eCommerce Lifestyle
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new money machines 2

New Money Machines | Part 2 of 5: Cross-Sell Machines

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In this special episode of the eCommerce Lifestyle podcast, Anton ​shares ​another New Money Machine to use in your eCommerce store.


In this ​five episode series, you'll learn the ​five techniques to earning MORE profits before, during, and even *after* the sale.


Listen in to hear his ​strategy for the ​second money ​machine: ​Cross-Sell Machines.


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Transcript

Hello everybody. Anton Kraly here from eCommercelifestyle.com and welcome to another episode of the eCommerce Lifestyle podcast. Coming to you on a gorgeous Friday morning, and I'm still out in Florence, in Italy. So I'm going to get another quick episode to today like I spoke about yesterday and this is the second of five episodes in the series called New Money Machines. So if you did not hear yesterday's episode, definitely go back to the podcast feed, look for the episode called New Money Machines, one of five. That's where I talk all about our new lead generation money machines. Listen to that. Then come back to this one. Now, the goal of this series is to share some of the, I guess top takeaways from one of my presentations that I just did at our sixth annual Drop Ship Lifestyle Retreat out in Prague.

These are all things that we're doing now to kind of bolt on additional revenue streams to our business. And not just new things, but new ways of doing things, is probably more accurate to say. So with that being said, if you are brand new here, you definitely will want to go to dropshipwebinar.com D-R-O-P-S-H-I-P webinar.com, where you can get my whole free training on how we build highly profitable semi-automated stores, and where you can get a special offer to enroll in my award winning program, Drop Ship Lifestyle, which was voted best eCommerce course by Shopify. Again, that's dropshipwebinar.com. So with that being said, let's get into today's topic, which is cross sell machines. Okay, cross-selling. Now, people confuse cross-selling with upselling pretty frequently, especially online, the two get mixed, but they're very different.

With cross-selling, the goal is to increase your average order value, your AOV, and you do this with cross-selling by recommending related or complimentary items. So not trying to get somebody to buy a more expensive version of a product, instead trying to get them to add things onto their order. That makes sense. Specifically at the time of sale when they're buying. So the worldwide example that everybody knows of cross selling would be you go to McDonald's, you order a Big Mac and they say, "Would you like fries and a drink with that?" That's cross-selling.

Again, recommending related products that compliment it. Another example that's more related to what we can do with eCommerce and something that I think will help make this clear and hopefully give everybody some ideas for how they could do this on their store is actually an example I got while reading a book.

Actually, listening to an audio book, but the book is called A Walk In The Woods. It's by an author named Bill Bryson and it's about hiking the Appalachian Trail. So a good book, it's actually a great book, but that's a side note. The example of cross selling in the book that I wanted to share with you is when he, the author Bill Bryson, goes to a... I guess you'd call it like an outdoor shop before he starts this trek across the United States, or across the Northeast United States on the Appalachian Trail. And he goes into to buy gear for his trip. And he went into the store just thinking that he needs a backpack, right? So he went in there, he went up to the sales associate, and he's like, "Yep, I'm looking for this backpack."

And the guy showed it to him and the guy was like, "Okay, great. So here it is. By the way, what kind of straps do you want for this backpack?" And he was like, "What? It doesn't, come with straps?" And they were like, "Oh no, it doesn't. So we have blue straps, we have red straps, we have black straps. We have these lightweight straps. We have these heavy duty straps and all these different options." And he's like, "Okay, whatever." He picked the straps he wanted. And then after that, the guy's like, "Okay, would you like a waterproof rain cover for it?" And he's like, "What, it's not waterproof?" And the guy's like, "Oh no. You know, these types of bags aren't waterproof, but we have these covers right here and you can pick one of those." So you know, before you know it, he went in for a backpack, but he ended up adding all this additional stuff to it.

And that is what cross-selling is. There's a bunch of things I want you to take away from this. But this process is necessary ,and it's actually helpful. So let's just say that the author, again, Bill Bryson, was going online and he bought this backpack, and he ordered the backpack and then it showed up at his house four days later. And he realized that there were no straps and he realized it wasn't waterproof. He'd probably be pretty pissed because now he's not prepared for his trip, and he has to go back and figure out what to get next. So what you want to do when you're thinking about cross selling and cross selling machines, is what makes logical sense for the customer to get and how can you actually provide value by offering these things through the checkout process, and through the shopping process, because the more value you can provide by literally walking your customers through a process, the better you all do.

And kind of on a side note, you know, where we are right now going into 2020, I'm sure you've seen there are a ton of retail stores that went out of business. And most of them that went out of business and that continue to go out of business, are nothing more than just a commodity where people walk in, they grab something off the shelves, they go to the register, they buy it. The ones that are lasting, and the ones that are even opening new stores, the ones that are expanding in the offline world are ones that do it with this kind of customer service aspect of selling in mind. This cross-selling in a helpful way. This advice type of a sale. So this is what I think about personally when we're building new stores, and when we're optimizing our stores, how can we bring that offline experience online?

And that's what I want you to think about for your niche. Let me also just interject again and say if you're like, okay Anton, that makes sense, but I have no idea where to start. Again, you're going to want to get enrolled in my program Drop Ship Lifestyle. And the best place to start is just dropshipwebinar.com.

So with that being said, we know what cross-selling is. We know the goal is to increase our average order value. We know that what we're trying to do is recommend related or complimentary items. So how do we bring that to the world of eCommerce? How do we bring that into our Shopify stores? Well, the thing that most people do, because it's kind of just the easiest and like the thing that requires the least amount of effort, is to have a section on their product pages that says something like, "We also recommend." So let's just say, you're selling the backpacks, somebody on your product page for the backpack.

Maybe towards the bottom of the page it says, "We also recommend," and then you have different product images and prices underneath. And maybe one is the straps and one is a waterproof cover and one is, I don't know, a water bottle that hangs off the side. Now that does work. The problem with that is it breaks the experience. Meaning, if somebody was on the backpack page and you only had a we also recommend section, they'd have to click off to every product they want, add it to their cart, click to the next one, add it to their cart, so on and so on and so on, and build their own thing. Which works, but there's easier ways to do it. There's a more streamlined way to do it. So that's what I'll be talking about.

Another thing that people also do on their eCommerce stores is bundle products. So let's just say you were selling the backpack that doesn't come with straps or a rain cover. Maybe you make a bundle on your website where the product page is for backpack with straps and cover, and the price is higher to reflect those things, which is better than nothing. But the problem with that is that your price is going to be higher. If nobody else is offering a bundle and you're bundling it together, when people see your ads for this product, yours is going to be more money because yours includes more.

That's, in my experience, not what we want to do. We want to have our prices show a lower, and then allow customers to kind of build up their order and add things on. So again, bundling is better than nothing, but my advice is actually to unbundle and then let people add things on as they're buying.

Now, back to that, right? How do they add things on? Well, like I mentioned, what a lot of people do is just have the, we also recommend section, but that's not what you should do, because that means people have to click through all these product pages. So what you want to do, is on your product page, right by the add to cart button, you should have a section that says, "Upgrade your order." And again, let's say you're selling the backpack, it should say right near your add to cart button. "Would you like to upgrade your..." You can say upgrade your order. Then it could say, "Would you like to add these straps?" And peer person could say, "Yes." And then the next section will pop up. Literally when they click yes, it'll appear and it'll say, "What color straps would you like?" And maybe it's blue, red, green, black, whatever.

Then they click on the color they want, boom. Now that's added to their cart too. And to continue this sales process, again just as it would in a store, once they choose their color, then another question would appear right there on your product page without them leaving. That would say, "Would you like to add a waterproof cover?" And it can say yes and it could say no. And if they click yes, it'll add it to their order. So the reason we do it this way, again having the whole experience on the product page, is so that the customer doesn't have to again go all over our website trying to find what they need. Or even worse, they just buy one thing, and then get it and realize that it's not what they wanted. It's not everything they wanted and causes them just anxieties if they have to go back to [inaudible 00:09:56] or someone else's websites to shop for more items.

So couple of things that I should note, because you might be thinking like, "Okay, maybe you do this already or something like it." It is very important that you do this with logic. Logic is what I just described. If somebody says yes, I want this thing, then show them more options. So again, they're on your website, on your backpack page. They say, "Yes, I want the straps." Then show them the colors available. Then they pick their color. Then say, "Hey, would you like a rain cover?" And the reason you want to use this logic and walk them through a process, is because that's exactly what happens in the offline world, because that's what works.

So let's go back to the camping example, right? The camping store, and let's just say that the guy, Bill Bryson, went to the camping store and he's like, "Hey, I'm here for this backpack," and the sales associate was like, "Okay, cool. Here's the backpack." And then he said, the sales associate said, "Hold on one second, I'll be right back." Then he ran all around the store, grabbed the five different variants of straps they sell, grabbed the four different types of rain covers they sell, grabbed three different water bottles, and ran back up with his arms full of all of these other additional products and said, "Hey, we also have all this stuff. What do you want?"

That doesn't work in the offline world. It doesn't work in online either. Again, that's why we use logic and walk people through. Do you want this product? Okay, then do you want this? Then do you want that? Then do you want this? Take them through the sales process just as would happen if they were in a retail store that does a good job selling and that would stay in business.

So a few key points and key things to think about here with these cross sell machines. First of all, it works best when we are providing value to our buyers, and informing them about related products. Again, I can't stress that enough. You don't just want to throw more products in front of a customer, you want to walk them through a process, showing them what actually makes sense, and what they most likely are going to want to almost complete their order or build out their order. The next thing that you want to think about with cross sell machines is can you unbundle any products to lower your list price, and increase your click through ratio on Google ads? So again, can you pull out anything to lower the price, then give the customer or the visitor the option to edit back on as they're going through the buying process.

Because if you could do that, you'll have a lower price than your competition, and you'll have more people click to your site. Another thing I'll mention is that just like everything we do, you're going to want to focus on the 80/20 rule here. And if you have thousands of products on your website, don't think you have to add this to all of them. Focus on the 20% of products that are already your bestsellers, and then out of those, focus on the 20% that make most sense to actually have cross-sells on the product pages. Add them on, put it to work, let the magic happen and watch your store make a lot more money per order.

Watch your store. It's average order value increase drastically and say, "Thank you Anton," when you leave a review on the podcast. So with that being said, guys, if you want more about this, like the step by step, the technical of how we set this up, that is in Drop Ship Lifestyle. And especially we're about to update to version 8.0 of my program. We've updated it once a year since I launched it in 2013, and we are working on the newest version, which all members that have access now will get access to.

So if you don't have access yet, definitely go to Drop Ship Lifestyle and get enrolled. And if you're brand new, go to dropshipwebinar.com. Get my free training and you'll get a special offer on how to get involved with my coaching program. So thank everybody, appreciate you. I'm going to go enjoy Florence for my last couple of days out here in Italy, and I will be back again tomorrow with part three of five of our New Money Machine series. So thank you everybody. Have a great day and I'll talk to you tomorrow. Bye.

  • Jessa Mae says:

    Great discussion Anton! Never would have thought of it myself but it really made a lot of sense. Is there an app that we can use that lets us make a bundle? or the one by one product recommendations?

    • Anton Kraly says:

      Bold Products Options is great for this 🙂

      And if you enroll in Drop Ship Lifestyle you get all of the step by step video tutorials showing you how to set it up!

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