How to Personalize Your Cross-Selling and Upselling Strategy through marketing automation?
In the marketing world, various moments serve well to push the envelope for your product/services and increase revenue and loyalty. But marketers, at large, cope with creating such experiences. The first reason for this is the lack of a consolidated view of the customer journey.
Data about the customers, these days, is spread across multiple channels. It reaches marketers in a dislocated form that is adequate for understanding the aggregated behaviour and preferences of users but doesn’t help much in identifying users at an individual level.
However, all these different sets of data, when combined, brings you closer to your users and address some of the critical questions like:
- What are your user’s interests?
- What are their most pressing challenges?
- What do they like to do the most?
- What’s the scope of their problems?
- How do they want to spend?
- Are they looking for X with Y?
- Which channel would they prefer to communicate?
- Which payment method do they want to use the most?
- Which categories of products do they seem more interested in?
- What are the pages they visit the most?
Answering some of these questions can put you well on the path to identify the likelihood of your customer to engage with your business more.
But first, what’s the difference between both?
Cross-selling is about selling complementary or supporting products along with the original purchase.
Upselling is about convincing your customer to purchase an additional or more expensive product.
How to Personalize Upselling and Cross-Selling?
Cross-selling and upselling, necessarily, is serving the consumer to make the best choice. It could be encouraging them to get more value out of their capital, be more fertile than before, or increase their profits. Personalization lets you listen to the consumer and talk to them in a way they want. Here’re a couple of things you need to ensure while you implement your strategy:
- Know your customers and their needs: A good knowledge of what your customers want or need is essential to the success of your cross-selling and upselling tactics. A good starting point, in this case, would be to comprehend how your consumers operate your website, i.e. visits to specific pages, time duration on visited pages, etc. Another way to get this information is to study your prospect’s conversation with your sales or customer support team. Doing so will tell which features are they most interested in and whether they have any additional requests. Moreover, customers, these days, are more than happy to share there personal data for better deals and offers.
- Build a response model: Instead of using a linear approach for recommending complementary products, prepare your systems to react dynamically as the prospect moves through the checkout journey. This response model needs to segment customers on the select variables deciding their propensity to respond to your cross-sell/upsell strategy.
- Build a repository of relevant recommendations: Your support pool is not good enough if it doesn’t have an ample numbers of options for the customer. The recommendations should be well-tuned to the effect of addressing well what the customer would want next and coming with just the right number of recommendations – not too less, neither overwhelming. Giving too many options may put the customer in the decision paralysis, and having too few will restrict choices.
- Make it financially reasonable: It’s a thumb rule that your upsells should not increase the cost by more than 25%. And, cross-sells should be at least 60% cheaper than the product added to the cart. Tune your cross-selling and upselling engines to these rules for a better success rate.
- Decide the contact strategy: Your prospects and customers, in all likelihood, will have a preferred method of communication. This needs to be accounted for when you are trying to cross-sell at a later stage. Ensure you’re reaching them on the right channel to make them aware of the offers and promotions. You can also look at what channel works better for a particular cohort in terms of response, goal completion and use that for your cross-selling communication.
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