Do you always think about how to increase the profits of your online store? Did you know that you can do this in simple steps? In today’s article, we will guide you on how to increase the value of the transaction in your store by learning about the concepts of Crossell and Upsell.
Through this article, we will provide a simplified explanation of how to increase the value of the transaction in the WooCommerce store , which in turn will contribute to increasing the profits and returns of the store as a whole.
We will first provide you with an explanation of the terms Cross Sell and Upsell in a simple and easy way, and we will accompany the explanation with illustrative examples. Then we will review the steps necessary to apply the aforementioned techniques to increase the value of the transaction in your store.
What is meant by increasing the transaction value?
Increasing the value of the deal means increasing the financial value obtained from the sale more than it was originally. For example, if you wanted to sell a jacket to a customer at a price of $70 and then – through several techniques – you increased the value of the deal between you and the customer so that the value of his purchase was $85, then you Thus, you have succeeded in increasing the value of the deal.
One of the most important techniques and means that help you do this is the alternative selling technique, or what is known as upselling , and the cross-selling technique .
What is Upsell?
Upsell is a technique used to increase the value of the transaction, by persuading the customer to buy an alternative product that is more expensive than the product he chose to buy, or to buy a product that generates a greater profit percentage for the store than the profit value of the basic product that the customer chose. Thus, a higher percentage of profits is achieved than it was previously.
For example, if a customer wants to buy an HP computer and you, through one of the tools, convince him to buy an Apple computer, because it offers better and superior features than the HP computer, by displaying the picture, price, and description of the alternative product. If the customer actually chooses to buy the Apple computer that brings you more profit than HP, you have done so by increasing the value of the deal through the alternative selling technique.
Major stores adopt this method to increase profits from their sales, and even you can apply this method to yourself to increase profits. To learn how to do this in a practical way, follow the article until the end..
What is cross selling?
Cross selling is a selling method or technique that also aims to increase the value of the transaction , and in doing so it has something in common with the alternative selling technique (Upsell) that we explained in the previous paragraph. But it differs from it in that it does not use the method of changing the customer’s behavior to buy a product that brings the store higher profits than others, but rather it adopts another method.
This method consists of convincing the customer to buy products that are complementary to the product he wants to buy. In continuation of the previous example that we mentioned, after the customer has purchased an Apple laptop and you have succeeded in achieving the alternative sale, you will now suggest to the customer that he buy a bag for the computer that he purchased, and you will also recommend that he buy the rest of the equipment. Supplementary items such as a mouse, computer table, or other equipment.
Steps to increase the value of the transaction through Cross Sell and Upsell
We previously explained in a previous article how to display related products to the customer , which enables you to choose the products that are purchased with the current product, whether they are complementary or alternative products, and display them to the customer. You can also control the display of the price, description, thumbnail, and other details of these products.
In this article, we will explain another method that enables you to do this without any additions to increase profit in the store via Upsell and Cross Sell, and we will support the explanation with detailed steps..
Go to the product to which you want to apply one of the previous techniques from within your WordPress store control panel, then follow the following steps:
1. Browse the Products page from the side panel of your WooCommerce store, and edit the product you want.
2. Scroll down until you reach the Product Data option, then click on the ( Related Products ) option. After moving to this option and opening the Related Products, a list will appear that includes two important options: ( Recommended Products, Marketing Products )
Recommended products
The recommended products field is considered the field designated for alternative selling products (Upsell). Here you must fill an alternative product to the product you edited so that it achieves a higher profit rate than the current product that the customer may choose.
For example, place a product (laptop) whose price is $56 and another product called (a newer laptop) whose price is $70. In order to apply the alternative selling technique, enter the products again and edit the product (laptop) and then go to the place shown in the previous image, and place a product ( Newer laptop) is among the recommended products.
Of course, you must convince the customer to buy the product and advise him that it is better for him and serves him more – and it certainly is – but what the customer does not know is that this product will bring you a higher profit rate than the product he originally wanted to buy. Even if he knew that, in any case he would be happy that you advised him to do what is best for him.
Marketing products
Marketing products are considered the option for the cross-sell technique . Here, you have to package products that complement the basic product chosen by the customer with the aim of increasing the value of the deal, achieving the highest possible percentage of profits, and the greatest desired benefit for the customer who buys from you.
In continuation of the previous example, after the customer chose to buy (a newer laptop) instead of (a laptop) and we increased the value of the transaction by $14, you can now pack a product (a laptop bag) and (a mouse), which are complementary products to both (a laptop and a newer laptop). In case If the customer chooses to buy it, it will increase the value of the deal from $70 to $82 and achieve an increase in the deal of $12.
This is because the price of the product mouse is $2 and the price of the product laptop bag is $10. Thus, we notice how the value of the transaction increased from $56 to $82 through the application of cross-selling and upsell techniques.
Through the previous two methods, you will be able to increase your store’s profits and develop it further, and you will also gain the trust of customers because you recommend to them what is most beneficial to them. This is one of the most important factors that contribute to improving your store and improving its profitability.
Important tips for using Cross Sell and Upsell techniques
1. Make the price of your product reasonable
In order to ensure the success of the previous steps, you must set a reasonable price that the customer will be convinced of and will make him feel that his benefit from this product that you have proposed to him is greater than the price difference that he will pay you.
2. Leave a safe space for the client
Do not use tools and add-ons that prevent the customer from closing the list of recommended products and marketing products, because this provokes the customer, which may make him leave your store without buying anything and without coming back again.
3. Make sure you’re showing a relevant product
When you link your products to be suggested to the customer, make sure that they are actually related to the main product. It does not make sense for the customer to come to buy a display screen and then suggest that he buy pants with it, as this will reflect negatively on your store.
We also advise you to read: Increase your online store sales through 15 technical and marketing recommendations
Conclusion
During this article, we took an introductory tour through which we learned about two important concepts for increasing the value of the transaction in e-commerce. We also reviewed techniques that increase the profits of your online store, namely the alternative selling technique (Upsell) and the cross-sell technique.
We adopted the method of detailed explanation of how to apply these two techniques with the practical steps necessary to increase the value of the deal. In the end, we learned important tips that you should pay attention to so that the results of use do not reflect negatively on you. If you have any additional questions about increasing the value of the deal that you would like to share with us, we welcome that in the comments section.
