1. Boost your Ecommerce ROI
with Data-driven Cross-sell & Up-sell
Parisa Rai Data Scientist, Netcore Solutions
@RaiParisa

2. Data Scientist, Netcore Solutions
Speaker
Parisa Rai
Data Scientist, Netcore Solutions
Tech Savvy, Machine Learning, enthusiast, insights coupled with technology, one brand at a time
@RaiParisa

3. Things To Remember Tweet Question Slides & Recording
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Slides & Recording

4. Agenda Why Cross-sell? Understanding How to Cross-sell
Response Omni-channel Recommendation Engine
Best practices for Cross-selling and Up-selling
Few Use Cases Around Cross-sell
Best Practices Followed by the Industry

5. 1
Why Cross-sell?

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

7. Customer Retention
An average online store gets 43% revenue from repeat purchases, according to a leading e-commerce platform
Amazon was reported to have earned a whopping 35% of their revenue from cross-selling

8. Shoes + Extra shoe laces
Increases Average Order Value +
Sports Shoes
Sports Shoes of 1.2X price
Shoes + Extra shoe laces

9. 2nd Purchase: Anti-virus
Improves Customer Life Time Value
1st purchase: Laptop
2nd Purchase: Anti-virus
Probability of selling to an existing customer is 60-70% against selling to a new customer is 5-20%

10. 2
Understanding how to Cross-sell

11. Not always the right fit!
Simplest Techniques To Increase Sales
Next higher end model
Add the on-product copy
Not always the right fit! X X

12. 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:
Item based collaborative filtering (IB-CF)
User based collaborative filtering (UB-CF)

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

14. Item-based Recommendation Matrix
Cross-sell Item
Primary Item Being Browsed

15. Response Omni-channel recommendations
Response Omni Channel Personalisation
Currently browsing on e-commerce platform
Previous Transaction History
Prospective Customer
Response Omni-channel recommendations
Recently browsed Social Media Likes

16. 3
Use Cases

17. 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
10K
Display 1.2X products of higher end brands, on weekends B
Never
Weekdays
Beauty Electronics
20%
15 minutes 5K
Most reviewed products only C
Apparels
None
3 hours 7K
Display usual brands t-shirts, Wednesdays

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

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

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

21. 4
Best Practices Followed While Cross-selling

22. 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

23. Things to remember when cross-selling
$8.2
$5.42
Always place cross-sell offers on the checkout page, and in the order confirmation s and SMSes
Suggest items cheaper than the item in cart
Go for the easily forgotten items

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

25. 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

26. Experience the Netcore Smartech Demo, email us on“ “
Q/A
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