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When Upselling Hurts: How Too Much Cross-Promotion Can Kill Conversions

December 3, 2014 - 1 Comment

First of all, don’t get me wrong: cross-selling and upselling, employed in moderation, are extremely useful. As you may know, it’s six to seven times easier, and cheaper, to sell more to an existing customer than to hook in a new one.

But it’s crucial that it be done right.

For example, most eCommerce retailers believe that product recommendations will always increase the number of sales and the profits from them. But that’s not always true. According to an e-tailing group merchant survey, 6 out of 10 retailers don’t actually know how recommendations affect their business. It goes without saying that relatively few retailers are testing and optimizing their performance, as well.

The truth is that product recommendations’ performance depends on how and when you display them. And not everyone gets this right. Cross-selling and upselling are the bane of many customers just because they’re so often done poorly, with the focus put on the business’s aim of selling extra stuff instead of the customer’s aim of making sure the extra stuff will actually benefit them.

Here are some ways that tends to happen and how to avoid them, to boot.

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