Personalisation block is responsible for grow in whole CRM system. The idea of grow direction in CRM is simple: make your customer to spend more money in each purchase. You may see it well at pic. 1. Let’s see these important ways of grow improvement.
So, personalization has 3 ways of grow improvement:
- Cross-sell and upsell analysis
- Product & recommendations analysis
- Next-best action analysis
Which of these components generates more profit for the company? I believe, it’s cross-sell and upsell analysis. The reasons are simple:
- this type of analysis doesn’t require a lot of extra-additional data: it’s just require only that data which you have already;
- this tool is simple in use and relevant for each type of business;
- It based on internal data sales, so you don’t need to collect and adopt external data;
- Almost each modern CRM system provides this type of analysis;
- This method is cheap;
- It can be used by small business organizations with low experience and budgets.
Let’s get more familiar with cross-sell and upsell analysis in order to understand it’s main profits.
Cross-sell and upsell
The difference between cross-sell and upsell analysis is in the following:
- A cross-sell is designed to get customers to buy complementary products. For instance, if you’re buying a camera, then you can buy a case for it, maybe another lens, a memory card, or a book about how to use it.
- An upsell, on the other hand, is designed to get a customer to spend more money on the same thing. For example, if you’re purchasing a PC, you might want to buy extra storage space on the hard drive or a more advanced graphics card. You’re still purchasing the main item in question, just with augmented features.
Thoughtful execution of cross-selling and upselling not only leads to an increase in revenue for your ecommerce store, but it enhances the relationshipyou havewith customers when you suggest items or upgrades they enjoy and receive a lot of value from.
But this tactics have to be relevant for customer. Otherwise, he or she wouldn’t buy your products and services. So you have to keep in touch this tactics with three rules:
- Does the product or service complement the offer that your customer is buying?
Upsells and cross-sells are work only if they’re relevant to the original purchase. When you’re upselling or cross-selling an item, see to it that it’s
- a product that goes perfectly with their purchase.
- a better option of what they’re buying
- Will this product really benefit or valuable to them?
Sometimes, an add-on item may complement another product, but it won’t benefit the customer. For example, while a certain type of lens may go with that camera your customer just bought, it wouldn’t be a good cross-sell if they don’t have a need for it.
- Are they open to spending more?
If the client has shown it clear that he is bounded with budget, then respect their wishes and don’t try to sell them anything else. You might send them packing if you insist on upselling or cross-selling.
I believe that cross-sell and upsell analysis is one of the most important and powerful tools in achieving revenue’s grow. Like Pareto’s rule says: 20% of work gives 80% of results, this tool allows the company to increase sales just by small and effective step. Do you agree with it or not?