It’s almost that time of year again… the weather is cooling, Q4 is speeding into view, and businesses are preparing for the holiday shopping blitz. In fact, it may be even crazier this year given that COVID-19 has limited shopper options and will be driving more customers to explore online rather than in person.
As you prepare for the Black Friday and Cyber Monday (BFCM) marathon, your business will need a strategy that drives revenue and results for your brand. Cross-selling with new products has become a proven strategy for driving revenue and increasing the average order value. Here’s the best way to execute this strategy on Shopify.
The Increase in Online Shopping for 2020
This steep increase in online shopping continues the trend of shoppers turning to online options that began years ago, but is getting a major boost in 2020. Consumers are gravitating toward online shopping in 2020 more than ever before.
According to the National Retail Foundation, Black Friday online sales in 2019 (pre-pandemic) surpassed brick and mortar sales, and have generally been trending upwards since 2016. The data shows that if you’re an online retailer, or working in e-commerce, there’s a good chance you’ll be working hard and driving revenue this holiday season.
However, the increase in holiday online shopping doesn’t necessarily mean an increase in sales for you. Relying on the same tactics as everyone else will simply not yield the same results that it did in years past.
So, what do you do if you want to offer your customers a competitive shopping experience but don’t want to jeopardize site functionality this close to the big day? The answer lies in turnkey solutions that can offer high impact results at an affordable cost, while also saving you setup time and effort.
The Essentials for Running Effective Promotions During Black Friday
Offer discounts that surpass your everyday promotions
Don’t offer them the same 5-10% that you offer off the first purchase on your site year round. Instead, you’ll need to dig deep into your discounts and offer something that really captures their attention and urges them forward to buy during Black Friday. You don’t want them to wonder if they can get the same kind of deals in August or March. Instead, make it good enough that they know this is a limited time promotion and only available for the holiday season.
15-20% for a holiday promotion is fairly standard, but check within your industry to see what an ideal promotional discount would be. Promotional discounts are getting bigger by the year across a number of consumer categories, so make sure you’re up-to-date and staying competitive with your peers.
Couple your discounts with well-timed up-selling and cross-selling
If you really want your discounts to have that extra push to buy, then you should pair them with up-selling and cross-selling offers.
Cross-selling and up-selling can increase your revenue, average order value, and your units per transaction while also providing an excellent customer experience because the selling seems natural and helps them to find the complete solutions that they need.
What is Up-Selling?
The best way to think of an upsell offer would be offering a customer a comparable item at a higher price point. Think of it like an upgrade. Instead of buying the $10 product, they could buy the $15 product and get additional features or value.
These types of offers are relatively flexible depending on your merchandising strategy, and can be used on key shopping pages like the product detail page and shopping cart. However, you’ll want to make sure that your offer is a simple one-to-one product swap for a similar item, rather than taking your customer through another buying process when they were already ready to add to cart.
If you are upselling a product bundle, made up of a primary product combined with additional, complementary products, this type of offer can perform well further down the conversion funnel or even in the shopping cart. Bundles are offering the same product that they already said yes to, with additional products that add more value or solve a problem.
Test out bundles at different points in the conversion funnel to see what works best with your audience.
What is Cross-Selling?
The next type of promotion is similar, conceptually, to product bundling, and is known as a cross-sell offer. You can think of this as offering complementary items to a primary item, but as individual products rather than as a bundle. An example might be something like a helmet offered as a complementary or cross-sell item to a bicycle. And like the bundle upselling tactic, where you decide to show your cross-sell offering should depend very much on the complexity of the complementary products. In general, the simpler the complementary product, the further down the conversion funnel you might be able to show the offer.
Cross-Selling with Carro and Order Bump
Carro and Order Bump make it easy to leverage products for your cross-sell and up-sell offers.
Carro allows merchants on Shopify to leverage Carro’s large (and growing) network of merchants to sell merchandise on each other’s stores. At a high level, Carro allows merchants to add products from top-selling Shopify stores to their own storefront. When a product sells, the order is automatically sent to the supplier, who then fulfills the order for the customer. Retailers don’t have to purchase any inventory and can simply do what they do best: sell.
Carro makes it easy to expand your product catalog so that you can add the complementary products needed for effective up-sells and cross-sells. You can browse a large directory of brands and products to find the products that pair perfectly with your existing best-sellers.
Once you’ve added the perfect products for your irresistible offers, then you can execute your up-selling and cross-selling strategy with Order Bump. Order Bump is a simple app built exclusively for Shopify Plus that enables merchants to sell products on the checkout page of their websites. If you’re a Shopify Plus merchant, you’re probably well aware of the limitations that Shopify has set when it comes to checkout – and for good reason. Order Bump tactfully places a simple but compelling widget in checkout that’s perfect for merchandising promotional products as a last-minute offer for shoppers. And the app doesn’t just stop there, it also gives merchants the ability to create conditional rules or relationships that will determine which promotional products to show based on what customers have in their shopping carts. This way, you can always ensure that you’re showing customers relevant product offers that don’t feel like random advertisements. In fact, studies have shown that customers value shopping experiences that feel ‘personalized’ to their behaviors and needs, and Order Bump gives you the power to do just that.
With these two powerful apps, you can complete your setup with minimal effort and begin creating promotional offers for your customers to boost your holiday sales. So get started today by checking out Carro – a new platform that expands your product catalog and sales reach, and Order Bump – the only Shopify app that lets you sell products in checkout.