What is Cross selling - Definition
Cross-selling is one of the sales techniques that involves offering customers related products or services based on their current purchase. It involves recommending additional products or services that complement or are related to their initial choice. For example, a customer buying a camera may be prompted to purchase additional memory cards or a tripod. Cross-selling allows a company to improve the efficiency of its own sales team, increase the average order value, and build better customer relationships.
How Does Cross-selling Work?
Cross-selling can be offered to customers at different stages of the sales process. It can be during product browsing, before or after the purchase. However, the most commonly used technique is to offer products or services related to the customer purchasing the last transaction. This means that customers see available products that complement their last purchase while it's still fresh in their minds.
What Are The Benefits of Cross-selling?
Cross-selling helps companies increase the value of the shopping cart, increase sales, and increased customer lifetime value. Through this sales technique, customers have easy access to products and services that complement their last purchase, which might increase their satisfaction. Appropriate use of Cross-selling can allow companies to sell more and, at the same time, help existing customers find more suitable products to their needs.
How to effectively use Cross-selling for customer satisfaction?
To effectively use the marketing strategy of Cross-selling, it's necessary to understand the customers' preferences and only offer valuable additional products. Thus, it's essential to adjust the offer to the individual needs of each customer and direct it to specific segments of the target group. Proper use of Cross-selling can increase a company's profits and have a positive impact on customer satisfaction.
Examples of cross-selling strategy.
They vary depending on the types of products or services being offered. Here are a few cross-selling examples and cross-selling techniques.
- A customer who buys a computer is offered a printer and ink cartridges that are compatible with the computer.
- A coffee shop that offers muffins and cookies at the checkout to customers who purchase coffee.
- An online retailer that recommends other related products, such as shoes to a customer who purchased a dress.
- A car dealership that offers additional features or options to customers who purchase a car, such as a sunroof or heated seats.
- A fast-food restaurant suggests adding a drink or dessert to a customer's order.
In all these examples, the company is offering customers additional related products or services that complement or enhance their customer journey. This technique helps to increase sales, build customer loyalty, and improve the overall customer experience.