Upselling and cross- selling are the cousins of selling. Upselling is pushing another, often more expensive, version of the product that the customer already owns or is buying.
Upselling accounts for the trousers we bought that are $40 more expensive than we planned for. Cross- selling is selling products that are related to the one the customer already owns. It’s the shoe polish tagged on to the brand new suede trainers, or the hotel you’re induced to book at the end of a flight purchase. Bundling is cross-sell and up-sell’s nephew – it’s the package deal drawn-up by the supplier to make your life easier, the full bag of make-up your mum buys, instead of the lipstick she entered the store for.
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In 2006, Amazon reported that cross-selling and up-selling made up 35% of their revenue and, according to Forrester, product recommendations are responsible for an average of 10-30% of eCommerce site revenue.
If it’s higher levels of cross-selling and up-selling you’re looking for, you’re definitely part of a very popular club. The good news is that engagement software is perfectly tailored to enable suppliers to drive and incentivize these behaviors from their channel partner base.
All of the facets of channel partner engagement software can be used for that exact purpose:
- Competition and gamification
- Public Recognition
- Tier systems & incremental progress
Using all of the motivational drivers listed above, you can guide your channels towards higher levels of upsell, cross-sell and bundling.
Simple incentive mechanics ensure that partners are rewarded for up, cross or bundle selling excess products. Points can be allocated based on purchase revenue or the sale of specific items, all of which can be redeemed for expertly selected and tailored rewards. The system is win, win – you get to increase sales and deal size and reduce manufactory inventory, while partner satisfaction and skills increase. Even customers get a slice of the pie, gaining extra products at a reduced cost.
Tiered membership systems also means you can keep track of your top sellers, and reward them for their top class game, keeping them motivated and increasing engagement from the most lucrative band of partners in your ecosystem.