What is cross selling?
Cross selling is the term used in the area of sales which infers to the technique of convincing a customer to buy an additional service with the one already bought. The best example to elaborate this would be the ecommerce platform wherein almost every product page displays the “also bought together” products lined up together. To yet understand better, we might have experienced in electronic outlets, the representative explaining to us about the additional features one could enjoy with a digital camera and memory card. The expense that is thrust on the customer in terms of the memory card is cross selling. However, it is to be noted that cross selling stands valid with only successful customers in all scenarios. If a customer is not happy with computer software, how would he need an added top up of training about the same software? Would he ever think about it?
Survey says that “Highly engaged customers buy 90% more frequently and will purchase up to 60% more per transaction”. Cross selling technique also follows the Pareto principle, which says “an organization can expect that 20% of its customers will bring in 80% of its revenue”.
Difference between cross-selling and up-selling:
Now that we have understood cross selling, let is move on to the other side of the coin which is up- selling. While cross selling is offering the customer a complimentary product, up-selling is persuading the customer to upgrade to a higher version of the existing product. This could be a service or a high end appliance with heavy features. Cross selling and up-selling play a significant role in sales of every organization and aids in reaping maximum benefits from existing customers. Thus, the primary target in both the techniques are returning customers who are happy with the already provided services.
How to do cross selling?
Though best practices for cross selling majorly depend on the type of business, here is a sneak peek on few of the techniques which could be considered:
- Start with explaining the benefits of the product originally bought when coupled with the complimentary one. This will help the customer actually feel the final result.
- Ask lots of valid questions and try to comprehend the requirement of the customer, budget and other key factors before beginning to pitch your target.
- Ensure to rightly bundle your product with its accessories to avoid confusion.
- Elaborate and demonstrate right away the working of the product with the additional component.
- Don’t hesitate to provide offers or a best possible slashed price for the product package to trigger interest within the customer.
The whole concept of cross selling boils down to the intention of earning the trust of customers. Only when this happens you can pitch cross selling, identify hurdles to success and appropriately structure your conversation to plot a roadmap. You should also ensure to offer continuous help in the long run to maintain a successful association with your customer.
Keep in mind that it is all about revitalizing your business with relationships!