To increase the revenue of the business, according to Marketing Witch Jay Abraham, there are 3 ways to increase revenue
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Increase the number of customers
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Increase purchase frequency
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Increase average value per order
Doing all 3 things at the same time is what every business is aiming for, but just one change of index is enough to have a clear sense of revenue growth in the entire business.
Of the three metrics above, increasing the frequency of purchases is the hardest.
In this day and age, traffic is a commodity, like milk, bread, or a packet of snacks. If you want to buy groceries, you go to the supermarket. And if you want to buy traffic, you go to the traffic supermarket.
Just like a supermarket where you can go and buy as much as you like or within your means, you can also go to a traffic supermarket and buy as many website visitors as you want. Any amount is fine, as long as you can control them! Today, businesses can reach millions of consumers within minutes. Now, when it comes to traffic, there are only three names worth mentioning. Those are Google, Facebook and Tiktok. And they account for more than 90% of online traffic.
We live in an era where you can reach millions of potential customers within hours, so increasing the number of customers has never been simpler than it is today.
And the last factor is increasing average shopping cart value (AOV), but most people ignore this part and focus only on these two metrics. Most people do it is Upsell and Cross Sell, but it’s not effective, leading to boredom and no longer want to do it. The inefficiency here comes from not understanding the two concepts correctly, leading to finding products, options, policies, etc., which are not correct for the sold products.
What is Cross Selling?
Cross Selling is the process of encouraging customers to buy a product or service beyond what they originally intended to buy. Often times, cross-sold items complement each other, so customers have more reason to buy both.
After a customer has added an item to their cart or initiated the checkout process, they are implicitly telling the business that they are an active customer and intend to make a purchase. At this point, sellers will usually cross-sell by introducing an additional item or buying a combo if the two are purchased together.
Since most customers are ready to make a purchase at this step, they’ve overcome a major hurdle and are more likely to make a compelling last-minute purchase.
What is Upsell?
Upselling is the process of encouraging customers to upgrade or include add-ons to the product or service they are purchasing. The product or service being upsell is usually a more expensive product or add-on that can increase the overall order value.
Similar to cross selling, upsells typically occur in the buyer’s journey, where they’ve added something to their cart or initiated checkout. As customers research the purchased product, they may have considered upgrading or adding some options to that product. So it is more likely that when the seller upsells at this stage, the customer will decide to convert at the last minute.
Both Cross sell and Upsell are essential in increasing average shopping cart value (AOV) and profitability, and they can often be used together.
However, they can have slightly different effects on the business. For example, an upsell often encourages an upgrade to a higher margin product, while cross selling may not always increase the profit margin, but it will increase the average order value by adding additional products.
Hope you have more perspective to find the products, policies, options … along with the sold products to increase the average shopping cart value better and better.
Source: Mr Tran Duc Trung – CEO OF GOMILLIONS
