Cross-selling and upselling are two bottom the funnel strategies that can increase conversions from your Facebook and Instagram ads.
With these two strategies, you are retargeting your customers or hot visitors. You’re showing them products that they would be interested in purchasing from your ecommerce store.
Cross-selling and upselling can be very helpful and effective, though often confused. While both practices do retarget customers, they use different methods to do so.
If you’re confused about the distinction or need tactics to increase your Facebook ad conversions, keep reading to find out more about cross-selling and upselling.
Cross-selling is the practice of showing your customers ads with products from a different ad set than the one they purchased in. This helps them to be exposed to related products from your ecommerce store. These are products they would also be interested in purchasing resulting in more sales.
Think of cross-selling as a way to help your customers get something that could function with the product they purchase. The cross-sell options should be complementary to their initial purchase.
When cross-selling it’s important to remember that you’re still trying to solve a customer problem. You know what pain points they’re looking to solve based off of previous purchases. With this in mind, consider products from your store that can solve their problem equally or better.
Bundle products that work together
One cross-selling tactic you could use for your ecommerce store is bundling. With bundling, you are promoting multiple products in conjunction with one another.
You can see this in sections of ecommerce stores with the title “Frequently Purchased Together”. These two or three items are typically useful for the customer because they’re needed in order to have the best experience with the item they initially purchased.
Demonstrate the value of another purchase
Another great tactic to use is to demonstrate the value of purchasing another product in conjunction with the product a customer purchased from your ecommerce store.
It’s best to use a sequence of photos or videos as a way to showcase how the product functions in real life. These media formats can also show how life can be better with both products instead of one.
Educate your customer
Educating your customer on the benefits of your product is not just a tactic that works in the middle of the funnel. You can also use this tactic to cross-sell new products.
If your customers aren’t totally sold on a product or a little hesitant to purchase something else, you can show them ads that educate them on the product you’re trying to cross-sell. Be sure to highlight the unique selling points or features of the products from your ecommerce store.
Upselling is a technique in which you use Facebook ads to suggest products from a different product set that has a higher value. This strategy is a great way to earn more profit from your customer.
While the product you suggest might be more expensive, it’s important to make sure it’s not a random product from your ecommerce store, rather something they could benefit from like the product they purchased before.
It’s also important not to upsell too much. This might ruin the relationship with your customer if you suggest something with a price significantly higher than what they’re comfortable purchasing.
Create a sense of urgency
When you’re upselling to your customers create a sense of urgency to encourage them towards purchase. If they see that an exclusive item is only available for a limited time, they’re more likely to purchase.
Use words such as “limited quantities” or “going soon” in your ad copy to convey how urgent it is for your customers to start shopping again.
Provide social proof
Use social proof when you’re upselling your products as a way to verify the value of the more expensive product you’re trying to advertise.
Asking a customer to buy something a little more expensive might be difficult. Show them that others are making the same purchasing decisions from your store and loving the results. This will make them more likely to buy.
Rule of 100
Using the Rule of 100 directs your Facebook advertising on when you should display a percentage or dollar discount. This all depends on if the original price is over or under $100.
For example, if you are advertising a discount on a $13 dollar tote bag, it’s best to use a 10% discount rather than $1.3 off. This is because 10% will be perceived as a greater discount.
Tips to remember when cross-selling and upselling
- Ensure your offers make sense: Customers won’t find any added value in products that aren’t relevant to them, so make sure the product can benefit them
- Incentivize Offers: You’re asking your customers to spend money again, so they may be hesitant. Use discounts or free shipping to sweeten the deal.
- Remind them of your brand’s value: Don’t let your customers forget why they purchased in the first place. Keep your brand top of mind and let them know how you can solve their problem.
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