5 Psychological Ways to Increase Upsells and Cross-Sells.
Statistics prove that existing customers tend to spend more than new ones.
- The probability of selling to an existing customer is 60% to 70%.
- The probability of getting a prospective customer to buy from you for the first time is only 5% to 20%.
- So, you’re at least 40% more likely to convince an existing customer to buy upsells and cross-sells from you than you are to convert a prospective customer. (Neil Patel)
As a new and upcoming eCommerce store, you can use upsells and cross-sells to convince consumers to spend more. Here are 5 of the most effective ways to encourage current customers as well as new buyers to purchase more during each visit.
1. Add More Value to Customer Experience
Upselling is more about building deeper relationships with your customers by delivering greater value for their money. Bundling merchandise with items that complement each other is an effective way to upsell. This will provide customers with compound value while encouraging them to spend. What will motivate your customer to buy more? If you understand what will motivate consumers to buy certain products, you can upsell and cross-sell more effectively. Find out by using your email lists and surveys.
2. Consumers Want Convenience
Simplify the shopping experience for customers, and they will be happy to pay a premium for the added simplicity and convenience. It will help to eliminate the need for customers to fill out menial details every time they log in to order something. Time is a limited commodity, and shoppers are looking for eCommerce stores that add convenience to their shopping experience. If it takes too long or there are too many steps to make a purchase on your eCommerce Store, your customers are likely to shop elsewhere.
Offering auto-renew subscriptions for customers who reorder the same items regularly will help remove their friction of having to follow the same process every time. Subscription eCommerce is a great way to increase sales and at the same time offer convenience.
3. Everyone Loves Incentives
Shoppers are always looking for exciting offers, and free shipping is a great incentive and works as a magnet in attracting shoppers to make a purchase. eCommerce stores looking to increase sales can take advantage of free shipping (or fast shipping) and keep a minimum order value for free shipping.
Or you may want to offer special discounts to customers spending above a specified order value. Deals and discounts are an instant hit with shoppers and work as great upsell and cross-sell techniques to convince them to hit the purchase button.
Offering sample products and freebies is a good sales tactic that encourages most shoppers to reciprocate by enrolling for your email list or even making a purchase. According to behavioral economists, people tend to reciprocate kind gestures and feel a strong urge to do something back for them.
Many online retailers offer free samples of its products and automatically enroll potential customers that fall for its bait. While this tactic may frustrate some customers, some others feel the obligation to enroll for the membership. Reciprocation has its Pros and Cons of course.
5. Scarcity and a Sense of Urgency
Limited quantity goods tend to create a sense of urgency in shoppers, who are more inclined to buying scarce commodities. It is a natural human instinct to see goods that are scarce as more valuable than those in stock. eCommerce stores can use scarcity and urgency as a tactic to upsell and cross-sell goods and boost sales. Offer exciting deals and discounts that entice customers and create a sense of urgency. Limited period offers tend to attract customers more.
Additionally, offering an exclusive discount can be used as a ploy to reel customers in and prevent shopping cart abandonment, encouraging them to complete the purchase in a timely manner.
Related: Why Do Your Customers Buy From You?
With eCommerce booming and many new online retailers coming aboard, you need to use every advantage you can get in order to attract more customers, More customers, more sales, and more profits. These upsell and cross-sell techniques can help retailers directly boost the bottom line!
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