What Is Cross Selling?
What is cross selling?
A cross-selling strategy consists in offering complementary products during or after an initial purchase by a customer: an insurance or financial service when buying a car, for example. Cross-selling increases revenue by increasing the average basket value.
When finely tuned, a good cross-selling strategy can increase turnover by 15 to 25%. Above and beyond simply increasing revenue, your customers also benefit from this: thanks to your tailored purchase suggestions, they will feel understood and personally advised.
In a word, they feel unique!
So, how can such a cross-selling strategy be implemented?
Get to know your customers so you can talk to them better.
Knowing your customers means you will be able to offer them THE exact product they need when they need it. How can this be achieved?
This is the whole point of data. There is no point in simply accumulating data, you have to know how to analyse it to obtain relevant information.
It is critical for the brand to personalise every interaction it has with its customers. This is one of the keys to loyalty. Moreover, it is the starting point of a relevant cross-selling strategy.
Databases cover such vast amounts of data that it is impossible to memorise all this information and manage it manually. This is exactly why there are CRM solutions.
Once you have identified your customer (meaning by this not only the person’s name and contact details, but also his or her preferences and interests), you can make suggestions which perfectly match up to each customer’s needs.
Rethink your cross-selling offer based on the customer journey.
For a successful cross-selling strategy, it is important to structure your offer. It must be consistent with what the customer is looking for. Complementary products can be based on the moment of use of the product (before, during, after) or on the consumption universe.
For example, if a customer has been researching shoes and is about to buy the shoes of his or her dreams, you can offer cleaning products or insoles as additional sales, based on the moment of use of the product. If you want to use the consumer universe, you will suggest a matching handbag or the perfect outfit to match the shoes. Understanding the customer journey is critical for companies concerned about their Customer Relationship.
Cross-selling: one of the staples of sales.
Cross-selling is one of the key skills of a good salesperson.
By listening to their customers or by having suitable merchandising (both online and in store), your sales people can systematically offer customers the product or service that will be “the little something extra”: an extended warranty, alterations service, home delivery or a protective case for a pair of sunglasses.
Cross-selling and CRM are two elements that go hand-in-hand for boosting the sales of any company.
From a business point of view, they increase the average shopping basket, and therefore the turnover and margins. They also highlight specific products (new products, destocking, etc.).
From the consumers’ point of view, this makes them feel unique and privileged thanks to suggestions perceived as an added value to their purchase, which they can then choose to buy or not.
Now that you know what it means, find out how it fits into your CRM. Request a free demo now!
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