Cross-Selling and Upselling Best Practices for Vape Shops
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Cross-selling and upselling are often misunderstood tactics. Some have the skewed perception that they are cheap methods of getting your customers to buy more. Still, those who understand these techniques know that they are excellent ways to generate customer satisfaction while also increasing profits. But, of course, it all depends on how these techniques are implemented.
In today’s blog, we talk about correctly deploying cross-selling and upselling tactics, the difference between cross-selling and upselling, and some tips that will make sure you implement these techniques the right way.
Table of Contents
- What is Upselling and What is Cross-Selling and Why is it Important For Your Online Vape Shop?
- Deciding When to Upsell and When to Cross-Sell
- How You Should Implement Upsell and Cross-Sell on An E-Commerce Site
- Tips for Upselling and Cross-Selling
- Conclusion
What is Upselling and Cross-Selling and Why is it Important For Your Online Vape Shop?
Let’s first start by defining what cross-selling and upselling are. Cross-selling is when you attempt to sell additional products than the one that the customer is initially buying. So, for example, if the buyer is getting a box mod, selling them spare coils could be a cross-sell. Upselling is when you try to sell an upgraded version of the person you are initially going to buy. So, for example, if the buyer is getting a pod system, maybe suggesting they get the box mod version or the version with more features would be considered an upsell.
Both of these techniques are important because, when done right, they can be the catalyst for an increase in profits, an increase in average order value and customer lifetime value, and finally, an increase in customer satisfaction and loyalty.
Upselling and cross-selling increase profits because they create more opportunities for the customers to spend more on your vape shop. Instead of purchasing a single product, they instead bring in more profits by purchasing additional items or investing more in upgrading their original intended purchase.
Cross-selling and upselling can also increase average order value and the customer lifetime value. Again, the average order value is easily increased by upselling and cross-selling because more products are sold in each order. And the customer lifetime value is increased because if you can sell them, let’s say, a vape juice along with their device, they are more likely to purchase their next vape juice. Again, because according to Shopify, “...first-time buyers are 27% likely to return, but after their second or third purchase, this grows to 54%.” so the value that they can provide your vape shop grows over time.
Customer loyalty and customer satisfaction are also increased by upselling and cross-selling. When perfect cross-selling opportunities are created that consider all the necessary items a client will need for their purchase, you’ll also help the customer have everything they need when making their purchase, saving them headaches down the line when their package arrives. For example, they realize they are missing batteries for their sub-ohm device. By giving them all the necessary items that they will need to start vaping, you’re doing them a favor, which increases customer satisfaction and customer loyalty.
Deciding When to Upsell and When to Cross-Sell
Deciding when to upsell and cross-sell is pivotal for the success of these techniques. There are specific times when you should try to upsell and cross-sell. Those times are: before the purchase, during checkout, or after the purchase has been made. These three are the ideal times when a customer is more likely to buy cross-sell and upsell products.
How You Should Implement Upsell and Cross-Sell on An E-Commerce Site
In the last section, we saw three pivotal times that you could upsell and cross-sell. Those times are before the purchase, during checkout time, and after the purchase is made. How do those times translate into an eCommerce site? This is how it would break down:
- Before the purchase would be on the product page
- During checkout, time would be on the checkout page
- And after the purchase would be in an email
Let’s take a look at each of these pages and times more closely.
Before the Purchase: Product Page
Although there are no rules for upselling and cross-selling, one of the best ways to upsell is on the product page. You can show them the options they have available to them right from the jump on the product page. This allows them to make an informed decision and will enable them to figure how much the upgrade costs. So if the standard version is $20 the upgrade version would say something like +$10 extra to the right of the product.
To give you an example, you can perhaps use a vape juice of different sizes, on the page, with the option of them choosing a 60ml, a 100ml, or a 120ml bottle. They all have different prices but are essentially the same product. In theory, this could also be done for devices of the same brand that may come in other upgrade options, like a particular edition color or a more powerful sub-ohm tank.
You can always add a “frequently bought together products” section below the main product to cross-sell on the product page. For example, if the customer is looking at a coil building kit, he might find below the kit coil wiring and wicking cotton and two products related to the coil building kit. This section could also be a “recently viewed section” or a “others have also purchased” section.
During Checkout: Checkout Page
Another page where you can cross-sell and upsell is on the checkout page. In this section, just before they input their card information, you can present them with various vaping items to buy. Offering items at the checkout page works because this is when customers are the most impulsive. Although it should be said the offering products at the checkout page is more suited for cross-selling, since to buy a better-upgraded version (or upsell), they would have to get rid of the item in their cart and opt for the upgraded version.
After Purchase: Email
Another way you can cross-sell is via a follow-up email after purchase. Again we don’t recommend you try to upsell at this time or stage since the purchase has already been made. This could make customers feel like they made the wrong choice if they are presented with a better option after their purchase. That’s why we recommend you only cross-sell after purchase.
Cross-selling after purchase would take the form of a follow-up email. These emails could have time-sensitive offers or coupons with a specific date and should be related to the original purchase. For example, if I buy a new box mod, the follow-up email would contain an offer for a vape juice that only lasts 24 hours. This way, you can cross-sell effectively by giving the customer a due date for purchase.
Tips for Upselling and Cross-Selling
There are many things you need to consider when upselling and cross-selling. This section will give you some tips to maximize your efforts and make sure you’re using these selling techniques correctly.
Be Relevant
Perhaps one of the essential tips when cross-selling and upselling is always to be relevant to the products you recommended to your customers. The last thing you want is to generate effects in the recommended section that make no sense with the customer's product. Not only will this not generate many sales, but it could also confuse customers and make them feel as if you’re pushing products instead of providing products that are related.
Timing is key
Another essential part of cross-selling and upselling is timing. We talked about this before in the last part. But to recap, upselling is best done on the product page, when they can see all the offers and decide before they purchase or when they already have the item in their cart, the version of the product they’ll need. On the other hand, cross-selling can be done on the product page, after adding a product to the cart, and even after a purchase has been made. This is largely because, with cross-selling, you aren’t asking them to buy an upgraded version of their device or product but to buy related items that will always be needed when purchasing the original item (think batteries for a vape device).
Deliver Value
Finally, remember that you have to deliver value above all for cross-selling and upselling to work. You aren’t simply offering them more products they can buy; you’re making their life easier by recommending all the products they’ll need to start vaping right out of the box. So creating value for the customer by providing relevant, and timely, the product is above all, the most important thing you can do. The thing that will ensure that your cross-selling and upselling techniques are successful.
Conclusion
Cross-selling and upselling don’t have to be seen as sales tactics that try to squeeze every dollar out of every customer. However, when they are done hastily and without proper care to mix and match products that make sense with each other, they often don’t work. That’s why for your eCommerce vape shop to be successful when implementing these tactics, you have to remember to be timely, relevant, and offer value, which can all be done with the right cross-sell and upsell strategy.