Artificial intelligence provides efficient ways to present similar or complementary products, to a product that a customer is considering to buy, on your eCommerce website. Potential customers may be interested in buying similar or complementary products, and properly anticipating on these needs will not only lead to an increase in sales, but it will also positively influence customer relationships.
In an online-first retail world, it is a must to enrich the customer journey in the best ways possible. Two common techniques used in this process are cross- and upselling. When rightly executed, these methods are mutually beneficial for the customer as well as the organization.
What is cross- and upselling?
Cross-selling is a sales technique which is used to get a customer to spend more, by purchasing products that are somehow related to the initially bought product. An example of this phenomenon is when a laptop is sold online, customers are presented with a laptop sleeve to go along with it. This may appear in sections as ‘frequently bought together’ or ‘others also bought’.
This sales technique is comparable to upselling, which is a practice of encouraging customers to purchase an upgraded or more enhanced version of the product that the customer is already considering to buy. An example is to offer a streaming service’s customers the possibility to upgrade to a 4K Full HD streaming experience on 5 screens simultaneously instead of the regular 1080p HD and only 3 screens.
What are the benefits of cross- and upselling?
Cross- and upselling come with many benefits for organizations, some of which are listed below:
1. Increase in profits
The first benefit is that the techniques will lead to an increase in profits. Related products are offered to the customer and many customers will be interested in buying these products, which leads to a higher conversion rate. The average value of every sale will also increase.
2. Increase in customer engagement
Another benefit is that customers could be more satisfied with their customer journey. While some may argue that customers find it annoying that more options are given, others will be pleased that related options are provided so they can make a well-informed choice. This form of convenience can positively influence customer engagement and customers’ loyalty to the organization. Building on deeper, stronger customer relationships also increases the chance of retention.
3. Increase in customer value lifetime
Cross- and upselling will not only lead to an increase in profits, but the overall customer value lifetime will also grow. This result is fed by the fact that loyalty and engagement is generated through the cross- and upsell techniques. Customers who are loyal to your company are more likely to retain and spread the word to other potential customers.
In conclusion, cross- and upselling are great ways to increase your customers’ profitability over time. Organizations that neglect these sales techniques potentially leave money on the table.
How to offer similar and complementary products or accessories?
In order to offer the right product combinations to customers on your eCommerce website, you need to detect meaningful relationships between your products. By comparing all product features with smart algorithms, alternative or comparable products can be detected and offered to customers on your eCommerce website.
How to automate this process?
Linking individual and related products by hand is a time-consuming process, especially for organizations that offer a wide range of products. It is possible to hire employees solely to generate product relationships, however, automating this process can save your company a lot of time and money.
PowerRelate.ai is a platform that can automatically detect meaningful relationships between your products based on product characteristics. While manually selecting these relations takes valuable time, PowerRelate.ai uses powerful algorithms to do the hard work for you. Due to the friendly interface, there is no technical knowledge required which makes this smart tool accessible to everyone. With the help of the PowerRelate.ai software, sales will be significantly increased due to the wide range of right product combinations offered to your customers. Moreover, the tool can, due to the fact that intelligent product matching is convenient for customers, positively influence the customer journey of your organization.
Intergamma, owner of two hardware store-chains, wanted to enrich their customer experience by offering variants and alternatives to products, products in the same product family and accessories. Using the PowerRelate.ai software has made it possible to automate this process while much time and money was saved.
Staples, an office retail company, collects and stores product data from the products they sell. Data is collected from various sources, enriched with other data sources and subsequently divided into the correct product class and sub-class. In order to facilitate this labor-intensive process, Squadra Machine Learning Company developed an algorithm that predicts the (sub-) class of a product. This was founded on the manufacturer, product description and (optionally) product characteristics based on a training data set provided by Staples.