In retail, there is a sales tactic known as suggestive selling. In essence, suggestive selling is basically an attempt by a sales person to sell the customer an accessory for a product that they are already buying. So if you walk into Best Buy to purchase a phone, the sales person may suggest a car charger to go along with the phone. This tactic has now spread across all industries. Dropbox offers Packrat, which gives users unlimited deletion recovery. It’s an add-on to their core product. In the SaaS world these add-ons are great way to get expansion revenue out of each customer.
For E-commerce companies, suggested selling is a tried and true tactic for increasing average order size. You’ll notice Amazon relies heavily on suggested selling. You see it on their product pages:
They also place them on their shopping cart page. Here we see them offering four products that are similar to the one in the cart. We also see them offering their Amazon store card:
Amazon does this for a reason – it works!
And it’s not just Amazon that has had success with these personalized recommendations. It’s been shown to work across all E-commerce sectors. Today’s infographic is from Baynote and it shows us the importance of personalization and relevancy in E-commerce stores.
About the Author: Zach Bulygo (Twitter) is a Content Writer for Kissmetrics.