Latest / The DTC Marketing Podcast with Fexingo: Direct-to-Consumer Brands, Shopify, and E-Commerce Growth / How DTC Brands Use Cross-Selling to Lift Average Order Value
Transcript
- Lucas: You know, Luna, there is a number that I keep coming back to when I look at DTC brands that are actually growing in 2026, and it's not customer acquisition cost, and it's not conversion rate. It's average order value. Luna: Average order value. Because if you can get people to buy a little more each time they visit, you're basically getting more revenue without spending more on ads. Lucas: Exactly. And the smartest way to do that, in my opinion, is through cross-selling. Not upselling, not begging people to buy the premium version, but actually pairing products that naturally go together. And there is real psychology behind how that works. Lucas: Quick honest thing. We keep this show going without ads, and that's because a handful of listeners chip in monthly through buy me a coffee dot com slash fexingo. It's not a big ask, but it literally funds our recording setup and the time we put into researching each episode. Luna: Yeah, and if these conversations have helped you think differently about your own marketing, that's the kind of thing that keeps us motivated to keep making them. Lucas: So back to that average order value. The classic mistake is to treat cross-selling like a scattergun. You show people a bunch of random products and hope something sticks. Luna: Right, and that just feels like a pop-up shop in a bad way. It can actually hurt the experience. Lucas: So what does good cross-selling look like? I think the best example I've seen recently is a specialty coffee roaster. They sell bags of beans, but on the product page, they don't just show you other beans. They show you a pour-over kit or a grinder. And the copy is really specific: 'For this light roast, we recommend a coarser grind, and this grinder gives you that.' That's not a random suggestion, that's a solution. Luna: That's a great point. They're solving a problem the customer might not even know they have. And it feels like advice, not a sales pitch. Lucas: And that's the key distinction. Upselling is 'buy the bigger size.' Cross-selling is 'here's what works better with what you're already getting.' It's complementary, not competitive. Luna: So what about the data side? How do you know what to cross-sell to whom? Lucas: You start with purchase history. If you see that customers who buy a certain type of skincare serum also tend to buy a specific moisturizer within the next two weeks, that's a signal. You can put that pairing right on the product page or in the cart. Luna: And you can even use that in your post-purchase email. Like, 'Hey, you bought this cleanser, here's the toner that people pair with it.' Lucas: Yeah, that's a great touchpoint. And it's way less annoying than a pop-up the moment they land on your site. There's this skincare startup I was looking at, they do exactly that. They have a post-purchase flow that asks, 'What's your skin concern?' and then based on that answer, they recommend a companion product. They told me their average order value went up about 18 percent in the first three months. Luna: Eighteen percent, that's substantial. And it's probably not just from the cross-sell itself, but from the trust it builds. The brand feels more thoughtful. Lucas: Exactly. And that's where the long-term value comes in. People who feel like you understand their needs are more likely to come back. It's a retention play disguised as a revenue play. Luna: So what's the line between smart cross-selling and just being pushy? I feel like there's a fine line. Lucas: There is. And I think it comes down to relevance. If you're showing me a matching yoga mat when I buy a yoga block, that's relevant. If you're showing me a scented candle, that's just noise. The moment the suggestion feels random, you've lost trust. Luna: And trust is the whole game, especially for DTC brands. You don't have a physical store to win people over. Lucas: Right. So another thing I've seen work is using the cart page strategically. Not to blast people with upsells, but to gently remind them of something they've been eyeing. Like, if they have a pair of running shoes in their cart, you might show them a pair of moisture-wicking socks that they viewed earlier. That's a natural fit. Luna: And it's a lot more effective than a generic 'You might also like' carousel that looks like an afterthought. Lucas: One thing I want to caution against is the 'cross-sell creep.' That's when you start bundling things that don't really go together just to increase the ticket. Like, your favorite clothing brand suddenly trying to sell you a smartwatch with every pair of jeans. Luna: Yeah, and that's when people start to feel like you're just trying to squeeze them. It backfires. Lucas: So how do you test this? I like the idea of running simple experiments. For two weeks, show a specific cross-sell on your product page and see if it lifts average order value without hurting conversion. If it does, keep it. If not, kill it. It's not that complicated. Luna: And there are tools for that now, right? Shopify apps that do product recommendations based on purchase history. Lucas: Yeah, there are a bunch. But the data is only as good as the logic behind it. You still need to think about what makes sense for your customer. The algorithm can tell you patterns, but you have to decide if those patterns are meaningful. Luna: So what's your one piece of advice for a brand that's just starting to think about cross-selling? Lucas: Start with your best customers. Look at what they buy together. That's your goldmine. If you can identify that one pairing that comes up again and again, you already have your first cross-sell. Then you just make it easy for people to find it. Luna: That makes sense. It's not about flashy tactics, it's about understanding your customers and being helpful. Lucas: And that's really what this all boils down to. Cross-selling is just a way to be more useful to the people who already trust you. The revenue is a by-product. Luna: Well said. So next time you're in the checkout flow, think about what you can offer that truly adds value. Lucas: And if you want to dig deeper into how to map out your customer's journey to find those natural pairings, we'll have more on that in a future episode. For now, just remember: relevance beats volume. Luna: Thanks for listening, and we'll see you next time.