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Cross-selling is a tool that salespeople use when they want to sell more goods. by suggesting additional items to a customer who’s already committed to making a purchase. For example, a person buys a coat online, and is offered a hat, gloves, shoes and a bag. Thus, a client ends up with a total outfit with time saved, and a seller earns more.
The cross-sell technique works well where expensive products with cheap accessories or add-ons are sold. For example, a car is an expensive product, but it can be improved with additional details: substitute air conditioning with climate control, handles with automatic window lifters and install an audio system with better sound.
Most importantly, these additional items have to be of need for a customer.
What cross-selling is and how to use it
How cross-selling works
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Sellers from different areas resort to this sales technique. For example, a customer shops online, looks at a product and an offer about other goods appears under or next to it: "You may also like". A person looks at them and, if something is suitable, adds it to the cart.
When a salesperson offers accessories in a hardware store that are necessary for the operation of the device, it is also cross-selling.
The store offers to buy accessories for a laptop
Now let us look at how it works in an online clothing store. When a customer chooses an item, the system offers similar clothes and ones that are bought most often with this piece.
A customer buys a laptop. A shop assistant offers a plug adapter that is not included or a case, protective glass and a power bank for the laptop. Sometimes additional items are sold at a discount in order to attract the attention of clients and make revenue — it is also an example of cross-selling.
In online hardware stores, the principle of cross-selling sales also works.
The store offers discounted items to sell out old collections quickly.
Cross-selling can also be applied to selling services. For example, an online school offers eight courses in one block. The school gives a 50 per cent discount on this block. Such an offer looks useful and profitable.
A course is bought on the website, and can be studied there.
In a takeaway cafe, a seller offers to add sauce to French fries or syrup to ice cream. It is an additional option and is not included in the price of a meal.
What cross-selling can help you with
Cross-selling helps to increase sales and prevent goods from lying around.
For example, there are phone cases in a store, and as soon as a customer chooses a phone, a shop assistant offers a case. If you add a small discount, goods will not be stored in stock for too long. It's the same with courses or training programs. If a client buys a course, they are immediately offered another one or two at a discount.
The main condition is that a customer should be satisfied with an additional purchase. They should be offered high-quality items and not something that no one needs for a long time and clutters up the warehouse.
How сross-selling differs from upselling
The cross-selling sales technique is similar to upselling. In cross-selling, a seller complements a purchase with related products, while in upselling a client is offered the best version of what they have chosen.
A customer has chosen a laptop that was released two years ago, and a salesperson says that there is an improved version of it. Then they demonstrate the pros of this model and explain why it costs more. It is upselling.
When we cross-sell, we will offer a protective glass, a case, a power bank to this laptop and part of the goods will be discounted.
In a physical store, a shop assistant will approach a customer and offer accessories or they will be displayed at checkout. But there may not be the needed product or brand.
How best to apply cross-selling
Before applying cross-selling, remember, good upselling always leaves the customer feeling like they won. In a hardware store, it is better to offer necessary add-ons: accessories for devices, without which they will not function, and goods that are not included in the kit. It would be great if a shop assistant shows a client how to assemble a purchased item, for example, a TV and tells them about all the functions.
One can offer related products, thus, a customer will not need to spend time searching for them. If a customer takes several items, then it is better to give a discount, it can be even a permanent one, on subsequent purchases in this store.