Maximize Value from Your Current Customers with Display Marketing
October 10, 2023
Simply put, it’s easiest to win revenue from where you’re already earning it. Ask any seller or marketer, the cost and win percentage of growing your existing customer base is always more effective than acquiring a net new client. Cross-selling and upselling represent two powerful strategies for increasing the lifetime value of these existing customers. Display marketing, a versatile and visually engaging approach, can play a pivotal role in successfully executing these strategies. In this article, we will explore how display marketing can help businesses cross-sell and upsell to their existing customer base.
Understanding Cross-Selling and Upselling
Before delving into the role of display marketing, it’s important to understand the concepts of cross-selling and upselling:
- Cross-selling: Cross-selling involves offering customers related or complementary products or services to what they have already purchased. The aim is to provide additional value and enhance the customer’s experience. For instance, a company selling smartphones might cross-sell phone accessories such as cases, screen protectors, or headphones.
- Upselling: Upselling entails encouraging customers to upgrade to a higher-priced version of the product or service they are considering. This can be accomplished by highlighting the benefits of the premium offering, such as additional features, enhanced performance, or greater value. For example, a software company might promote a more advanced version of its product to customers.
How Display Marketing Facilitates Cross-Selling and Upselling
Display marketing, which includes banner ads, video ads, and other visual content, can be a game-changer for businesses looking to boost cross-selling and upselling opportunities:
Visual Appeal: Display ads are highly visual, making them a perfect medium for showcasing related products or upsell options. Using captivating images or videos can immediately grab the viewer’s attention and pique their interest in additional offerings.
Segmentation and Targeting: Display marketing allows for precise audience targeting. By analyzing customer data and behavior, businesses can tailor their ads to specific customer segments, promoting products or services that align with each segment’s preferences and needs. For instance, an e-commerce platform can display ads for winter clothing to customers who have previously purchased winter coats.
Retargeting: Display marketing enables retargeting, a powerful technique that shows ads to users who have previously visited your website or interacted with your brand. These ads can remind customers of products they viewed or abandoned in their shopping carts, making them more likely to complete the purchase or consider related products.
Personalization: Personalized display ads, based on customer preferences and purchase history, can effectively cross-sell and upsell. Recommending products related to what the customer has previously bought or viewed can increase the chances of conversion.
Educational Content: Display ads can be used to educate customers about the benefits of upgrading to a higher-priced product, subscribing to a premium service or showcasing how pairing multiple products/services together can increase success rates. Informative videos or infographics can highlight the added value and functionality, making the upsell proposition more compelling.
A/B Testing: Display marketing allows for A/B testing of different ad creatives, messages, and strategies. This iterative approach helps businesses refine their cross-selling and upselling tactics, optimizing their campaigns for better results over time.
Timing and Context: Display ads can be strategically timed to coincide with specific customer touchpoints, such as after a successful purchase or during a customer’s browsing session. The contextual relevance enhances the chances of cross-selling or upselling success.
Display marketing offers a wealth of opportunities for businesses to cross-sell and upsell to their existing customer base. By leveraging the visual appeal of display ads, along with precise targeting, personalization, and educational content, companies can boost their revenue, enhance customer satisfaction, and strengthen long-term relationships with their clientele. As the digital landscape continues to evolve, display marketing remains a valuable tool for driving growth and maximizing the potential of every customer interaction.
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