Do you want to learn about opening doors for additional business, how to sell without feeling hesitation, creating added values for your customers in a win-win situation? This article is for you.
What is Cross Selling?
Cross Selling involves selling those items which are connected or can be integrated with the product being sold.
When you cross-sell, you offer an additional product or service that complements or is related to the purchase already being made
Example: If you are selling a laptop you can offer a laptop bag and a mouse.
It is important to mention another concept, Upselling which is similar but not the same with Cross Selling. Note that these two concepts are normally mixed up.
Cross Selling VS Upselling
While cross-selling encourages client to buy other related products that complement their purchase
Upselling tries to make the client buy a different, more expensive version of the same product.
Advantages of Cross Selling
- Increase revenue
- Retain the customer
- Fulfil the customer requirements
- Increase the customer services and experiences
- Build a long term relationship
Cross Selling and Consumer Surplus
Consumer surplus is the monetary gain obtained by consumers because they are able to purchase a product for a price that is less than the highest price that they would be willing to pay
Cross-selling can help minimize the consumer surplus on products
That is to say, for those clients who haven’t paid the full amount that they were willing to spend, we offer them a possibility to spend the difference via cross-selling.
To sum up, cross-selling is basically about increasing the average checkout price by decreasing the consumer surplus. We try to make clients spend all the money they are willing to spend.
Cross Selling Techniques
Offer essential related products– Examples of this complementary selling are batteries or bulbs. Products that the client needs to buy for the main product to work.
Offer additional services- This type of cross-selling works really well with products that require installation. For many people, it is a real pain to have to program or set a device up and they won’t hesitate to pay for it if they were given the opportunity.
Provide bundle sales– This includes offering to sell products that complement each other at a discounted price e.g. shoes and socks. Buy 2 get 1 free.
Make data-driven suggestions– You can sell additional products or services by looking at a client’s previous interactions with you and purchases they have made. Analyzing what other customers bought with what your client is buying will help you know what to offer
Get the whole look- This system is really popular amongst online clothes shops or decoration. The product is shown with other products in order to create your desire to have the whole design or look.
Educate your clients- By educating clients; you can illustrate the benefits of each service to them. Once they see how each service can benefit their business, they will be more likely to agree to additional work.
Cross-selling is valuable for both you and the client.
Finding new customers is a difficult and expensive process so it’s important to capitalize on the sales you do make and continue selling to current customers.
One of the best ways to do this is through cross-selling. By taking a subtle approach, creating a positive experience, and timing the sale, you can squeeze the most out of your cross-selling strategy.
He graduated with B. Tech (Hons) in Remote Sensing and GIS from Federal University of Technology, Akure. Omodara is a certified GIS analyst from ESRI.
Co Founder of eLegit, a blacklist and look-up app; and IGeographic, a GIS startup.
At his leisure, he loves attending tech conferences and his major philosophy is Open Data, making important data easy to access and share.