Boost your Ecommerce ROI with Datadriven Crosssell Upsell

Speaker Parisa Rai Data Scientist, Netcore Solutions Tech Savvy, Machine Learning, enthusiast, insights coupled

Things To Remember Tweet Use below hashtags and handle to tweet during the webinar @netcoresolution #Netcore. Webinar #Mar. Tech 10/27/2020 Copyright 2018. Netcore Solutions. Question Please use the chat window to ask questions during the webinar Slides & Recording You will get an email with slides and recording post webinar 3 3

Agenda 1. Why Cross-sell? 2. Understanding How to Cross-sell • Response Omni-channel Recommendation Engine • Best practices for Cross-selling and Up-selling 3. Few Use Cases Around Cross-sell 4. Best Practices Followed by the Industry 10/27/2020 Copyright 2018. Netcore Solutions. 4

1 10/27/2020 Copyright 2018. Netcore Solutions. Why Cross-sell? 5

Defining cross-selling and upselling Ø Up-selling: Selling a more expensive product to the customer to make a more profitable sale Ø Cross-selling: Selling an additional product which complements the original purchase Copyright 2017. Netcore Solutions

Customer Retention An average online store gets 43% revenue from repeat purchases, according to a leading ecommerce platform Amazon was reported to have earned a whopping 35% of their revenue from crossselling Copyright 2017. Netcore Solutions

Increases Average Order Value + Sports Shoes of 1. 2 X price Sports Shoes

Improves Customer Life Time Value 1 st purchase: Laptop 2 nd Purchase: Anti-virus Probability of selling to an existing customer is 60 -70% against selling to a new customer is 5 -20% Copyright 2017. Netcore Solutions

2 10/27/2020 Copyright 2018. Netcore Solutions. Understanding how to Crosssell 10

Simplest Techniques To Increase Sales • Next higher end model • Add the on-product

Recommendation Engine Apply knowledge discovery techniques to make personalised recommendations for information, products or services, during the visit from the prospect. Two major techniques used: 1. Item based collaborative filtering (IB-CF) 2. User based collaborative filtering (UB-CF) Copyright 2017. Netcore Solutions

New Age Omni-channel Recommendations REVENUE Predictive Personalization This is what most businesses currently do Behavioural Recommendations Single Message Mailing Field Insertion Rule Based Segmentation PERSONALISATION MATURITY Copyright 2017. Netcore Solutions Omni-channel Optimized

Item-based Recommendation Matrix Cross-sell Item Primary Item Being Browsed Copyright 2017. Netcore Solutions

Response Omni Channel Personalisation Prospective Customer Copyright 2017. Netcore Solutions Currently browsing on. History e Previous Transaction Recently browsed Social Media Likes -commerce Responseplatform Omni-channel recommendations

3 10/27/2020 Copyright 2018. Netcore Solutions. Use Cases 16

Hyper Personalised Recommendations on Mobile App User Frequency of Discounts availed Day of the week for purchases Preferred product category Frequency of Premium product purchases Time spent on website Average order value (Rs. ) Change in recommendations A 50% Weekends Electronics 60% 2 hours 10 K Display 1. 2 X products of higher end brands, on weekends B Never Weekdays Beauty Electronics 20% 15 minutes 5 K Most reviewed products only C 60% Weekdays Apparels None 3 hours 7 K Display usual brands t-shirts, Wednesdays Copyright 2017. Netcore Solutions

Amalgam of App & Website Browsing recommendations Transacts Higher value Transaction Adds to cart Adds both to cart Recommendations on Car Accessories Buys a car cover on website User downloads mobile app Copyright 2017. Netcore Solutions Browses for hydraulic jack for Browses hydraulic jack On website, browses majorly for On website, Carbrowses Perfumes majorly for Car Perfumes Recommendations on Perfumes and the hydraulic jack

Discounted on bundle purchases Non Response Omni-Channel Recommender Engine Implementation Browses website for 30 minutes Sent a 10% discount Add to cart Response Omni-Channel Recommender Engine Implementation Browses website for 30 minutes Sent a 15% discount Copyright 2017. Netcore Solutions Add to cart

Recommendations using Email & SMS Channel Data User A B C Copyright 2017. Netcore Solutions Product Category Derived Based on Email Opens Product Category Derived Based on Email Clicks Product Category Derived Based on SMS Clicks None

4 Best Practices Followed While Cross-selling 21 Copyright 2017. Netcore Solutions

Best practices to Upsell • Place upsells on the product page, and in cart abandon mailers • Promote most sold or most reviewed products • Make sure the upsells are not more than 25% costlier than the original product • Use customer personas to make relevant recommendations Copyright 2017. Netcore Solutions

Things to remember when crossselling • Always place cross-sell offers on the checkout page, and in the order confirmation emails and SMSes • Suggest items cheaper than the item in cart • Go for the easily forgotten items Copyright 2017. Netcore Solutions $8. 2 $5. 42

Caveats in Cross-selling Never start recommending before the customer has chosen a product Copyright 2017. Netcore Solutions Always show less than 5 recommendations, do not confuse the prospective customer

Cross-selling Actually Builds Best Friends Don’t be reckless, cover your new laptop! You will need cartridge for your new printer, won’t you? I think this purple shirt is much like your taste Copyright 2017. Netcore Solutions