The most frequent question we get from farmers and food hub managers is how can I increase my order size to meet my minimum order requirement?
No matter the industry you’re in, the Harvard Business Review found that acquiring a new customer is 5-25x times more expensive than retaining an existing one. Make the most out of the customers you already have! To do so, there are two very important words to know: upselling and cross-selling.
Upselling is a sales technique where a seller encourages a customer to purchase a more expensive, upgraded, or premium version of a product or service they are already considering or have purchased. The goal of upselling is to increase the value of the sale by offering a higher-priced item that provides additional features, benefits, or quality compared to the original product.
For example, encouraging customers to buy a larger pack of meat instead of a smaller one or buying a full CSA (Community Supported Agriculture) share, versus a half share.
Cross-selling is a sales technique where a seller suggests complementary or related products to a customer based on their current purchase or browsing history. The goal of cross-selling is to increase the overall value of the sale by encouraging the customer to buy additional items that enhance or complement their original purchase.
For example, a cross-sale opportunity could be herbs that go well with a particular meat or fruit that pairs well with yogurt. Cross-selling often can get confused with upselling, so it’s important to understand the differences.
While both cross-selling and upselling aim to increase your farm’s average order size, there are some key differences:
The right mix of upselling and cross-selling depends on your unique business model and product offerings. Many restaurants, food and farm businesses can benefit from a combination of the two strategies.
Here are some more examples of specific ways farms and local food businesses can implement cross-selling and upselling:
The key is making relevant suggestions based on the customer's initial selections and framing the upsell or cross-sell in terms of the value it provides - whether that's convenience, cost savings per unit, or an enhanced culinary experience. With a thoughtful approach, cross-selling and upselling can significantly boost revenue from your existing customer base.
Here are the six most important things to remember when it comes to improving cross-selling and upselling for your business:
Cross-selling vs upselling, which is best for your business? Depending on your business model, upselling or cross-selling may work better for your business. Upselling can be very useful for businesses that have different pack sizes, for example, meat producers. It can also be effective for CSAs that offer different share sizes. Cross-selling works great for food hubs or producers that offer a large variety of products. You can easily suggest pairings or recipes that can be made with the products you sell.
Depending on which method you choose, you may have a different sales approach. For upselling, you may choose to include value. For cross-selling, you may focus on promoting specific product pairings based on seasonality or an upcoming holiday.
Upselling and cross-selling can both be done pre- or post-sale:
The benefits of pre-sale are that you can increase the order size before purchase, but it can quickly become a deterrent if you come on too strong. Cross- or upselling post-sale means you are not affecting the initial sale, but you can encourage your customers to purchase again.
Also, the choice between pre- or post-sale is dependent on whether you’re selling farm products online or in-person. A pre-sale cross- or upsell may be easy to achieve when selling at the market or farms store but can be harder to succeed online. When selling online, sending discounts or farm marketing emails after their first purchase can be a great way to cross- or upsell post-sale.
The more personalized, the better! 59% of shoppers who experienced personalization during their shopping said it influenced their purchase decision. When using cross-selling, be strategic about what you’re suggesting. The more personalized you can get, the better!
Also, be sure to steer clear of suggesting products that increase their (current or past) order by more than 25%. You want to be able to capture their attention without implying that they should spend outside of their budget.
We’re all suckers for a good deal. If sizing up is a better price per pound, be sure to lead with that! Customers want to ensure they are getting the most bang for their buck. Include price per pound or value for money information in the food product description or label so that the information is easy to find for the customer. The more information you give upfront, the better!
There are many ways to promote upselling and cross-selling to your customers. If you have a farm website, you could create product listings with bundled items offered at a discounted price to encourage customers to purchase more. For example, you could offer a "Farm Fresh Breakfast Bundle" that includes a dozen eggs, a pound of bacon, a loaf of artisan bread, and a jar of homemade jam at a lower price than if purchased separately.
Another tactic is to provide incentives for larger orders, such as offering free shipping or a complimentary gift for purchases over a certain threshold. This not only encourages customers to spend more but also helps to build customer loyalty and satisfaction.
Make the most of your farm website design by showcasing related products or accessories on individual product pages. This makes it simple for customers to discover and add these additional items to their cart, thereby boosting your cross-selling efforts.
Consider implementing a loyalty program that rewards customers for repeat purchases or referrals, as this can foster long-term customer relationships and encourage additional sales. Personalized email marketing campaigns that recommend products based on a customer's past purchases can also be highly effective in driving upselling and cross-selling. For maximum impact, use our professional farm newsletter writing services to create compelling content that encourages upselling and cross-selling.
To maximize the impact of your marketing efforts, consider utilizing professional farm newsletter writing services to create compelling content that actively promotes upselling and cross-selling. Well-crafted newsletters can highlight special offers, showcase complementary products, and provide valuable information that keeps your farm top-of-mind for customers.
Lastly, leverage the power of social proof by prominently displaying customer reviews and testimonials that emphasize the value of purchasing larger quantities or complementary products. Positive feedback from satisfied customers instills confidence in potential buyers, making them more likely to invest in additional or higher-priced items from your farm.
Always be mindful of how often you’re “selling” your customers. Sending too many marketing emails can deter a customer from shopping with you again. Find your marketing “sweet spot” to ensure you are still reaching your customer base and not ending up in their spam folder.
Everyone is looking for more ways to increase their average order size. For more ways to include upselling and cross-selling into your sales strategy, check out below!
➡️ Make more money from your existing customer base: Download our 9 Ways to Increase Your Farm's Average Order guide!
Running your business is hard work. We want to help make it a little bit easier. Used by all types of local food suppliers, Local Line helps you sell online, communicate with customers, and manage your business all in one place.
