the art and science of cross selling [a guide for e-commerce]

THE ART AND SCIENCE OF

CROSSSELLING

A GUIDE FOR E-COMMERCE

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WHAT EVEN ISCROSS-SELLING?"Cross-selling is the practice of sell ing orsuggesting related or complementaryproducts to a prospect or customer. " investopedia.com

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35%Amazon attributes up to 35% of its revenue to

cross-selling – both the “Frequently BoughtTogether” and “Customers Who Bought This Item

Also Bought” sections promote products related tothe item that you are currently viewing on the site.

SOURCE: WWW.FORBES.COM

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1 MORECOMPLICATEDTHAN IT SEEMS

For online store owners or the E-Commerceexecutives, cross sell ing is both an art and a

science.

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2 PHYSICALRETAIL

In the physical retail environment, most of thecross sell ing happens with the help of the

sales rep.

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3 ONLINE RETAIL

Online store environment lacks the importantsales rep figure. This in turn makes the

eCommerce person turn to marketing technologyand his/her own senses in order to come up with

successful cross sell ing techniques.

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4 NOT ALLPRODUCT AREIMPULSEITEMS

Candy is an impulse buying product and youcould always have room for the second or even

the third candy. But when the product is amedium to high priced item, it gets hard to

cross sell to a shopper who has already spent afew bucks on a recently purchased item.

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ASPECTS OF ASUCCESSFUL

CROSS SELLINGOFFER

Knowing what the shopper is about topurchaseUnderstanding his/her needsHaving a sense of shopper’s priceelasticity levelKnowing about complementary items (i .e .A goes well with B, C is a cross sell ingitem for D)

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5 DIFFICULTY OFPROCESSINGONLINE DATA

During online shopping, there is no sales rep whocould profile the shopper instantaneously. That iswhy processing shopper data in real t ime becomes

hard.

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6 REAL TIMEDATAANALYSIS

Real time data analysis coupled with humanintelligence could as well translate into cross

sales.

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"REAL TIME DATAANALYSIS COUPLED

WITH HUMANINTELLIGENCE CAN

BRING CROSS SALES."

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7 AUTOMATICCROSS-SELLINGDECISIONS

When a visitor views a certain product page, theprocess starts. That particular product certainlyhas a cross sell ing item and it ’s for the ‘engine’

to decide which products out of this cross sell ingportfolio go well with the viewed item.

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8 LET THEALGORITHMDO ITS MAGIC

The engine uses clickstream data and transactionalinformation to make this predictive

decision. Certain information such as price, brandchoice, previous transactions finds its way in the

‘predictive personalization algorithm ’ .

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9 HAPPY ONLINESHOPPERSHAPPY STOREOWNERS

If the ‘human knowledge ’ also supports thealgorithm as to which categories are

complementary, then the cross sell ing offer canbe improved. By this way, the art and science iscombined to develop a successful cross sell ing

offer on E-Commerce sites.

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THANKYOU

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