Feb 9, 2019 03:58 AM
(This post was last modified: Feb 9, 2019 04:23 AM by Mr.Motivation.)
Increase Your Average Order Value For More Profits!
Customer acquisition costs are getting higher and higher due to competition so to keep up with the ad costs you will need to increase customers average order value and get the most out of every customer, this is a must have strategy for every e-commerce business for example dropshipping stores.
The one who can spend the most on ads will win that market always!
Increasing average order value you will need to cross-sell, upsell and downsell effectively.
Upselling:
Up-selling is a marketing technique where you try to convince a customer to purchase a more expensive product instead of original product or to buy both, the original product which they were buying in the first place AND also the upsell product.
Example:
Have you ever been to McDonald’s and ordered a 300ml Coke, only to hear that for 30 cents more you could get a 500ml Coke instead? That is up-selling. What about when you order a cheeseburger and they ask if you want some fries along with it? Up-selling too.
Cross-selling:
Cross-selling is where you try to get customer buy related products along with the first product they are buying, while upselling usually is upgrading the first product to more expensive one.
Example:
Suppose you sell web design services. Many clients will not know how to promote or search engine optimize their websites, so you could cross-sell these consulting services (either by providing them yourself, or by creating a partnership with a company that will provide them for you).
Down-selling:
If your customer decides to back off from buying the product they were first buying then you could offer cheaper version or related product instead.
The main goal here is to acquire the customer even if you would just break even or even make a slight loss but customer is always a customer and you can do follow up emails to sell other products. (Getting customer without profit doesn't equal failure)
Example:
Car dealers down-sell all the time. If you enter a dealership looking for a BMW and get scared with the price, the salesman will certainly bring up many other options that cost a lot less. That is down-selling.
If you don't implement up-selling, cross-selling or down-selling you are most likely leaving money on the table!
![[Image: aQfQzDA.png]](https://i.imgur.com/aQfQzDA.png)