It’s a struggle that all e-commerce merchants share – how can you increase your store’s revenue? While bringing new customers to your store is a great place to start, it’s also usually very expensive. Plus, you’re much more likely to sell to existing customers than new ones. So the question becomes, how do you generate more revenue from your existing customers?.
A time and cost-effective strategy that can have a dramatic impact on your store’s revenue is to implement product deals that you display throughout your store. Upselling and cross-selling deals can be extremely effective across all industries. Just ask Amazon; founder Jeff Bezos has previously reported that product deals account for up to 35% of Amazon’s total store revenue.
So, let’s take a look at what product deals are and how you can use them to generate more revenue.
What are product deals and how do they work?
“Buy 3 and save $15”, “2 for the price of 1” and “Choose any three for $100” are all examples of product deals. Rather than discounting a single product, deals are based on conditional selling and discount rules. This is a great tactic that allows merchants to offer a small discount as an incentive to encourage their customers to purchase more products than they otherwise would have done, increasing your average order value (AOV) and generating more revenue for your store.
Some merchants choose not to discount their products, for a variety of reasons. Product deals can still be effective without a discount – sometimes just planting the seed in your customers’ minds, by showing them multiple, related products, is enough to convince them to add an extra item to their cart before they check out.
Examples of product deals in action
The type of deals you choose to offer throughout your store depends on many factors, including your products, your revenue goals, and your buyer personas. If you’re looking for some inspiration, here are a few examples of successful product deals in action.
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Add cross-sell bundle deals to your product pages
Cross-selling on your product page is a great way to incentivize your customers to buy more. This type of deal is similar to the “frequently bought together” or “customers also purchased” deals offered by Amazon. One of the tricks to making this type of product deal convert is to make sure you are displaying or offering products that complement the initial product the customer is looking at.
Source: dipalready.com
In the example above, planet-conscious haircare brand Dip is offering a cross-selling deal on their product pages. When their customers are viewing a travel tin, they offer a second tin in a different color, with a small discount for customers who purchase the set. Given that Dip sells both shampoo and conditioner bars, selling two tins together makes perfect sense.
2. Create packs of products to sell as a single item
Another extremely effective cross-selling technique is to offer pre-defined packs of products to your customers. This technique is perfect for retailers who sell a lot of gifts – you can group several products together into a gift pack, perfect for holiday sales and other special occasions. Your customers will appreciate the ease of such a purchase; they won’t have to navigate through several product pages to find what they’re looking for.
Source: shop.huonaqua.com.au
Take a look at this great example of a gift hamper above. Not only has Huon Aquaculture put together a product pack their customers can easily purchase in a single click, but they have also made it very sellable. Firstly, customers can clearly see what’s in the hamper, including the size of each individual product. Secondly, they have included a beautiful lifestyle image of all products in action together, showing the value of purchasing multiple products over a single item.
3. Use tiered discounts to promote upselling
Yes, customers love discounts! A great way to encourage a larger purchase is to offer tiered discounts that encourage bulk purchasing. For example, you can upsell to a customer by offering a 10% discount when they purchase two of a product, a 15% discount when they purchase three, a 25% discount when they purchase four, and so on.
Source: samarabags.com
Samara offers tiered discounts on their jewelry boxes. As you can see above, they clearly spell out the savings, making it easy for the customer to see the value in purchasing in bulk. Also, they offer several tiers, so there is flexibility for customers who may want five boxes, but not ten.
4. Inspire your customers to purchase complete looks
“Shop the Look” has become a popular option for many e-commerce fashion brands looking to increase their AOV. Typically, a Shop the Look gallery is displayed on a dedicated page in your store. It features different images of product groupings, such as a hat, dress, and shoes, that make up an entire matching outfit. A visual display like this helps customers see the value of multiple products purchased together, similar to how a mannequin works in a brick and mortar store.
Source: arthouseco.com.au
Importantly, Shop the Look isn’t just a tool that fashion retailers can benefit from. In the example above, Arthouse Co offers living room sets – beautifully curated matching artworks to liven up any room. Showing matching pieces (and offering a small discount when a customer purchases multiple products) encourages customers to buy more.
5. Let customers build their own bundles
Letting customers build their own product bundle is another effective technique for selling more products. “Bundle builders” offer a few advantages over other types of product deals, mostly because they are so customizable. While pre-defined product deals can work really well in some settings, your customers might decide not to purchase the bundle if there’s one specific product in it that they aren’t interested in. With a bundle builder, they can simply avoid this product, and checkout knowing that their bundle contains everything they were looking for.
Source: lilisampedro.com.br
Brazilian swimwear label Lili Sampedro has created “family kit” pages throughout their store, where customers can first choose a child’s swimsuit, then matching adult swimsuits and beach apparel. Letting customers creat their own product bundle allows shoppers to buy products that all match, but also suit their unique specific style.
How to add product deals to your store
On Shopify, there’s no built-in functionality for adding product bundles to your pages. This means that you either need to use a third-party app, or seek out a custom-coded solution. Apps are typically more affordable, more user-friendly, and a better long-tern solution.
A great option for adding bundles and deals to your store is PickyStory, used to create each of the deals above. This app offers a diverse selection of deals and optional discounts. Deal widgets can be dragged and dropped onto just about any page in your store, including product pages, a dedicated gallery page, collections, the cart page, and so on.
Boost your bottom line with product deals
Product bundles and deals are a great way to increase your store’s AOV. One of the keys to creating effective deals that convert is to carefully consider the deal strategy that works best for your store. This will depend on your products, your customers, and your store’s layout. It may take some time to get it right, but once you’ve cracked the code, you can reap the rewards.
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