1. The power of up-selling and cross-selling.
How to double your profit without
spending a dollar on Ads.
David Braun
CEO www.templatemonster.com
Templatemonster.com is the leading provider of
Prestashop templates. We offer the largest collection of
professionally designed templates, all available for
purchase at Prestashop Marketplace.
David Braun March 20, 2012 - Barcamp 5 PrestaShop

2. What is up-selling?
Up-selling is a sales technique whereby a salesperson
induces the customer to purchase more expensive
items, upgrades, add-ons in an attempt to make a more
profitable sale.
2012
David Braun March 20, 2012 - Barcamp 5 PrestaShop

3. What is cross-selling?
Cross-selling is a an action of practice of selling
additional products or services to an existing customer.
2012
David Braun March 20, 2012 - Barcamp 5 PrestaShop

4. Who does up-selling and cross-selling?
• Insurance companies (better coverage, more expensive plans).
• Financial institutions (additional services).
• Phone carriers (more expensive plans, add-ons, phones).
• McDonalds (can’t buy a coffee without being asked about the desert).
• Car manufacturers (can’t buy premium options without choosing
leather seats).
David Braun March 20, 2012 - Barcamp 5 PrestaShop

5. Who does up-selling and cross-selling?
• Web hosting providers (more expensive plans, additional products).
• Online services (push you to prepay for a year, other services).
• Online retailers (shipping, gift wraps, memberships).
• Computer makers (Dell, Apple, Asus).
• Amazon.com (deserves a dedicated placement).
David Braun March 20, 2012 - Barcamp 5 PrestaShop

6. Why do up-selling and cross-selling?
• Acquiring new customers is more costly and time consuming.
• Selling to new customers is four times more expensive (B2B).
• Cross-selling creates more customer retention or “stickability”.
• Most customers prefer a wider choice and appreciate your efforts.
• The more services customers buy from you – the better chance they
stay longer with your company. You become service orientated.
• The most cost effective way to grow your business.
David Braun March 20, 2012 - Barcamp 5 PrestaShop

7. Quick example.
☐ A
Price $50 Total sales: $5000
Profit $10 Profit: $1000
100 orders a month
☐ B
Price $75 Up-selling
=
Total sales: $7500
Profit: $1500 (+50%)
Profit $15
Total sales: $9500
☐ B
Price $75
+ ☐ C
Price $20
Profit: $2300 (+130%)
Profit $15 Profit $8 Up-selling+cross-seling
David Braun March 20, 2012 - Barcamp 5 PrestaShop

8. When do up-selling and cross-selling?
Up-selli
ng
Up-selli
n g
Cross-s
elling
Cross-s
elling
David Braun March 20, 2012 - Barcamp 5 PrestaShop

9. Examples
David Braun March 20, 2012 - Barcamp 5 PrestaShop

11. Cross-sell/Upsell on Product Pages, Conversion Rates:
•Less than 1% conversion – 5% of retailers
•1%-2% conversion – 15% of retailers
•3%-4% conversion – 5% of retailers
•5%-7% conversion – 6% of retailers
•8%-10% conversion – 2% of retailers
•11%-15% conversion – 1% of retailers
•More than 15% conversion – 2% of retailers
•Don’t know conversion rates – 50% of retailers
•Don’t merchandise on product pages – 14% of retailers
Cross-sell/Upsell in Shopping Cart, Conversion Rates:
•Less than 1% conversion – 8% of retailers
•1%-4% conversion – 16% of retailers Source:
E-tailing group’s 8th
•5%-10% conversion – 9% of retailers Annual Merchant Survey Report
•More than 10% conversion – 3% of retailers
•Don’t know conversion rates – 44% of retailers
•Don’t merchandise in shopping cart – 20% of retailers

12. Tips and tricks.
• Use bundle offers. Bundle your products to increase the
convenience and make customer choice easier.
Note! No discounts given. Just convenience
David Braun March 20, 2012 - Barcamp 5 PrestaShop

13. Tips and tricks.
• Add a service. Offer an additional service to the main product you
sell. This could be additional warranty, protection plan or installation
service.
David Braun March 20, 2012 - Barcamp 5 PrestaShop

14. Tips and tricks.
• Mark the choice. Use “Recommended”, “Most Popular”, “Customer’s
Choice” tags to draw the attention to a specific option you wish to
highlight.
David Braun March 20, 2012 - Barcamp 5 PrestaShop

15. Tips and tricks.
• Keep It Stupid Simple (KISS). Do not offer too many options, do not
distract customers, do not offer complicated products, requiring
additional decisions to be made for up-selling.
✔
David Braun March 20, 2012 - Barcamp 5 PrestaShop

16. Tips and tricks.
• Watch the price. The maximum price for up-sell should not exceed
30% of the main item’s price in customers shopping cart. (Own
experience).
David Braun March 20, 2012 - Barcamp 5 PrestaShop

17. Tips and tricks.
• Make it easy to buy. Play with design and controls to make it really
easy for a customer to say “Yes” and get it. Pay a special attention to
billing issues.
David Braun March 20, 2012 - Barcamp 5 PrestaShop

18. Tips and tricks.
• Two transactions instead of one. Sometimes is It wise to make a
sale using two transactions instead of one to prevent chargebacks or
refunds of a combined order.
David Braun March 20, 2012 - Barcamp 5 PrestaShop

19. Tips and tricks.
• Have a live assistance on Shopping Cart and Checkout. Those
are critical pages on your website, be the first to know about any
billing issues or other concerns customers might have during the
purchase. Collect data of all purchase attempts.
“Forrester estimates that the click-to-call and click-to-chat features boosted
the composite company’s average order values by about 23%, from $115 to $141,
due primarily to the call center agents’ abilities to upsell and cross-sell merchandise
to customers who use click to call before checking out.”
Internet Retailer, 2012
David Braun March 20, 2012 - Barcamp 5 PrestaShop

21. Tips and tricks.
• Follow up your customers. Send them “Don’t forget” emails
reminding some offers they might forget to choose during checkout.
Rewrite your sales copy, add personalization.
David Braun March 20, 2012 - Barcamp 5 PrestaShop

22. Must have tools and systems
• CRM
• Newsletter management
• Website Analytics Tool
• A/B testing
• Live Chat
• Lots of Red Bull
• And of course Prestashop
David Braun March 20, 2012 - Barcamp 5 PrestaShop

23. Thank you for your attention
David Braun March 20, 2012 - Barcamp 5 PrestaShop