Post by account_disabled on Mar 10, 2024 5:06:39 GMT -5
Companies have a 60% to 70% chance of selling to existing customers versus a 5% to 20% chance of selling to new customers. The other relevant fact to know is that, statistically, existing customers tend to spend 67% more than new customers. The data comes from Paul Farris' book, Marketing Metrics, and shows how cross-selling and upselling strategies are vitally important for your team to increase revenue in the most efficient way possible. Cross-selling and upselling help strengthen customer relationships, see more revenue opportunities, and drive sales. At the same time, you make customers feel that the company continues to care for their needs by offering relevant and useful products and services, encouraging loyalty. The importance of cross-selling and upselling Once you have already gained the customer's trust and they have approved your product or service, it will be much easier to offer another complementary product to obtain better results. Upselling and cross-selling opportunities can be as beneficial for the customer as they are for your company.
An Adobe study looked at the conversion rates of repeat customers. They identified that a customer who has purchased from their store twice before is nine times more likely to convert than someone who is purchasing for the first time. RJ Metrics research attested to something similar. The data shows that of your loyal customers, your top 10% spend 3x more per order than the bottom 90% of your business and that your most Brazil Phone Number Data loyal 1% of spenders spend 5x more than your remaining 99%. Through upselling and cross-selling it is possible to increase the average value per transaction, a key sales metric that relates to the revenue that the company is obtaining in relation to how many people buy. But it is important to highlight that the benefits of upselling and cross-selling are not just for companies. By offering customers more options or relevant add-ons, they don't have to look to the competition and risk having a bad experience. This way, you give him convenience. Both tactics are advantageous and can help your business generate more revenue and grow.
To use these strategies correctly in your business, you need to understand the differences between the two, how they add value to the customer and tips for effective cross-selling and upselling. Check it out below! What is upselling? Upselling means getting the customer to buy a more expensive version of something they have already purchased or decided to purchase. Therefore, it would be an upsell to offer premium versions, a product made with better materials or services that last longer. For example, when a customer chooses a room at a guesthouse, you could suggest upgrading to a better apartment. Typically, upselling, when possible, should be seen as the first option to be offered, as it is easier to get the customer to identify the value in a better version of something they already know they want. What is cross-selling? Cross-selling aims to identify and offer products that satisfy additional and complementary needs that are not met by the original item. Cross-selling is valuable in cases where upselling is not an option, as well as when the additional product or service has a clear and obvious relationship to the original purchase and provides an obviously related benefit.
An Adobe study looked at the conversion rates of repeat customers. They identified that a customer who has purchased from their store twice before is nine times more likely to convert than someone who is purchasing for the first time. RJ Metrics research attested to something similar. The data shows that of your loyal customers, your top 10% spend 3x more per order than the bottom 90% of your business and that your most Brazil Phone Number Data loyal 1% of spenders spend 5x more than your remaining 99%. Through upselling and cross-selling it is possible to increase the average value per transaction, a key sales metric that relates to the revenue that the company is obtaining in relation to how many people buy. But it is important to highlight that the benefits of upselling and cross-selling are not just for companies. By offering customers more options or relevant add-ons, they don't have to look to the competition and risk having a bad experience. This way, you give him convenience. Both tactics are advantageous and can help your business generate more revenue and grow.
To use these strategies correctly in your business, you need to understand the differences between the two, how they add value to the customer and tips for effective cross-selling and upselling. Check it out below! What is upselling? Upselling means getting the customer to buy a more expensive version of something they have already purchased or decided to purchase. Therefore, it would be an upsell to offer premium versions, a product made with better materials or services that last longer. For example, when a customer chooses a room at a guesthouse, you could suggest upgrading to a better apartment. Typically, upselling, when possible, should be seen as the first option to be offered, as it is easier to get the customer to identify the value in a better version of something they already know they want. What is cross-selling? Cross-selling aims to identify and offer products that satisfy additional and complementary needs that are not met by the original item. Cross-selling is valuable in cases where upselling is not an option, as well as when the additional product or service has a clear and obvious relationship to the original purchase and provides an obviously related benefit.