Cross-selling has happened to you many times in your life, even if you weren’t informed of it. Cross-selling occurs when you look at an item on Amazon and find products listed below “Customers also bought.” You’ve also encountered it if you’ve ever had a McDonald’s cashier inquire, “Would you like fries with that?” On the other hand, Cross-selling isn’t just about persuading clients to buy your higher-profit-margin things. It is also about creating an excellent shopping experience for customers by assisting them in discovering other products they might want or need. ECommerce cross-selling is a powerful, profit-boosting strategy for any online retailer.
What is Cross-selling?
Cross-selling is a sales technique that enables consumers to spend more money by proposing a product that is related to the one they are presently buying.
Cross-selling accounts for up to 35 percent of Amazon’s sales, thanks to the “customers who bought this item also bought” and “often bought together” choices on every product page. This method helps a business persuade customers to purchase a complementary – or necessary – item.
Cross-selling examples include:
- When purchasing a digital camera, an electronics store salesperson suggested that the buyer also purchase a memory card.
- “Would you like fries with that?” a cashier at a fast-food restaurant asks a customer.
- The customer is prompted to add a popular related product or a required item not included in the purchased product during the checkout process on an eCommerce site.
Advantages of Cross-selling
Assists Customers in Feeling Understood
Cross-selling done right makes clients feel understood. For example, assume you’re a retailer showing a customer a nice pair of shoes to match their new jeans. They will grow a stronger bond with you and your brand if you’re on target, as they’ll feel like you genuinely understand their personality and connect on a deeper level.
Promotes Brand Loyalty
Customers that have a strong emotional attachment to your brand are more likely to stay with you in the long run. These clients may even become brand ambassadors, spreading the word about your company to their friends and family.
Customers will grow dedicated to your brand if you offer not just one but numerous products that they enjoy, saving you money by lowering churn rates.
Earnings are increased
Of course, a customer who buys numerous products or services will help to enhance your revenue more than a consumer who buys only one product. However, there are other, more subtle ways to improve your earnings through cross-selling. For example, if cross-selling improves customer happiness, you’ll save money by spending less time and resources on customer acquisition.
Consumers today place a high value on convenience. Nobody likes to drive from store to store, searching for the exact item they’re looking for. Jumping from one website to another might also be a pain.
Your consumers will gladly return time and time if you cross-sell them a product they like. Moreover, if you strive to be a one-stop shop, you’ll find it easy to outperform the competition.
Helps customers progress through the buying process
As any seasoned salesperson knows, customers sometimes take a long time to make purchasing judgments. They may consider whether or not they require an item, browse around for the greatest price, or wait for a good bargain. On the other hand, cross-selling might provide customers with the extra push they need to complete their purchase, enhancing their desire to have everything they need in one location.
Strategies for cross-selling
Make the customer’s experience a top priority.
Cross-selling for eCommerce can anger or frustrate customers, which is why it’s critical to think carefully of how you cross-sell and what products you recommend to customers. On the other hand, cross-selling should improve a customer’s experience; therefore, make sure your cross-selling efforts add value and meet customer wants rather than coming off as a sleazy sales approach.
The idea is to consider what would add value to your customer’s experience by keeping your product recommendations relevant. For example, suggestions like adding a protection plan to a high-end item or purchasing a power cord for a device that doesn’t come with one are helpful and enhance the buying experience.
Begin with your best-selling items.
Start with your best-selling product and look for similar or complementary products to suggest alongside it. If the item is costly, think about how you may provide a service like a protection plan or a warranty.
It’s good to start cross-selling with your most popular or flagship items. Then, because these products are already receiving a lot of traffic and attention, you can try out other suggested products and services to see which ones are most frequently added to your consumers’ baskets.
Bundling is a cross-selling technique that involves packing things that complement each other so that customers know everything they may need to use their purchase successfully. For example, if a consumer wants a digital camera, you can sell a bundle that contains the camera, a memory card, and a camera strap.
To make the bundle more appealing, you can even provide a discount if all items are purchased together.
Make use of graphics
Use high-resolution photographs or videos to demonstrate things, explain how they work, and show the buyer how the item can benefit them. You can motivate shoppers to add products to their carts by urging them to “shop this look” or “shop this interior” and linking to other items for sale, which is a terrific opportunity for cross-selling.
For cross-selling, begin by deciding which things you’ll prioritize, and then plan how to ask clients whether they’d “like fries with that.” In other words, what similar products, complimentary products, or services can you recommend to a customer that will enhance or add value to their purchase? Then, continue testing and refining your cross-selling efforts as you experiment with different methods to see what is the best for your store and your clients.