdy, plain pair of black boots but they are a little out of their price range. They keep coming back to the same pair of boots after looking at cheaper options and are looking for a similar pair at a lower price. Down-sell by offering a similar (potentially more basic) pair of boots at a lower price. This allows you to keep the customer on your site rather than lose them to another vendor with lower prices.
Like cross-selling, bundle selling creates a “bundle” of complementary products and sells them at a cost lower than their individual combined prices. Bundling offers consumers a discount when purchasing certain goods, which motivates them to “buy more and get more.” Bundling allows you to increase your order value and encourages customers to test related products that may prove beneficial to them.
Example: A customer is looking for a nice pair of warm winter boots. They land on a page with a sturdy, plain pair of black boots. They notice that there is a product offering that offers a similar pair of boots but also includes a hat and gloves. Seeing that the price is only a few dollars more, the customer places an order. The customer feels that they received a great deal and you not only got rid of stock that might have been stagnant, but you provided extra value to your customer.
Social selling has two different sides: the buyer’s and the seller’s. From the seller’s perspective, social selling involves crafting a social media presence and using that influence to drive sales. Consumers love a company with personality and social media allows you to present a "face” for your customers to interact with on a more personal level. Listen to your customers and address their concerns and suggestions. Once you understand your audience’s interests, curate content that speaks to them.
On the buyer’s side, social selling involves a bit of bragging. If you include links to share products at both the start and the end of a buyer’s journey, many avid social media users will take that opportunity to share what they’re buying, particularly for large purchases. It will also encourage them to recommend you to friends and followers, leading traffic to your site.
Example: A customer is looking for a nice pair of warm winter boots.
Seller’s Role: Potential customers look through Facebook and notice your page as an ad or notice a friend recently “liked” it, so they check out your page. The page and content make a great first impression so they click the link to your website.
Buyer’s Role: Potential customers land on a page with a sturdy, plain pair of black boots and proceed to buy them. Seeing the link to share on Facebook, they click it and post “finally replaced those decades old combat boots (RIP) with these beauties.”
Now, what do you do with your new found selling knowledge? I urge you to go forth and conquer sell! Feel free to contact us if you have questions about your site's capabilities.
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