How to Boost Retention, Loyalty, and Customer Lifetime Value with Personalized Cross-sell and Upsell
Updated: Jun 22, 2022
It's no secret that acquiring new customers is essential for businesses looking to grow. However, retaining existing customers can be just as important - especially if companies want to maximize their customer lifetime value (CLV). Fortunately, there are many ways businesses can personalize cross-sell and upsell programs to boost retention, loyalty, and CLV. This blog post will discuss some of the best practices for effectively executing personalized cross-sell and upsell programs.
The Benefits of Upselling and Cross-selling
Businesses can realize several benefits by personalizing their upsell and cross-sell programs. Some of the most notable benefits include:
- Improved customer retention rates
- Increased customer loyalty
- Higher customer lifetime value
The Challenges to Upselling and Cross-selling
Siloed Data Marketers that can't convert on cross-sell and upsell possibilities frequently lack critical data in one location. Your customer experiences are restricted when your consumer data is trapped in various business applications. Data siloes limit your customer's experience because data from touchpoints such as a CRM system, an email campaign, customer surveys, or a website are often unrelated to marketing. All this data needs to be put together. So that when a cross-sell opportunity presents itself and requires a real-time response to what should be presented, then the next best action to take at the moment of the interaction is served up.
Personalization: Research shows that 63% of consumers will stop buying from a brand with poor personalization tactics. Yet one of the biggest challenges companies faces when personalizing their upsell and cross-sell programs is understanding each customer's interests, past purchases, recent browsing behaviors, and similar data points in real-time. This level of understanding can be difficult to achieve without the right technology in place. Fortunately, some software solutions can help businesses overcome this challenge and provide insights to personalize offers and product recommendations.
CDP is your solution for Upselling and Cross-selling
Companies that sell via eCommerce may also benefit from our CDP to provide a more seamless customer experience. For example, use a pure-play, no-code CDP, like VIEWN, to collect every individual's profile data from your prospect and client universe. Then, utilizing this first-party data, identify and retain at-risk consumers, upsell and cross-sell loyal customers by tapping into this first-party information.
Use up-to-date information to understand where a particular customer or prospect is in their lifecycle. Create dynamic segments based on recent behaviors, interactions, subscription renewal date, consent, customer scores, and more with your CDP. Recognizing consumers across systems allows the Customer Success team to offer the most relevant upsell option to a client calling for renewal.
A product recommendation engine aims to analyze user behavior on e-commerce sites and then provide products they might be interested in. Product recommendations can be made directly on the website, via emails, or advertising banners. The more sophisticated the software is, the more accurate its predictions are; thus, a high-quality e-commerce recommendation engine may significantly impact the conversion rate of online purchases.
Utilizing your CDP as a recommendation engine ensures that your client receives the correct information at the proper time in the appropriate channel. Real-time channel orchestration is the fancy term for this process. There must be logic to identify a customer's cohort for each campaign automatically. Whether they receive messages through SMS, email, or paid advertising, you'll be able to contact them with this critical CDP function.
Product recommendation engine benefits
Conversion rates will be higher due to product relevance – an e-commerce site with a product recommendation engine will convert more than a comparable one without a recommendation engine.
Reduced bounce rate and cart abandonment rate — these KPIs are important to any e-commerce firm and reduce the bounce rate and the number of abandoned carts with relevant and interesting products.
A significant increase in the AOV and number of items/transaction - recommendation engines have improved the average order value and transaction count.
Increased time spent on site and number of pages/visit - Users stay longer and visit more pages per session due to greater content relevance.
Increased efficiency and productivity – targeting emails or advertising banners with relevant items, for example, can enhance the amount of highly targeted traffic.
More personalized content – the users will see more items that appeal to them, making them more likely to stay on the page.
Personalizing upsell and cross-sell programs can be a great way for businesses to boost retention, loyalty, and CLV. However, doing so can be challenging without the right technology. Using a CDP like VIEWN can help businesses overcome the most common challenges in connecting to your customer data and turning it into a retention boosting upsell and cross-sell program. Reach out to us if you need help to bring on a CDP to help you with upselling and cross-selling. We'd love to help.