It’s a shocking fact that it takes 6-7 times more expensive to acquire a new customer than to keep an existing one. You might have spent a huge cost on advertising to attract visitors, if you just let them buy 1 and go, you’re leaving a lot of money on the table.
So, how do you make more money?
Generally the 2 most important factors that affect revenue of an online store are traffic and conversion rate. Let’s take a look at a small example:
- your monthly traffic is 10,000 visitors/ month
- your conversion rate is 2%
In order to double your revenue, you will either have to buy more ads to boost traffic to 20,000 visitors/ month, or optimize your website to increase conversion rate to 4%. Although that does work, yet it’s hard. Not to mention that it requires a lot of your work and time.
There is also a more cost effective way… it’s to increase your average revenue per customer, simply by upselling and cross-selling your products. It has been the key to profit generation for most online stores, especially to the big player Amazon.
How to boost your sales each day with up-sell and cross-sell?
Just by these 2 simple yet powerful techniques, you can easily generate an extra of a few thousand dollars every month. Don’t you want to?
Up-sell and Cross-sell your products could bring you a lot of extra revenue
As you can see from the above dashboard, one of our customers, have made more than $267,000 in extra revenue with just Boost Sales app. Let’s imagine how much he’s made for the whole store!
Here are some of the lessons that we’ve learnt from how he’s been using Boost Sales so effectively to increase revenue:
- Choose related products: Showcasing related products helps to remind people of other things they were not actively looking for but still might need or want. You, however, may lose the sale if offering customers irrelevant products as they will think you are attempting to dig money from their pocket.
- Pricing rule: Remember the rule of “25” that: the value of an add-on sale should not exceed the overall order by more than 25%. For example, if the original order is $100, you should be cautious in your attempts to exceed that order by $25. Despite the fact that people are motivated to buy, they still have a mental limit as to the amount they will dispense. For whatever reason, that figure should rarely exceed 25%.
- The power of copywriting: From the customer’s point of view, 90% of a sale is emotional. Active verbs such as “gain,” “improve,” and “save,” along with words that express benefits, such as “new,” “free,” and “proven” are likely to appeal to the customer’s emotions.
Be natural, yet make it too “sexy” to resist
Remember to suggest “one more thing” that would help your customer get the most value from their purchase. After a product has been added to cart, you as a store expert are then in an ideal position to suggest what would go well with that purchase to increase the customer’s enjoyment of using it. Be natural, otherwise, your customers will feel as though you’re treating them as the next sale rather than as human beings.
Besides, let’s make it irresistible so that customers can’t turn down your offers.
For example, you can mix & match some items on your store to complete an outfit look. Not only receiving a great suggestion, but your customers will also have more motivation to purchase the whole bundle.
But you absolutely should use Automated Upselling
The problem with manually creating your upsell offers is that it’s impossible to scale & it will never adapt to your customer’s browsing behavior.
“Switching from manually configured recommendations to Auto Recommendations increased upsell revenues by 30%,” says Meacham [Analytics & Testing Manager of headphone retailer SkullCandy] “Plus, it saves us time. Optimizing recommendations used to take about 10 hours a week. Now it takes just half an hour, which frees up staff to do other important work.”
Therefore, we’ve come up with Smart Recommendation solution for Boost Sales app, to help you increase revenue and save valuable time.
After activating this feature, Boost Sales will use the fancy big data algorithm from Amazon to automatically track customer browsing history, then our app will analyze the collected data to understand what they’re interested in, which products catch their interest,…
By understanding your customers deeply, Boost Sales app will automatically pick appropriate products to recommend after customers click “add to cart” button. It will increase the chance of selling more relevant products to your customers and boost your sales then. Everything works automatically so you don’t even have to lift a finger!
With the costs of acquiring a new customer and the possibility of boosting your store’s revenue, recommend the right products to up-sell / cross-sell between items should be a priority. It is important in both maximizing your Average Order Value and Customer Lifetime Value.
Have you ever tried to up-sell or cross-sell products to your purchasers? If so, what was your experience? Please share your experience in the comments below.