Cross sell and up sell techniques in e-commerce

Cross Selling / Up Selling experience in e-commerce July 2007 – Daniel Tartaro (daniel.tartaro@gmail.com)

Index 1- Definitions 2 - About Cross Selling and Up Selling (CS / US) – Who, What, When/Where and How? 2.1 – Who 2.2 - What 2.3 – When/Where 2.4 - How 3 - Key Success Factors

Cross Selling Up Selling Cross-selling is the strategy of selling other products to a customer who has already purchased (or signaled their intention to purchase) a product from the vendor. Up-selling is a sales technique where a salesman attempts to have the consumer purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale.
Air Ticket + Car Rentals
Camera + case
Jacket + shirt
Air Ticket + class upgrade
Notebook + memory upgrade
Simple car > fancy car
Term Definition* Examples *Source Wikipedia Back to Index Definitions

EXAMPLE – Amazon.com > Product Detail

EXAMPLE – Amazon.com > Product Detail Product details Cross Selling Up Selling (expensive models)

Cross Selling Back to Index Up Selling Who?
Identify the customer or a cluster for a better approach.
Present relevant offers based on his buying history and/or social-demographics characteristics.
When, Where?
Identify the best moment during the buying flow to offer another product or service.
Respect the users main objective.
How?
Identify the best position on the screen
Identify the best model (text based, txt+img, advertising, radiobuttons, checkboxes, etc)
>> Based on Logics : “I’m buying new shoes, I’ll probably need a new belt!” >> Based on other customer’s behavior : “Customers who bought the Mariah Carey DVD, also bought Christina Aguilera DVD” What?
Identify the products or services which best fit the buying situation.
Constantly analyze buying behavior in order to identify new trends (predictive models)

Back to Index The challenge of the one-to-one marketing Who? 010101010101010101010101 Users Website Data Intelligence Customization *Source: B2B Marketing trends, available at http://www.b2bmarketingtrends.com/abstract.asp?id=198&groupid=10 RESPECT SECURITY and PRIVACY policies!! WHO > What > When > How
Search
Click
Navigate
Buy
Store actions, individually and collectively
Convert raw data into Business Intelligence
Provide RELEVANT offers
Customization
Drives online conversion rates
Delivers higher profits per transaction
Increases customer satisfaction and loyalty
Why??* one-to-one relationship

EXAMPLE – Amazon.com > Home Page Back to Index WHO > What > When > How

EXAMPLE – Amazon.com > Home Page Customized home page based on buying and behavioral history Back to Index WHO > What > When > How

EXAMPLE – Amazon.com > email mkt WHO > What > When > How

EXAMPLE – Amazon.com > email mkt Customized email marketing based on buying history WHO > What > When > How

Finding the best offers to increase share of wallet What? Back to Index Type of products groupings / services*: *Source: ClickZ – Avalable at: http://www.clickz.com/showPage.html?page=3610171 Who > WHAT > When > How Competing
Products the user could buy instead of the current product
E.g. Sony DVD player vs. Pioneer
Complementary
Products which are intended to be sold with the current product
E.g. DVD Player + Speaker/Receiver system
Family
Usually from the same manufacturer and part of the same product line
E.g. Furniture set (chairs, couch, table)
Accessory
Can’t be used on their own, they are accessories to the main product, bold sold separately.
E.g. Watch batteries, warrantee
It’s not a good idea to lump all the groupings under the same “related products” umbrella.
Complex products customization must be carefully analyzed, sometimes it can compromise the purchase progress.
Offering competing products can sometimes create an undesirable “looping navigation”, compromising the conversion rate.
It is important to give more weight to family products than complementary because they’re meant to go with the current product.
Observations

EXAMPLE – JCPenney > Product Detail Who > WHAT > When > How

EXAMPLE – JCPenney > Product Detail Family product offering, enhancing the shopping experience. Who > WHAT > When > How

Suggestions for a better CS/US approach
Car rental
Hotel reservation
Tickets
Shuttle Service
Vacation packets
Cruises
Car rental - $$
Hotel reservation - $$$
Tickets - $$
Shuttle Service - $
A/B Test the best step
A/B Test the best position
A/B Test the best format
Text + Image
Text only
Advertising
When/Where? Back to Index Put the right product, in the right place in the right moment. Maximize “share of wallet”, combining different products and different profit margins. It’s imperative to have an integrated and smooth shopping experience!! Who > What > WHEN > How 1 st Determine the Categories 2 nd Determine the Most valuable Categories 3 rd Test all the variables

Back to Index EXAMPLE – L L Bean > Product Detail Who > What > WHEN > How

Related products based on a narrow price range (3 options) EXAMPLE – L L Bean > Product Detail Back to Index Up Sell Who > What > WHEN > How

What specialists say about user behavior and approach models?* How? *Source: NNG – Selling Strategies (2000) | FORRESTER - Flash Shopping Cart Boosts Conversion Rates (2005) – AVAILABLE AT //MOTHERHUGEResearch Reports ** Based on a specific case – tjmaxx.com Back to Index Who > What > When > HOW Fo rre ster
Interesting Flash “single screen” checkout process case
50% more conversions than multi step html**
Single step encourages users to explore the effects of adding items to cart
Quickly calculate the effects of CS/US
Single step gives power to prospects
More control , engaging user in the process
Single step builds trust
Speed responses rates increases the security perception
Make the CS experience as smooth as possible. Less steps, more conversion! NNg
Suggest additional items, but don’t put obstacles before the cash register
Usage of non intrusive offers are recommended
Acceptable approach: additional items on the product page
Bad approach: during the checkout process
Don’t create an extra step into the checkout step
Usage of add-ons checkboxes or radiobuttons are recommended
Key points

Back to Index EXAMPLE – Staples.com > Product Detail Who > What > When > HOW

Up Sell Back to Index EXAMPLE – L L Bean > Product Detail Who > What > When > HOW

Back to Index EXAMPLE – L L Bean > Product Detail Who > What > When > HOW

Good integration between the product and the cross selling offers. Back to Index EXAMPLE – L L Bean > Product Detail Who > What > When > HOW

Key Success Factors for a high conversion rate for Cross Selling experience Create a integrated, smart, easy to use and worthwhile shopping experience Key Factors Details Back to Index Integration Smoothly integrate others products and services on the buying flow, in order to create a consistent shopping experience Intelligence Identify the best offer in the situation (e.g. hotels in the destination city) Exclusive offers Offer good deals to the customers, it will enhance the shopping experience and will create loyalty among the most valuable customers

Cross sell and up sell techniques in e-commerce

by Daniel Tartaro on Nov 18, 2008

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