Supermarkets from Beijing to Baltimore use check-out offers to increase their customer's basket size. And so should you, if you wish to maximise the revenue of your eCommerce business!
We've all experienced it. It's Tuesday and your turn to pick up the groceries.
You're almost done when you get to the check-out area. And what do you see?
Rows and rows of awfully tempting items... Chocolate bars, gossip magazines or whatever floats your boat. It's there.
And even though you normally shrug these temptations off, something on this particular day makes you place one of these items next to your milk and bacon.
Maybe you're in a good mood, maybe the queue is longer than usual, or maybe you just feel like eating chocolate.
The point is that while the decision to buy a chocolate bar probably makes little difference to you, it makes a huge difference to the economy of the Supermarket.
Remember that countless shoppers will fall for this temptation every day, even though they didn't walk into the Supermarket planning to buy a Snickers or the latest issue of Star (BTW, what IS Brad thinking!?).
And the same goes for your eCommerce store.
7% of the average onsite revenue of eCommerce sites is generated through check-out offers placed on the customer's basket page.
No, John Boehner. No. But thank you for asking.
Inserting personal product recommendations on your basket page gives you one last, golden opportunity to increase your customer's order value, which is good news for your bottom line...
But to make it a little more tangible, I'd like to give you 3 pointers that will help you design profitable check-out offers for your eCommerce store:
1. Qualified recommendations
First of all, the check-out offers must complement all the products in your customer's basket.
So, if your customer has decided to buy a dress and a shirt, it would make sense to recommend her a selection of scarfs that complete the look of those items.
By making sure that the check-out offers match the picks already made by your customer, you provide a better service for that customer and improve your chances of increasing the order value.
2. Cheaper is better
Secondly, the check-offers should be cheap so that your customer is comfortable buying them on an impulse.
You rarely see your Supermarket selling expensive steak knives or barbeque grills near the exit. It's just too big a recommendation to spring on a customer so close to the register.
On the other hand, buying a set of sports socks for $10 or a gift certificate, is a much easier decision to make (even without your better half present).
3.Create an incentive
Finally, you must consider how to give your customer a particularly good reason for taking advantage of the check-out offer.
One of the most effective ways to achieve this is by recommending relevant products that will qualify your customer's order for free shipping.
This strategy is so effective, because it truly makes a lot of sense for your customer to buy one or two extra products to get rid of potential shipping costs.
Because we all hate shipping costs. It's a fact.
So, no matter whether we are talking Snickers and glossy magazines in a Supermarket or sports socks on an eCommerce site, check-out offers is a very effective way to increase your average order value.
How you use product recommendations and sales techniques to present these check-out offers can furthermore have a great impact on the effect of these offers. That is why you need to make sure that:
1. Your check-out offers complement all the products in your customer's basket.
2. Your check-out offers are cheap and thereby harder to resist.
3. Your check-out offers are presented in a way that gives your customer incentive to buy them.
Following these 3 pointers will take you a long way, but the most important pointer is to always design your check-out offers according to your style of business, webshop layout and line of products.