Having recently launched a new reporting tool, we’ve been digging around some of the statistics and numbers that we can now extract from our technology.
This statistic stood out.
Up-sells perform around 20 times better than cross-sells on a product page.
An up-sell is where suggested products are similar to the product in view, but more expensive – a great way for retailers to increase their revenue.
With our PersonalMerchant ecommerce personalisation technology, our up-sells are decided not just through price and category based rules, but by using individual visitor behavioural data to ensure we are up-selling the most relevant products. And it looks like it’s working!
It demonstrates that product page suggestions are not that effective when using the simple “people who bought this also bought” algorithms commonly used for cross-sell suggestions.
By better understanding the visitor and their unique preferences, behavioural up-sell product suggestions leads to more clicks on upsells (10 times more clicks than cross-sells), and, most importantly, result in up to 20 times more sales and revenue.
For retailers now thinking ‘how can I effectively suggest accessories if I can’t cross-sell’, think again.
How can I cross-sell more effectively?
Checkout page cross-sell suggestions receive, on average, the second highest amount of clicks after homepage product suggestions. Using “people who bought this also bought” algorithms, combined with maximum price rules and filtered by personal preferences, retailers can realise an average of 3% of revenue from effectively placed product cross-sell opportunities on the checkout page.
We’ll be releasing more stats and numbers over the next few weeks – make sure you’re signed up to receive our GoodIntent newsletter for a monthly roundup of personalisation and ecommerce industry news and views! Sign up with your email in the footer below.
What do you think?
The above is the aggregate data from all of our PersonalMerchant clients – have you experienced something different? Are cross-sells more important than up-selling?
Tweet us @TweetIntent with your views and we’ll add them to the post!
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