Cross-selling is a method of sales, according to which a buyer is offered to buy other products, complementing the first.
The Core of Cross-selling
If a cross-program is intended only on one person and at the same time the products of separate lines of activity are sold, then one can speak about internal cross-sales. Very often, internal cross-selling is called integrated sales, which is a correct definition of this kind of sales activity.
In case several commercial entities are united for joint sales, then there is external cross-selling. In this case, partners involved in cross-selling, draw the attention of a potential buyer to the product of the partner without unnecessary advertising spent from their part.
The main prerequisite for the introduction of cross-selling is the work of the firm in the target market. For a company working for a target group, it is essential to sell one consumer as many different goods as possible. For a company operating in the mass market, it is vital to sell many goods as possible to a large number of consumers.
- Formulate the consumer benefits and competitive advantages of all products offered.
- Identify all possible combinations of products that have the same target audience, identify newly emerged consumer benefits (synergy effect). Versatility. Simplicity. Cheapness.
- Think of a system of discounts and bonuses for customers.
- Identify those responsible for complex sales.
- Provide training for specialists in working with clients and other responsible persons.
- Identify a system for monitoring the effectiveness of cross-sales. The following is to be considered: Types of products and their combinations. Analytics on deals: the number of deals for separate products. Customers’ analytics. Profitability for products, customers, business areas. Other necessary indicators.
- Provide advertising and information support for innovations.
Cross-selling is a powerful way to improve business performance. However, to work out the right solutions in this area, sales analysis is necessary, in the course of which both customers’ preferences are revealed, and types of goods and services often purchased together are found.
- The article defines the term, compares cross-selling to upselling, provides examples and best practices to follow.
- The article gives practical tips on how to upsell and cross-sell.
- The article covers cross-selling in terms of tips, methods, and the best time to start.
Last Updated: 2020-01-27