Cross-selling: Smart route to improve small business sales
Posted: Wed Dec 04, 2024 9:10 am
“Would you like coke or fries with that?”Haven’t you heard this question at KFC or McDonalds while purchasing your favorite burger or chicken bucket?Recommending complementary or related product/service is one common sales strategy used by companies to make instant profit. No matter which industry you belong to, it can be used to motivate the buyers for purchasing more products from you. This sales technique is popularly known as cross-selling.It is the best way to drum-up the sales of your small business, provided you do it in the right way. Cross-selling doesn’t mean you offer a product just for the sake of selling it.Cross-selling involves foreseeing the client’s needs and offering a relevant product that works best with the original product. It should provide real advantages to the user.Let’s delve a bit deeper and understand what is cross-selling?
Defining cross-selling
Cross-selling is presenting the value of complementary or related products or services that will render more benefits to the buyer if purchased together. You pair products that work well togethe Bahamas Phone Numbers shampoo and conditioner, phone and memory card, bread and cheese, etc
Cross-selling has worked for companies of all sizes, for instance, Amazon attributes up to 35% of their revenue from cross-selling.
Cross-selling is an art that needs to be mastered. You have a buyer who is already interested in one product, so your half work is done. You just need to put in a little more effort and show him the benefits of getting the other with it. With cross-selling, you can earn more profit in each transaction.Did you ever notice those little things arranged near the sales counter in a store? Well, that is kept there on purpose. Children get enough time to convince their parents to pick chocolate or a toy while waiting in the billing queue.Even on various e-commerce sites, you will see suggestions of products that go well with the existing purchase. Such suggestions sometimes encourage the buyers to make an impulse purchase which results in profitable sales for the company.
Cross-selling examples
Here are a few cross-selling examples that will help you in understanding this concept more clearly.Cross-selling example 1: A clothing retailer suggests a winter cap to a buyer purchasing a jacket.Cross-selling example 2: A sales representative from an insurance company targeted his current customers living in an area experiencing a flood.He bundled homeowner insurance with flood insurance and presented it to his customers saying that “your current insurance only covers water inside the home; by getting flood insurance, you can protect your home from an influx of water outside your home as well”.Cross-selling example 3: A web development company suggests digital marketing services to a current client who recently got their website developed.
Benefits of cross-selling
If you are selling more than one product, then you should consider cross-selling as it has a wide spectrum of benefits. Each product has certain strengths; when used together, it gives the buyer more benefits.You just need to connect the one with the other smartly. If effectively executed, this useful technique can help in maximizing your small business profits.Here are various benefits of cross-selling:
1. Increasing revenue
The more products a customer purchases, the better will be your revenue growth. But for this, you need to put the right things together. The best combinations can help in winning more sales.Most of the customers don’t mind spending if they get value for the money spent. So, you should know how to present the value by connecting both the products.Cross-selling is like feeding two birds with one seed. By enhancing the buying experience, you gain the trust of the customers, and you earn good profit by convincing the customer to buy a complementary product.
2. Better customer retention
When a customer spends more, he is likely to make the most of the product. If your combination is perfect and it provides the promised value, then there are chances that he might use your product for long.High customer satisfaction most of the time results in future purchases. When customers see the benefits of both the products together, they tend to purchase both the product again instead of getting one.Cross-selling doesn’t only boost your customer retention rate but also acquaints you to new opportunities. Satisfied customers often share their positive experiences with others. They write reviews or recommend your products to their networks.
“If you do build a great experience, customers tell each other about that, word of mouth is very powerful”- Jeff Bezos
3. Customers become more loyal to your brand
Haven’t you frequently bought multiple products of the same brand? When customers purchase a product and find it good, they prefer buying more products from the same place.In cross-selling, you have better chances to make a good impression on the buyers as you can sell two products at the same time. If both the products manage to impress the clients, then there are high possibilities that they will buy more from you.Customers who trust you stay loyal for long. Such customers know they won’t be deceived and so prefer trying new products from the same place instead of entering unknown territories.
“Once you create a loyal customer base it is tough for a competitor to take that away”- Joseph D Mansueto
Effective cross-selling techniques and tips
Cross-selling is a winning sales strategy, but unfortunately, some of the companies don’t do it right. Just knowing a strategy isn’t enough you need to execute it well.Here are some effective cross-selling techniques and tips that can help:
1. Know your customers
Being familiar with the buying habits and needs of a customer is pivotal for cross-selling success. You must know what the customer wants, to suggest the right product.If the customer doesn’t find the product you are offering useful, they will buy the product they are interested in and leave. You will only miss an opportunity of earning a profit.
Research about your customers and find out what more will they need to overcome the current
Defining cross-selling
Cross-selling is presenting the value of complementary or related products or services that will render more benefits to the buyer if purchased together. You pair products that work well togethe Bahamas Phone Numbers shampoo and conditioner, phone and memory card, bread and cheese, etc
Cross-selling has worked for companies of all sizes, for instance, Amazon attributes up to 35% of their revenue from cross-selling.
Cross-selling is an art that needs to be mastered. You have a buyer who is already interested in one product, so your half work is done. You just need to put in a little more effort and show him the benefits of getting the other with it. With cross-selling, you can earn more profit in each transaction.Did you ever notice those little things arranged near the sales counter in a store? Well, that is kept there on purpose. Children get enough time to convince their parents to pick chocolate or a toy while waiting in the billing queue.Even on various e-commerce sites, you will see suggestions of products that go well with the existing purchase. Such suggestions sometimes encourage the buyers to make an impulse purchase which results in profitable sales for the company.
Cross-selling examples
Here are a few cross-selling examples that will help you in understanding this concept more clearly.Cross-selling example 1: A clothing retailer suggests a winter cap to a buyer purchasing a jacket.Cross-selling example 2: A sales representative from an insurance company targeted his current customers living in an area experiencing a flood.He bundled homeowner insurance with flood insurance and presented it to his customers saying that “your current insurance only covers water inside the home; by getting flood insurance, you can protect your home from an influx of water outside your home as well”.Cross-selling example 3: A web development company suggests digital marketing services to a current client who recently got their website developed.
Benefits of cross-selling
If you are selling more than one product, then you should consider cross-selling as it has a wide spectrum of benefits. Each product has certain strengths; when used together, it gives the buyer more benefits.You just need to connect the one with the other smartly. If effectively executed, this useful technique can help in maximizing your small business profits.Here are various benefits of cross-selling:
1. Increasing revenue
The more products a customer purchases, the better will be your revenue growth. But for this, you need to put the right things together. The best combinations can help in winning more sales.Most of the customers don’t mind spending if they get value for the money spent. So, you should know how to present the value by connecting both the products.Cross-selling is like feeding two birds with one seed. By enhancing the buying experience, you gain the trust of the customers, and you earn good profit by convincing the customer to buy a complementary product.
2. Better customer retention
When a customer spends more, he is likely to make the most of the product. If your combination is perfect and it provides the promised value, then there are chances that he might use your product for long.High customer satisfaction most of the time results in future purchases. When customers see the benefits of both the products together, they tend to purchase both the product again instead of getting one.Cross-selling doesn’t only boost your customer retention rate but also acquaints you to new opportunities. Satisfied customers often share their positive experiences with others. They write reviews or recommend your products to their networks.
“If you do build a great experience, customers tell each other about that, word of mouth is very powerful”- Jeff Bezos
3. Customers become more loyal to your brand
Haven’t you frequently bought multiple products of the same brand? When customers purchase a product and find it good, they prefer buying more products from the same place.In cross-selling, you have better chances to make a good impression on the buyers as you can sell two products at the same time. If both the products manage to impress the clients, then there are high possibilities that they will buy more from you.Customers who trust you stay loyal for long. Such customers know they won’t be deceived and so prefer trying new products from the same place instead of entering unknown territories.
“Once you create a loyal customer base it is tough for a competitor to take that away”- Joseph D Mansueto
Effective cross-selling techniques and tips
Cross-selling is a winning sales strategy, but unfortunately, some of the companies don’t do it right. Just knowing a strategy isn’t enough you need to execute it well.Here are some effective cross-selling techniques and tips that can help:
1. Know your customers
Being familiar with the buying habits and needs of a customer is pivotal for cross-selling success. You must know what the customer wants, to suggest the right product.If the customer doesn’t find the product you are offering useful, they will buy the product they are interested in and leave. You will only miss an opportunity of earning a profit.
Research about your customers and find out what more will they need to overcome the current