Cross-selling: An Excellent Marketing Strategy to Improve Your Sales
In Cross-selling, the marketing team tries to discover the best possible strategy to endorse their product.
It doesn’t matter, whether the company sells the products offline or online, a well carved out plan can increase a company’s sales by multiple folds, and therefore, it is crucial that the products get proper attention from the customers.
However, there are situations when instead of introducing a new product, a company wishes to come up with a plan to retain existing customers.
This strategy could increase the overall revenue of an existing product.
And to address their needs, Upselling is one such method that will help a company to influence existing customers so that they upgrade their current product to a better version with more benefits.
For instance, if an OTT platform provides free high-quality content to users, then after a point, they may think about subscribing to the premium version to access better content.
The quality of the product must be maintained thoroughly to retain the consumers.
If the premium content is well-publicized and has benefits, then there are high chances that the users accessing free content on the OTT platform will ponder about upgrading their subscription and converting into premium users. This is the concept of Upselling.
Another effective marketing strategy to increase the sales of a product is called Cross-selling.
How does Cross-selling work?
Cross-selling is also known as Attachment selling, and unlike Upselling, in this type of marketing strategy, the primary product is sold with a related product.
According to the diagram mentioned above, a bank offers several services like ATM facility, credit card facility, net banking, mobile banking, amongst other services for a nominal fee to a customer who came to open an account.
It is a marketing method to influence customers to buy related items that they will ultimately need afterward with the primary product.
For example, a customer cannot visit the bank every time to withdraw money, and he will need banking facilities at various places.
Therefore, it is vital on the bank’s part to endorse the related items while selling the primary product. Another case could be the leading E-commerce website Amazon.
Suppose, if a customer wants to purchase a Samsung phone, and the seller already added a tempered glass screen protector with the primary product plus, the seller also provides an option to the customer to either buy the accessory or not.
Eventually, a customer WILL need the glass screen protector for their handset in the future. With the related product, the seller can also offer discounts and easy payment options that are available during the payment process. It is one of the best examples of Cross-selling. You ADD related items with the primary product and also offer discounts and easy payment methods. Such tactics create a good impression on the customers.
6 Steps to increase Cross-selling
Before a company begins to cross-sell its products, it is crucial to understand the psychology of customers. A company must ask itself, what all related items a customer may NEED with the primary products. To understand the cross-selling concept more clearly, let’s look at the following steps below:
- Companies must understand the needs of customers. Somebody purchasing a laptop may also like to buy some related accessories like a laptop bag.
- It is essential to show our related products smartly. For example, if a customer buys a formal shirt from an online website, he may also be interested in purchasing formal trousers, a tie, or a belt.
So, these related products must show on the portal simultaneously to draw the attention of the customer.
Strategically placed products help to influence the potential customer.
- Discounts and offers play a significant role to convert a potential customer into a buyer. Especially during festive seasons, sellers offer several discounts to customers.
- It is important to remind customers about the primary products and the related items by displaying them on the online portal from time to time.
- If the store is offline, it is important to ask the customer “if they NEED anything else”. It is one way of influencing a customer while practicing cross-selling strategy.
- Law of Averages – it works on probability. Suppose ten customers visit a seller’s store (online/offline) and he is reminding the customers about the related products, subtly from time to time.
Then, there is a high possibility that at least 4 or 5 out of 10 customers MAY reconsider their decision and buy some related products. This is an important case of Cross-selling.
Cross-selling and Upselling can create a path that could increase the company’s sales, strengthen the company’s relationship with its existing customers, and grow the business. It is always essential to understand the need of the customer.
As they may not think about buying related products, it is vital that the enterprise correctly endorses their products, gives several choices to consumers, and subtly influences them to buy related products.
Upselling works best with customers who are already using a specific product of the company.
The company may control the consumers with offers, show them other advantages of upgrading their product, and add more facilities accordingly. Discounts and offers always attract price-sensitive buyers.
Even though there is nothing much to understand in these little marketing tricks, thorough guidance can always give you a better understanding of ways to improve your sales in such a competitive market.