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Ulrich Jambrin-Rozier (860718Y339) // Cross-selling or “How you can grow up your e-business ?” // 09/01/06



 Seminar 2 : Cross-selling or “How you can grow up your e-business ?”


 optimize a business web-site (sales onlines), there are 3 key steps: (1) attract > (2) convert >
To
(3) loyalty.

Each step can be optimized by means of leverage. During the conversion, itʼs possible to optimize
this phase by several methods, among these methods, cross-selling is essential.

“Using a consumer behaviour-oriented approach to service product definition, services can be
more effectively marketed if strategies are designed around a fuller understanding of the
consumerʼs pre-purchasing bahaviours.”

                                     Page 314, Part 4, Strategic Marketing Applications for the Internet

The cross-selling has become a common practice of e-commerce to increase sales, but the
cross-selling can not be improvised. Set offers additional associations to identify relevant products
and choose when to make them
available to Internet users based on
business rules that continue to grow.

What is cross-selling ?
The cross-selling is the way to offer a
product in another product line but
has a connection with the first
product selected by the customer.

For example, when you buy painting,
and offering brushes and rollers.

 “The right product at the right person.”

The goal is to increase the average
basket of the consumer, and to retain
the consumer.



How to build an effective cross-selling ?
The analytical behaviour of customers satisfaction are not effective when working on a volume of
data too small to ensure the reliability of their statistical calculations.

Until today, we analyzed the pages viewed and the purchasing behaviour of visitors. With the tools
of Web Analytics, we arrive today to follow and register the shares of each user throughout its site
navigation. These tools are used to study the behaviour of Internet users in order to improve the
performance of online web site. They can see how visitors react to the contents of the site and
what actions lead to a higher conversion rate. They determine the income associated with each
item by navigation followed by the user to access it. Therefore, they need to optimize cross selling
and to analyze the relevance of the offers cross-selling with effeciency. It is also possible to build
associations of products made by purchasers of the Internet and the seller had never imagined.



                                                      1/2
Ulrich Jambrin-Rozier (860718Y339) // Cross-selling or “How you can grow up your e-business ?” // 09/01/06

Make correlations based on keywords is not enough because if this method is not well done, we
can have aberrant results. For instance, the association of japanese manga and the last Amélie
Nothomb book because the story takes place in Japan. For small web sites with not more than 500
references, updated two or three times a year, the choice of products to offer for sale in addition
can be done manually according to the criteria of the seller. This is common choice made by the
sellers that go on e-business.
 
However, when the website has over a thousand references with numerous updates several times
a year, it is better to switch to automatic. But, we must define the rules of association, verify and
test their relevance, which involves skills and time.

Study case : Amazon
Among the web sites of e-business using the cross-selling, Amazon is the one that optimize the
most this method.




For example, when Iʼm looking for the series quot;Stargatequot;, Amazon offers me a package, but also a
selection of products related to my product, this selection is based on my browsing history, but also
on the behaviour of other visitors. The homepage of Amazon is also completely customize and
redirects me on articles related to my previous navigation.

Conclusion

We are only at the beginning of this practice. We still have much to invent in this field. This new
practice requires very large computer infrastructure to capture information and automatically
generate custom content.

Benefits that can be accumulated to the customer include the efficiency and leverage that result
from using a single supplier for multiple products.

                                                       2/2

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English Ulrich Jambrin Rozier 2

  • 1. Ulrich Jambrin-Rozier (860718Y339) // Cross-selling or “How you can grow up your e-business ?” // 09/01/06 Seminar 2 : Cross-selling or “How you can grow up your e-business ?” optimize a business web-site (sales onlines), there are 3 key steps: (1) attract > (2) convert > To (3) loyalty. Each step can be optimized by means of leverage. During the conversion, itʼs possible to optimize this phase by several methods, among these methods, cross-selling is essential. “Using a consumer behaviour-oriented approach to service product definition, services can be more effectively marketed if strategies are designed around a fuller understanding of the consumerʼs pre-purchasing bahaviours.” Page 314, Part 4, Strategic Marketing Applications for the Internet The cross-selling has become a common practice of e-commerce to increase sales, but the cross-selling can not be improvised. Set offers additional associations to identify relevant products and choose when to make them available to Internet users based on business rules that continue to grow. What is cross-selling ? The cross-selling is the way to offer a product in another product line but has a connection with the first product selected by the customer. For example, when you buy painting, and offering brushes and rollers. “The right product at the right person.” The goal is to increase the average basket of the consumer, and to retain the consumer. How to build an effective cross-selling ? The analytical behaviour of customers satisfaction are not effective when working on a volume of data too small to ensure the reliability of their statistical calculations. Until today, we analyzed the pages viewed and the purchasing behaviour of visitors. With the tools of Web Analytics, we arrive today to follow and register the shares of each user throughout its site navigation. These tools are used to study the behaviour of Internet users in order to improve the performance of online web site. They can see how visitors react to the contents of the site and what actions lead to a higher conversion rate. They determine the income associated with each item by navigation followed by the user to access it. Therefore, they need to optimize cross selling and to analyze the relevance of the offers cross-selling with effeciency. It is also possible to build associations of products made by purchasers of the Internet and the seller had never imagined. 1/2
  • 2. Ulrich Jambrin-Rozier (860718Y339) // Cross-selling or “How you can grow up your e-business ?” // 09/01/06 Make correlations based on keywords is not enough because if this method is not well done, we can have aberrant results. For instance, the association of japanese manga and the last Amélie Nothomb book because the story takes place in Japan. For small web sites with not more than 500 references, updated two or three times a year, the choice of products to offer for sale in addition can be done manually according to the criteria of the seller. This is common choice made by the sellers that go on e-business. However, when the website has over a thousand references with numerous updates several times a year, it is better to switch to automatic. But, we must define the rules of association, verify and test their relevance, which involves skills and time. Study case : Amazon Among the web sites of e-business using the cross-selling, Amazon is the one that optimize the most this method. For example, when Iʼm looking for the series quot;Stargatequot;, Amazon offers me a package, but also a selection of products related to my product, this selection is based on my browsing history, but also on the behaviour of other visitors. The homepage of Amazon is also completely customize and redirects me on articles related to my previous navigation. Conclusion We are only at the beginning of this practice. We still have much to invent in this field. This new practice requires very large computer infrastructure to capture information and automatically generate custom content. Benefits that can be accumulated to the customer include the efficiency and leverage that result from using a single supplier for multiple products. 2/2