According to Forrester research, cross-selling and up-selling is responsible for anywhere between 10% - 30% of e-commerce revenue. Cross-selling attempts to sell a complementary product or service (e.g. offering a printer to customers buying a computer), while up-selling attempts to sell a more expensive version of the same product (e.g. offering a faster, more powerful computer). However, superior results cannot be achieved by making generic offers across the board, or pushing offers without concern for fit or need. Today's customers know when you're trying to squeeze more from their wallet, and irrelevant offers end up decreasing their engagement.
Cross-selling and up-selling is most effective when a business moves from generic offers to targeted "just for me" offers, which are personalised to the specific needs and characteristics of each customer. The challenge in generating dynamic, personalised offers is the amount of data analysis required to decide:
- What products or services should be recommended? to what customers?
- What items should be promoted together? at what price? when?
- What is the next item the customer will look for?Complexica's E-commerce Recommendation Engine – powered by our Artificial Intelligence engine Larry, the Digital Analyst® – can deliver dynamic and highly personalised cross-sell and up-sell recommendations, in both B2B and B2C selling environments. Based on self-learning algorithms that automatically update in real-time, our E-commerce Recommendation Engine "self-tunes" to create improvements in the conversion rate and average order value, as well as the customer shopping experience.
By analysing buying and browsing habits in real time, Larry can also determine a dynamic price based upon each customer’s perceived ability to pay. And for products and services limited by finite capacity or supply, Larry can factor in demand, supply, customer history and behaviour, as well external factors such as time of day, to maximise yield. To learn more about our E-commerce Recommendation Engine, please contact us.