Kevin Daly

Kevin Daly

Director - First Party Data

Can AI improve your eCommerce cross-selling success?

13 January 2022

Cross-selling and up-selling are two commercial techniques that are becoming increasingly popular among businesses when trying to increase their profitability.

These two commercial strategies seek to increase the average value of the purchase ticket and, consequently, raise business profits.

When applying these techniques, keep in mind that the essence of cross-selling and up-selling is not  simply to offer as many products as possible. We must offer the right products to the right customers: products that meet their needs and provide them with value.

Let’s imagine you go on Amazon to buy a coffee maker. Amazon might recommend coffee filters and beans to go along with it.

But, how do you know what the best product to recommend is? How can you determine which of your customers should you recommend it to? Should you recommend a certain product or service, or would it be a turn-off? This is where AI comes into play.

Achieving Relevance

To recommend the right product to the right person, you must start by analyzing quality data about your customers. You can start with characteristics of your customer traffic, for example:

  • number of products viewed
  • frequency of visits
  • product ratings

Using these characteristics, machine learning algorithms (AI) are activated and parameterized. AI activation is possible in the different widgets of the site. It can be located in different parts of the web – thus accompanying the user through the entire purchase process: on the home page, the categories page, or in product sheets.

These algorithms can be governed by customizable rules (for example, location, new or recurring customer, registered or not, etc.).

Any company can take advantage of AI applied to cross-selling to increase sales revenue and improve customer satisfaction. In B2B businesses, you can leverage AI to increase Customer Lifetime Value (CLV) through deeper integration in a customer’s business. As an example, Jeff Bezos revealed that cross-selling helped bring in an incredible 35% of sales. Additionally, 80% of Netflix views come from the service recommendations. AI cross-selling and up-selling can help improve practically any online sales model.

Now what??

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