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Making an upsell or cross-sell offer

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The first type of monetization offer we discuss is the immediate upsell, and it’s one you’re probably already familiar with even if you’ve never heard the term. An example of the immediate upsell is the famous “Do you want fries with that?” offer made at McDonald’s. Upsells offer customers more of what they already bought. The purchase they are currently making and the upsell should lead the customer to the same desired end result. In the McDonald’s example, adding fries to your order gets you a bigger meal. The cross-sell offer, on the other hand, makes an offer related to the first purchase. For example, a clothing retailer might offer dress shoes to a man who just purchased a suit.

Amazon.com (and virtually every other successful online retailer) uses upsell and cross-sell offers to increase the number of items people purchase. Amazon’s “Frequently Bought Together” and “Customers Who Bought This Item Also Bought” sections contain immediate upsell and cross-sell offers to help ensure the sale and possibly increase the basket size. For example, after we select a book for $17.98, Amazon suggests other products that we may want to make with this purchase, as shown in Figure 3-8. If we accepted all the suggested upsells, the amount of our purchase would increase from $17.98 to $44.96.

In Figure 3-8, the item being searched for is Harry Potter and the Cursed Child, and Amazon offers some related Harry Potter books that would serve as an upsell and increase the basket size. But Amazon also offers cross-sells in the form of other fantasy books that may appeal to a fan of Harry Potter because they are of the same genre.


Source: https://www.amazon.com

FIGURE 3-8: Amazon expertly uses upsells and cross-sells to increase the basket size of its customer and get the sale.

Because the cross-sell may not be as relevant to the first purchase, a cross-sell can feel like it’s coming out of left field, which can be jarring to and unwanted by the customer. That’s why you have to be careful with cross-sells, or you risk annoying your customers. Imagine buying a Mac computer and having Apple ask before you’ve even left the store whether you want to buy an iPhone or an iPad. That said, if the cross-sell truly complements the initial purchase, your customers will welcome the offer, and you’ll welcome the additional revenue.

Digital Marketing For Dummies

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