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Difference Between Cross-Selling and Upselling – Why You Should Set It Up Right Now!

I think it’s quite an obvious thought but I will bring it up anyway: It’s much easier to increase the average order value of an existing customer than acquire a new one.

Today I would like to talk about 2 ways of increasing this AOV: Cross-selling and upselling!

Let’s start with a definition of both of them and then talk about the best strategies.

Cross-Selling

Cross-selling is selling an item from one product set to your existing customer who already purchased an item from another product set. For example, you’ve got a clothing shop. You’ve got a list of customers who recently purchased jeans from your store. They probably have closed the need of purchasing jeans for quite a while, but it doesn’t mean they’re done shopping for this period. You can always suggest them to buy shirts or shoes or bags. This is called cross-selling. You increase the AOV of the customer buy suggesting additional products.

Upselling

Upselling is selling a higher ticket product from the same product set. For example, the customer wants to buy a specific model of jeans, but you suggest him to buy a name-brand pair of jeans instead which are twice more expensive. This would be an upsell offer.

Now when we understand the difference between these terms, let’s discuss what’s the best ways to use both of them. There can be two options: paid traffic and email marketing.

Related Post: Are Your Ads Actually Scaleable?

Paid Traffic

In order to create such paid traffic campaigns you will need a catalog. When you’re done creating a catalog with different product sets, you can create a Catalog Sales campaign which means choosing Catalog Sales as an objective. The ad set level is where you can choose if you want to cross-sell or upsell.

My recommendation is starting by cross-selling products for those customers who have purchased recently but have received your product already. So the best audience would be purchasers for the last 30 days excluding the average day period of your delivery. And remember to cross-sell a product from a different product set.

Email Marketing

Another option is email marketing: this is obviously much cheaper than launching FB campaigns. Once several weeks have passed after the purchase, you can send out an email offering a product from another product set. Adding a discount code for “valued customers” always helps with convincing for a new order.

Related Post: 6 Reasons Why Your Email Marketing is Under Performing

The best place for upselling offers is directly on your website. But you need to pick a relevant upsell for a specific product. Always offer it on the product page or on the ATC page. You can create a pop-up if it’s any type of a guarantee or you can offer bundles in the cart. There is also an option to create an upsell campaign for those people who viewed your product but didn’t purchase yet. In this case it’s better to promote bundles or higher ticket products from the same product set. All these hacks will help you increase your average order value!

And as I said at the beginning it is much cheaper to save a loyal customer than acquire a new one.

If you’re spending over $500 a day and also want to scale your brand

Book a call below:

https://dimniko.com/msp-apply

Thanks!
Maryana from DimNiko 🙂

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