Cross-selling is a sales technique, where the seller encourages the customer to spend more by recommending an additional product that’s related to what’s being bought already. The objective of cross-selling can be either to increase the income derived from the client or to protect the relationship with the client or clients. For example, Amazon reportedly attributes as much as 35 percent of its sales to cross-selling through its “customers who bought this item also bought” and “frequently bought together” options on every product page.
Benefits of Cross-Selling?
- Cross-selling adds more to the revenue: Cross-selling increases the sales by making customers buy more than they thought they would. It also increases the lifetime value of the customers by transforming not profitable customers into profitable customers and profitable customers to very profitable customers.
- Cross-selling enhances customer experience: Businesses use cross-selling strategies to educate customers about related products. This enhances the customer experience as they get to know about more products that could be useful to them.
- Cross-selling isn’t considered annoying: Unlike many other sales strategies, cross-selling is considered as a mere suggestion and not an annoying and deceiving strategy. The strategy is even looked upon by the customer relationship managers to build good relationships with the customers.
Difference between Cross-Selling and Upselling?
- Upselling is the practice of encouraging customers to trade up to a better version of what’s being purchased while cross-selling invites customers to buy related or complementary items. Upselling and cross-selling are mutually beneficial when done properly, providing maximum value to customers and increasing revenue without the recurring cost of many marketing channels.
Some common Cross-Selling techniques:
- Before Sale: Recommending bundled product deals and offers while the customer is still browsing or exploring for an appropriate product to buy. Ecommerce websites have recommendations and suggestions in the form of ‘most popular deals’, ‘best offer’, ‘just for you offers’ etc to increase the likeability of cross-sales.
- During Sale: Recommend the accessory required for proper operation or use of the product purchased, such as a power cord for a computer printer that doesn’t include one in the box.
- Offer a discounted price on a bundled product offer to encourage immediate purchase with a temporary price saving.
- After-Sale: Personalized emails, SMS, and calls to tempt customers to choose a related product.