One of the key business intelligence metrics is customer lifetime value, which is the amount you can earn as a result of working with a specific customer. You can increase it by influencing three components: the duration and frequency of purchases, as well as the average check amount. Today we will talk about the latest indicator. The traditional methods of increasing it are cross-sell and upsell.
They work great on their own, but their true potential is revealed when combined with modern technologies, including intelligent chatbots and customer relationship management (CRM) systems. We will tell you exactly how these software solutions can increase the average check amount.
Upselling with chatbots
Upselling is a marketing technique that motivates customers to order more identical products or choose a more expensive modification of the same product. It increases income and profits without forcing businesses to invest in expanding their product range. Chatbots are ideal for upselling. They can be used in the following ways:
1. Offer an upgrade
If a customer deliberately chooses a budget option, they don't hesitate. After the transaction is completed, the visitor closes the site or goes to another section. If he doubts and studies all available options, you can offer him a more expensive and high-quality product, for example, a luxury hotel room, a smartphone with more memory, or an extended car package.
It is very important to catch the right moment when a customer rushes between catalog pages or returns to the product description after the transaction is completed. It is difficult for a sales specialist to track the actions of a website visitor, but this will not be a problem for a chatbot. By combining it with a user behavior tracker, you can open a dialog or show a pop-up window at exactly the right second. This technique significantly increases the conversion rate and allows you to sell at no extra cost.
2. Collect the perfect products and kits
Quite often, customers choose the basic option just because they don't know about the existence of advanced product variations. As a result, they remain unsatisfied with the product, which negatively affects all components of lifetime value. Artificial intelligence can work on the principle of a designer, collecting ideal proposals for them.
AI studies the behavior of a site visitor by remembering the sections and pages they have studied. It estimates how much time a person spends in a particular section and where the mouse cursor is most often located. Thanks to this, the chatbot can offer a product with an ideal price and functionality. For example, in SaaS, this could be a personalized subscription to a service that differs from standard pricing plans. An example from retail is to individually equip a smartphone with a case, protective glass and other accessories.
A chatbot can not only demonstrate an offer, but also highlight its benefits. To do this, it is worth making a short comparison between prices and functionality. A good solution would be to add the most expensive version of the product to this comparison, thereby emphasizing that you are making the best offer, and not just pumping the maximum amount out of the customer.
3. Provide support
Another reason to avoid expensive products is their complexity. For example, a buyer understands that he definitely needs car insurance, but he does not know how it works. Under such conditions, he will choose the cheapest option, as he simply cannot appreciate all the advantages of the premium version.
An intelligent chatbot will help dispel doubts. He will offer his help in the form of a simple dialog box. By agreeing to start a conversation, the client will receive detailed advice in a language they can understand. Thanks to natural speech recognition technology, he can ask questions just like when talking to a company employee.
4. Encourage decision making
In marketing, there is such a thing as choice architecture. It involves accompanying the client on their conversion journey. If a customer deviates from the intended route, the marketer slightly pushes him, using various means of motivation.
It is irrational to accompany each client; it is better to entrust this work to a chatbot. It will perfectly cope with the following tasks:
- will give a link to a comparison table when the buyer will rush between different product options;
- will report a discount on the premium version and emphasize its favorable price when studying the catalog;
- will demonstrate the limited nature of the offer and show that other users are interested in the product if the visitor stays on the page for a long time;
- will highlight the key advantages when carefully reading the product configuration or characteristics.
Cross-selling with chatbots
Cross-selling is a motivation for customers to buy a product that complements or extends the functions of the main one. They are considered slightly less profitable, as you need to maintain a larger range. Nevertheless, this is an effective method of increasing the average check amount. Chatbots allow you to use cross-selling in the following ways:
1. Contextual recommendations
It's as simple as possible: offer customers related products using a chatbot. For example, if he orders a table from a furniture store, show him chairs from the same collection, non-slip leg pads, tablecloths, and high-quality tableware. A good idea is to provide a button to order the entire set in one click and allow you to tick the right products with checkboxes.
Contextual recommendations can be based not only on the current page, but also on sections that the visitor has studied before. For example, if he has also looked at beds and desks before, remind him of this by choosing items in the same style or promotional models.
2. Exclusive deals
Personalization always increases conversion rates, and working with a regular customer is better for a company than finding new customers. By combining these two ideas, you will get an excellent solution for improving financial results — giving a discount on the next item on the same check is more profitable than waiting for the next purchase.
In this scenario, the chatbot would work best when paired with a CRM. This platform will help you choose an individual discount amount, taking into account the customer's value for the company, the likelihood of him leaving for a competing firm, and the product's margins. Another useful tool is artificial intelligence. He will calculate the optimal price at which you will get the most profit and write an attractive call to action.
3. Interactive dialogue
Sometimes a marketer's task is to help customers understand or clarify their needs. This is why most offline stores have consultants. They provide assistance using their knowledge, experience and expertise. Chatbots can perform the same function online.
For example, the program can ask clarifying questions:
- Which room are you looking for furniture for?
- What colors do you like?
- What is the area of the room?
- What purchase budget do you expect?
By launching such an interactive dialogue at the initial stage, you can create a set of products at a special price. However, it can also be started after the initial transaction is complete to offer additional items.
4. Loyalty program integration
Many companies provide regular customers with rewards in the form of bonuses. Unfortunately, these points often go unused. This situation does not benefit either the buyer or the business. However, chatbots will help stimulate purchases for bonuses.
One way to increase the average check is to remind you that you have points on your loyalty program account when you go to the cart. After finding an additional benefit, the customer can return to the catalog and add additional products to the shopping list. This offer will be especially effective if bonuses have a limited validity period.
A chatbot is the best assistant to a marketer
Chatbots, especially AI-based programs, are ideal for launching upsell and cross-selling campaigns. However, their scope of application is not limited to this. You can use relevant services to inform potential customers about new products and current promotions, remind you of exclusive offers, receive complaints and advise on product features.
Do you want to automate your business using chatbots? Talk to StartDuck experts. We will find the perfect solutions for use in sales, marketing and customer support. Our portfolio includes many projects implemented in e-commerce, IT, SaaS, consulting and other industries. We will select the best platforms and help you integrate them seamlessly into your workflows.
