Product simulation for cross-selling and up-selling

By | June 22, 2009

I just ran across an interesting blog post entitled “Measuring and Improving Cross-Sell and Upsell” at  It gives fascinating numbers and insights about existing online retailers’ current abilities to cross-sell and up-sell products.  What struck me is how well product simulation covers all of the take-away messages:

  1. “we think you’ll also love…” — by putting products in real-world situations, you can expose customers to related products they may not have considered, just like the “we think you’ll also love…” items currently tagged onto shopping cart items.
  2. Quoting Mike Svatek’s webinar of effective merchandising on Elastic Path, the post says cross-selling works well for “considered purchases”, the ones with higher cost and higher involvement.  The consumer who uses simulations to evaluate products will almost certainly be ones prepared for higher involvement in the procurement process (whether in B2B or B2C) — natural candidates for cross-sales (and the consumer will likely be appreciative of the relevance of related products or services).
  3. Again quoted from Mike Svatek’s webinar, the post says up-sells work best when there is “a small difference in dollar value or a small nominal percentage difference – 10-20% max. You need to show some incremental value for the increase in price.”  Including optional product features in the simulation is a great way to lead consumers to the complete product they need.

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