Cross selling is one of the best ways to increase total revenue. This proven practice can help retailers of all sizes and product types increase average sales performance and customer loyalty.
Cross selling is to successfully offer complementary goods on the same or subsequent orders. When asked if you want french fries with your burger, it's cross-selling. And it can do wonders, especially if the extra points have a higher profit margin.
Merchants are familiar with the traditional methods of cross selling, such as listing related items and accessories. Amazon, for example, offers at least three types of related articles on most of its product pages: "Often Purchased Together," "Sponsored Products Related to This Article," and "What Other Articles Do Customers Buy After Seeing This Article?"
Cross-selling of services may include installation or extended warranties.
The benefits of cross selling
Increased average order values. Consumers tend to buy more when offered logical extensions, especially when articles create a complete set.
Higher profit margins. You can turn sales of low-profit goods into high-profit orders. That's why most stores sell printers at or near cost. The real money comes from ink cartridges and paper.
Increased customer value for average life. Repeated customers trust your recommendations and are otherwise easier to sell to.
More packaged sales. Package sales of items that are usually purchased together help the store and its customers. Package offers can be data or directory driven. A mixture of both makes sense.
Packaged products do not necessarily have to be packaged offers. Best Buy presents on its website the most common Xbox accessories, which is the key for parents who are unfamiliar. However, there is no difference in price if the products are purchased together or separately.
Better customer experience. It is frustrating to buy a product and find out later that you need something that is not included. For example, a food sealing machine only comes with a few bags. Recommending extra deliveries can hinder customer satisfaction.
Solve a problem
The highest cross-selling conversion programs solve an expected problem. Think of common supplies and accessories.
|Product||Accessories and accessories|
|Printer||Ink cartridge, paper, special cable|
|Smartphone or tablet||Screen protector, case, keyboard, car charger, extra cable|
|Slow cooker||Carrying case, disposable lining, lid lock|
|basketball Hoop||Spray chalk, street paint, extra mesh|
|Backyard barbecue||Cover, utensil set, apron, spices|
However, it is possible to offer too many options, confusing shoppers to buy nothing. Amazon is guilty of this, but it relies on targeted emails to get consumers back. It is a practice that most small and medium-sized stores cannot afford. So keep the suggestions simple.
Getting started with cross-selling can seem daunting, but it's worth the time. Start by identifying the most logical additions to your store's best-selling items.
These extensions can be related products if an item does not need supplies or accessories. Analyze which products are often purchased together. Then cross sell each of them.