Want Fries and Shoes With That?
Management of your upsell and cross-sell promotions is what makes the difference between 5 percent and 25 percent added to your AOV. This means managing what is being sold to whom to increase the value of upsells and cross-sells accepted (increasing prices and number of upsells), as well as increasing the frequency with which your customers accept your upsell and cross-sell offers.
Mark Hardy, founder of Advantage Line Telemarketing and now a telemarketing consultant, concurs. His rules for what percent of buyers will convert to an upsell or cross-sell offer are:
1) Try nothing, get nothing,
2) Try something that is appropriate for your audience, but not customized or targeted to individual customers or segments, and get 20 percent to 25 percent acceptance, and
3) Customize and target your upsell offers, and get 35 percent to 50 percent acceptance.
Examples of the difference between merely appropriate offers for your audience and customized and targeted specials:
- A tea and food cataloger that offers discounted cookies as an upsell has increased its AOV by 20 percent.
- A sporting goods outfitter that upsells a membership club with instant savings on the current purchase to customers who are not already members gets up to 50 percent conversion for this offer.
Fine-tune for Success
Many times, making the most of upsells and cross-sells means practicing CANI—constant and never-ending improvement—making offers, reviewing results, listening to customer reactions and response to upsells on monitored or recorded calls, revising scripts and offers, etc.
In doing this, I helped a fitness equipment marketer take its increase in average order value from 17 percent over the base average order amount up to 24 percent over the base average order amount in the course of six months. If the base average order is $100, this means going from a $117 average order to a $124 average order, just by paying attention to details and managing the process. All for the same cost per order. How many other marketing tactics can make this sort of claim?