Making (More) Money in Online Stores
WASHINGTON -- "This session's a little bit different," opened Michael Dell'Arciprete, vice president of marketing of coffee retailer Boca Java, here yesterday at eTail East 2008. "This one is all about making money."
At most conferences, last sessions of the day usually don't attract the crowds -- and, granted, another of eTail East's three tracks had been rescheduled -- but the room was surprisingly packed as attendees filled every seat and lined the back walls for Dell'Arciprete's presentation on "Best Practices for Cross Marketing and Upselling to Drive Higher Sales."
According to Dell'Arciprete, the objectives of cross- and upselling customers are threefold:
- increase the average order value (AOV);
- increase the customer satisfaction; and
- increase product awareness.
In contrast, he explained to the audience, the following describe what cross- and upselling should not be:
- a method for pushing slow moving inventory;
- a method that causes customer confusion or shopping-cart abandonment; or
- a method that decreases customer satisfaction.
In his presentation, Dell'Arciprete outlined exactly what e-commerce marketers must achieve -- and avoid -- to successfully benefit from cross-sell and upsell opportunities:
- Show relevant items: When a customer's selected an item, present links and images to products that supplement that items, or alternatives such as larger amounts, which become upsell opportunities.
- Speak to the customer: Try "You might like," as opposed to "We suggest."
- Solve problems: Based on what that consumer is browsing for or adding to a shopping cart, suggest items that are typically needed in conjunction with the product -- it not only avoids the hassle of having to purchase later on, but also saves on additional shipping costs. Offer deals that provide a discount on the combined price of the products so that it's cheaper than buying individually.
- Let customers sell to customers: Enable your community of customers to create user-generated content to rate and review products, thereby improving a company's "credibility factor." Show "Top Rated" items that help customers see what others like them have purchased.
- Cross-sell and upsell in the cart: The biggest mistake marketers make is forcing consumers to leave the shopping-cart page in order to add to their purchase. This risks confusing the customer in a way that may mean passing up an additional product, or worse, abandoning the cart altogether once the site has navigated the consumer away from the checkout process. When offering additional products for consideration, have a check box -- or an "add to cart" button -- that seamlessly includes the item. While it's best to keep a consumer on the same page, make sure a shopper can still easily access product pages without fear of disturbing an existing order. (Pop-up or "hover-over" windows can work.)
- Use time-sensitive promotions: Giving consumers a sense of urgency motivates them to take advantage. It is critical, however, to ensure that the deal is limited and does not get recycled, a mistake that could significantly decrease the credibility of all future deals -- and, worse, brand credibility in general.
- Include the service accessories: Make impulse-based service-related purchases -- such as gift wrapping, gift cards, warranties, storage containers, etc. -- highly visible.
- Give them value they've earned: Consider bundling multiple items, discounting one item with the purchase of another, or providing services such as free shipping when customers have reached a certain threshold.
- Explain things when necessary: Provide an "online glossary" that communicates the characteristics of an item.
Dell'Arciprete also pointed out that, while putting these measures in place, there are common e-commerce mistakes that must be avoided:
- Don't offer too many options -- a crowded site will often lead to confusion and distraction.
- Don't offer items that are completely irrelevant.
- Don't speak in an "expert" language. Dell'Arciprete recalled going to a site that actually "made [him] feel dumb." Provide descriptions or definitions that directly communicate the product and its features, using language that doesn't alienate shoppers.
- Don't engage in brand wars, especially when a customer is about to check out. Seeing a new alternative, customers may want to leave the site to conduct research -- and that could result in the decision to end up purchasing elsewhere.
- Don't offer seasonal items post-season, unless there's a discount angle, such as, "Prepare for later by buying now."
- Don't show out-of-stock items unless back orders can be made seamlessly.
News relevant to the customer relationship management industry isposted several times a day on destinationCRM.com, in addition to thenews section Insight that appears every month in the pages of CRMmagazine. You may leave a public comment regarding this article byclicking on "Comments" at the top; to contact the editors, please email editor@destinationCRM.com.
Related Articles
Retail Buys Into New Social Media Tools
23 Sep 2009
More retail merchants are on Facebook and Twitter than they are employing customer reviews and viral videos, according to a survey by The E-tailing Group.
Retailers Better Buy In to Social Media
27 Feb 2009
eTail West '09: Companies are either wallowing in uncertainty or else diving aimlessly into unknown waters -- either way, the brand takes a hit.
Online Retailers Actually Had a Holly, Jolly Christmas
26 Feb 2009
eTail West '09: With revenue down, retailers are having to rely more on analytics than ever before.
Most Marketing Is Now Online
10 Sep 2008
New research suggests that the bulk of an average marketer's budget is now spent online.
Nine New Vendors Join Gartner's E-Commerce Magic Quadrant Report
01 Sep 2008
Magic Quadrant for E-Commerce '08: Veteran firms IBM and ATG top the field -- but the field itself is twice as big as it was last year.
Consumers to Marketers: Get Real
07 Aug 2008
eTail East '08: Consumers just want to buy from someone they can relate to.
Online Shopping Picks Up Steam
20 Feb 2007
While overall satisfaction with e-commerce continues its upsurge, the online travel industry is feeling the competitive pressure from airline and hotel sites, and travel search engines.
E for Excellence
21 Feb 2008
Other industries could stand to learn a few things as e-commerce continues to deliver outstanding customer satisfaction.
7 Qualities of a Customer-Centric Business
15 Jan 2008
National Retail Federation Convention '08: According to the 97th annual NRF confab, what really matters in today's economy goes far beyond price.
E-Retailers' Money Monday
27 Nov 2006
Cyber Monday, the online retailer's Black Friday, will see the highest level of spending for this post-Thanksgiving shopping day of any year to date; high interest in e-retail popularity will continue year 'round.
E-Commerce Gets Some Satisfaction
22 Feb 2006
Not all sectors of online business are seeing substantial uptake in adoption and satisfaction, but the channel continues to gain traction for its accessibility and ease of use.
E-commerce Best Practices Make Perfect
01 Jun 2006
CRM magazine presents what some of the best minds in the industry have to say.
The 5 Pain Points of E-Commerce
20 Sep 2007
At Shop.org's Annual Summit, one speaker rebuts the conventional wisdom that e-commerce has peaked, and reveals the "truths" about online marketing and how to fix them.
Gartner Combines Two Magic Quadrants
14 Feb 2007
Magic Quadrant for E-Commerce '06: ATG and IBM WebSphere Commerce top the new quadrant, an examination of vendors delivering B2B and B2C e-commerce offerings.