For small business owners, getting customers to spend more on their products and services is a top priority. Fortunately, cross-selling can help you do that. This sales technique is designed to get the customer to buy something directly related to the purchase they just made.
What is cross-selling?
Cross-selling is a sales technique in which a company promotes complementary products or services to customers during or after the initial purchase. The aim is to increase sales value and improve the customer experience by providing additional options tailored to the customer’s needs and interests.
- Physical store example: Imagine you are purchasing a computer at an electronics store. The salesperson suggested upgrading your computer’s memory to improve performance. This recommendation is a classic example of cross-selling.
- Digital retail example: Online shopping platforms often employ cross-selling by displaying suggestions such as “Customers also bought these” or “People often buy these together.” These prompts introduce shoppers to complementary products that pair with previous customers’ initial selections.
When executed thoughtfully, this approach can provide a more comprehensive solution to your customers’ needs while also increasing your business’ average transaction value.
If you’re wondering how to introduce cross-selling to your sales toolbox, there are several strategies that brick-and-mortar and online retailers can use to get started.
cross-selling strategy
showcase accessories
Some of the best strategies can be implemented quickly, whether digital, in-store, or even omnichannel. For example, if you run an electronics store, placing accessories near your big-ticket items is a great way to cross-sell.
You can also place memory cards, charging cables, and upgraded batteries on shelves around the display unit where your computer sits. If your store is online-only, you can create links to other pages and use keywords such as computer accessories.
You can also place tabs at the top to simplify navigation for users and achieve cross-selling objectives.
Please give an example
You don’t have to look far for examples. In fact, the next time you try to buy fast food at McDonald’s, you’ll likely encounter a cross-sell when the person at the counter asks you if you want dessert with your food or if you want the latest “meal perks.” . ”
If you have a physical location, keep in mind that you will need to train your employees on the real values and techniques behind cross-selling. For example, someone selling windows to home improvement companies should emphasize how customers can save more on heating and cooling costs.
separate lane
If you need a little more convincing as to how successful this technique is, check out Amazon. reportedly derives 35% of its sales from cross-selling. This number dates back to 2006.
It’s important to keep cross-selling and up-selling in separate lanes. These are two different sales techniques, with upselling trying to sell something more expensive and upgraded to the client.
In the computer store example, an upsell would be trying to sell a customer a computer with better features, such as a touch screen. Both techniques are useful ways for small businesses to increase their profits.
Here are some easy-to-implement and effective cross-selling techniques.
lower the timing
Patience is one of the cornerstones of cross-selling when using email and other digital technologies. Getting the timing right means understanding how to schedule a series of emails to sell other services or products. For example, if you sell web design services to a client, you might want to follow up with another email a week later about the importance of good content and copywriting.
By focusing on analytics, typically related to open rates, click rates, and response rates, you can automate your system and fine-tune your timing.
bundle items
Grouping items together as a package so that they can be cross-sold is as easy as using the “often bought together” method online. Offering discounts on packages that complement existing services is a method that can be used in brick-and-mortar stores.
use appropriate language
Attracting customers for cross-selling is one technique you can’t miss. Remembering that one of the tools for successful cross-selling is engagement will give you a better understanding of the type of language best to use.
The language of cross-selling communicates on an individual and interpersonal level. Using words like you and you help shoppers imagine how they might use your product or service.
Set limits
It’s good to remember that scarcity is one of the cornerstones of any sale. Setting a time limit on your resale offer will help your clients make a quick decision.
A good example is when a client reports that they only have 4 spare chargers left that came with the smartphone they are purchasing.
One of the other tips you can use to enhance your cross-selling efforts is user-generated content. There are still many e-commerce companies that struggle to gain customer loyalty. Having reviews and customer testimonials on your website can help answer questions and help with cross-selling efforts.
Know your target market
Revisiting your target market will give you a better understanding of how to cross-sell to that market. Of course, you’re likely already doing that, but now’s a good time to check your social media feeds and analytics to see what you can adjust.
This type of information can help you stock your shelves and place inventory and links on your website.
Summary of key cross-selling strategies
See the table below for a concise overview of the above list.
| strategy | explanation | Example/Implementation |
|---|---|---|
| showcase accessories | Highlight related products that can be purchased with the main product. | At electronics stores, store memory cards, charging cables, and batteries near your computer. Online, use keywords and tabs to direct users to your accessories. |
| Please give an example | We provide a real-world example of cross-selling to make it relevant and easy to understand. | Train your employees using examples such as fast food counter personnel serving desserts and “meal deals.” Home improvement salespeople often emphasize the savings on heating costs by purchasing windows. |
| separate lane | To avoid confusion and market effectively, distinguish between cross-selling and up-selling. | Cross-selling: Offering related products. Upselling: Advertising a high-end version of a product (such as a computer with touch screen capabilities). |
| lower the timing | Timing is critical when using digital technology, especially email, for cross-selling. | After selling your web design services, send a follow-up email about the importance of content and copywriting. |
| bundle items | We offer sets of complementary items together, sometimes at a discounted price. | Online: “Products often purchased together” prompt. In-store: Offer discounts on packages of related products. |
| use appropriate language | Engage with customers using personal and personalized language that helps visualize the usefulness of cross-selling products. | Using words like “your” and “your” helps shoppers imagine using your product or service. |
| Set limits | Increase urgency and scarcity to encourage faster purchasing decisions. | Indicates that stock is limited (e.g. “Only 4 backup chargers left!”). |
| User-generated content | Use reviews and testimonials to build trust and support cross-selling proposals. | E-commerce platforms can highlight positive customer reviews and user photos of products in use to encourage cross-selling of related products. |
| Know your target market | Regularly analyze and adjust your strategy based on your target audience’s behavior, preferences, and feedback. | Use social media insights and website analytics to understand your target market’s preferences and adjust your product placement and recommendations accordingly. |
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