Saturday 21 May 2011

Would you like fries with that?

In conjunction with my previous post on promoting trust (http://ollilainto.blogspot.com/2011/05/promoting-trust-online.html), I've taken the analysis a bit further and dwelled into how the previous companies I've analysed, manage in cross-selling. I've also added a few new examples of what I see as good and bad examples. Cross-selling items and services is vital for many companies in order to maximize sales and since the customer is already planning on buying something from you, why not offer them highly relevant and "necessary" items / services to bundle together with the original purchase. Let's see some recent examples of the do's and dont's of cross-selling. 

The Good:
In-application cross-selling is a great way for companies to get people to buy add-ons to their games and software that can be even used on several apps.
It also makes it easy for to the companies to promote their other games and software. 

Zynga is an example of company that not only uses in-app promotions but also allows users to get exclusive in-game items for cross-app use in games like Farmville, Cityville and Mafia Wars.

Godzilab's "StarDunk" is a free game but users can get in-app upgrades and game items if they download other Godzilab apps.

Tapulous’ TapTap Revenge series has just adopted the freemium model and the in-app promotions offer additional song packs and the company’s other games.

What is good about these examples is that the prices of the cross-sold items are close to the initial purchase price and they are highly related to the user (Appendix 1). 


RyanAir has pretty much perfected their website’s purchase funnel with cross-selling items and services. After choosing the your flight dates you get to the passenger details page (Appendix 2) which offers a myriad of additional things the passenger can purchase. Passengers have to pay extra for pretty much everything that is normally included in the price of a ticket by other airlines. These include priority boarding, travel insurance, SMS confirmation, RyanAir approved cabin bag, special equipment, special assistance and method of payment. After booking the flight, the customer is bombarded with hotel and car rental options. These advertisements are specific to the location and date you’re flying so they’re highly relevant. The pricing of the different items and services is also quite low so the hurdle to add them to your purchase isn’t too high.



The Bad:
H&M’s new website received a lot of criticism after its launch last September and for good reason. What is even more appalling is the cross-selling used by the company. I browsed the website for a while, going through only men’s clothes. I browsed through all the men’s categories and paid special attention to Jackets & Blazers. After choosing a blazer for purchase and proceeding to checkout the site offers me women’s tops and a dress! This is just ridiculously poor. The site even says “Something for you!” but there’s nothing in my browsing history to indicate any interest in women’s clothes (honestly). I guess it’s good that the items offered are significantly cheaper than what I was planning to purchase but they could not be less relevant and interesting to me. And I sure am not going to risk buying stuff like this to my girlfriend. It’s clear there’s not much optimization and tracking going on on the H&M website. What they should cross-sell to me? Nice shoes, pants, shirts or ties for men (Appendix 3).


And the Ugly:
Expedia.co.uk is trying to take advantage of cross-selling in their trip booking funnel by offering people the opportunity to purchase a travel insurance with their holiday. The relevancy is there and the price isn’t too bad either. The execution however is horrible. The whole site too “busy” and displays too much information whatever the customer is doing. With the travel insurance example they just make the purchasing of it look difficult unpleasant. What they should do is first of all redesign the whole site but if that’s not possible, then at least they should take out most of the information related to the travel insurance part. I would approach it like it was the thing I was actually selling. They should have few key bullet points visible and if customers decide to purchase the insurance, then they would receive all this information in the form of a popup window or something like this.

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