The old year is drawing to a close – the achievement of the sales targets for the new year is imminent. These goals cannot be achieved without the most valuable asset – the customers. Strategic cross- and up-selling offers additional sales opportunities for sales and aims at a win-win situation between customer and company.
Cross-selling and up-selling have one main goal: More sales. In order to know how sales can be significantly increased with each customer, both terms should be defined first.
Up-selling: Increasing the number of units per customer and order
Many customers are willing to spend more money on a better or additional product or service if it brings them an advantage. This means for you that if you don’t offer them up-sell options, you won’t be spending the maximum revenue or willingness to pay of a customer.
If, for example, a customer puts a TV into his shopping cart for €300 in an online shop, it makes no sense to offer the customer a state-of-the-art TV with many extras. The customer is interested in a cheaper model. In this case it makes sense to offer the customer a comparable TV for 350-400€. According to CollectiveRay, he Artificial Intelligence (AI) can determine which budget the customer can spend on a television set and suggests suitable models to the consumer.
Cross-selling: Further product recommendations
The strategy of offering a customer another product that fits their converging needs is called cross-selling.
If, for example, a customer buys a laptop, it is possible to offer him a matching laptop bag. The buyer often finds the articles under the description “Other customers also bought…”, “This fits…”. With the help of the AI, it is even possible to offer the customer other products that are not connected to the product in the shopping cart, but could still be interesting.
High success and customer loyalty
Up- and cross-selling is of great importance for every company, because the economic success is enormous due to the better exploitation of existing customers. Salespeople need to think carefully about how to sell more items and higher volumes to consumers through compelling offers. By a successful conversion the customers can be bound in the long term to the enterprise.
Achieve sales goals
Increase in sales? Increase in profits? You can achieve both sales targets with cross-selling and up-selling. With cross-selling, the profit margin can be increased because additional items are usually sold at higher prices and the average is thus increased.
The most important prerequisite for this is understanding the customer: What does the customer need? What does he already have? The information collected serves as basic preparation for developing customer-specific forecasts.
AI-based solutions for sales and distribution
Based on the CRM and ERP data, the AI is able to create analyses to predict the probability of successful cross-selling and up-selling. Sales managers can see when it is worth offering the customer an additional product or up-selling option.
At this point, the AI-based Customer Value Prediction developed by Dastani Consulting is able to predict the revenue that can be generated from the entire relationship with a customer. Turnover is broken down by range of products. This makes it possible to tap important up- and cross-selling potentials.
Our Cross-Selling Prediction predicts the purchase probability for each customer for further articles from the product range to which the customer has a high affinity. These articles can be specifically offered to the customer. An optimal product presentation through cross-selling prediction in e-commerce is particularly successful, as it leads to a significant increase in the conversion rate.
Conclusion: Securing sales with predictive analytics
Dastani Consulting helps you to realize important up- and cross-selling potentials with intelligent solutions in the areas of predictive analytics and AI in order to make a significant contribution to securing sales.