“Do you want chips with that?” is perhaps the most common version of cross-selling that you’ll encounter. You ordered a burger. The chips are an additional product. If you opt for a side of chips, you’ll pay for the extra product, but it will add value to your burger-eating experience.
Let’s wrap this up and create a simple cross-selling definition. Cross-selling is the practice of selling additional, related products to your existing clients.
More Cross-Selling Examples
Cross-selling is a very effective strategy that companies use to boost revenue. You’ll often notice it being put to work in the financial services industry. Your bank might offer you investment brokerage services as an extra, for example. Or, your insurance company suggests that you consider their disability insurance (income protection) policy after you bought car insurance from them.
Cross-selling is widespread across industries. When it’s done well, it offers customers something extra that will work for them, and they’ll be getting it from a business they already trust. The reasoning is simple. Customers aren’t always aware of the full range of products and services you offer and how they complement each other. Having bought one, alerting them to another could mean more sales for you plus a satisfied customer.
Cross Sell vs Upsell
When successful, both cross-selling and upselling mean you get more revenue from your customers. But that’s where the resemblance ends. Upselling means that your customer buys a more expensive product instead of the one they first thought they’d buy. Cross-selling means that customers are offered, and often buy, extra products on top of the ones they’ve chosen.
Upsell Example
You’re about to buy a mobile phone. The sales assistant suggests a slightly more expensive phone with better functionality, explaining how you’ll benefit from an upgraded purchase. After thinking it over, you decide that the phone with the bigger price tag will serve you better than the one you initially chose, and you close the deal.
Cross-Sell Example
Now that you’ve chosen a mobile phone you’ll like, the sales assistant suggests you buy a cover and a screen protector. You know it’s a great idea to have these extras. You realise that they can help your new phone to survive mishaps. So, instead of just buying a phone, you buy the additional products too.
Benefits of Cross-Selling
Both customers and sellers benefit from cross-selling. The customer gets things they wanted but didn’t initially ask for, and the business makes extra sales. Various market researchers have confirmed that companies that cross sell make up to 30 percent more revenue and boost customer lifetime value. Summing up the benefits of cross-selling:
- Businesses increase sales and revenue
- Satisfied customers get everything they need from one source
- Customers return for more because they know more about the business’s capabilities and range – it becomes their go-to option
- Customers trust businesses that cross-sell. They know you’ll tell them if there’s anything extra that might complement their purchases
How to Cross-Sell to Customers
Many E-commerce stores use cross-selling as a matter of course. For example, if you order a shirt, the online store may point out a matching jacket. There are also the “limited time offers” on discounted extras and offers of bundled products. In person cross-selling is even more effective since sales agents can gauge customers’ needs and sentiments from a human perspective. Whatever your approach, these tips will help you to boost your cross-selling efforts.
Less is More
Don’t bewilder customers by offering way too much at once. Keep it simple with a few extras that customers can consider adding to their orders. Do make sure that the products you offer are closely related to the ones your customers are already interested in. For example, your burger salesperson doesn’t offer you a “seafood platter with that.” They offer chips because burgers and chips go well together.
Map Out Options
Some products are simple to cross-sell. If someone is buying earrings, offering a matching necklace is an obvious option. But not all products are as easy to link and different types of customers may have different needs.
If you’re selling through an e-commerce site, you can automate cross-selling offers based on customers’ purchasing history. If they’re consulting your sales agents, your representatives can ask a few questions to determine whether cross-selling will benefit your customers and if so, what they should offer.
Whether you’re cross-selling on auto or in person, making the right offers comes down to knowing what extras go with which products and why. Capture these ideas and put them to work for you.
Choose the Right Time
The best time to upsell or cross-sell is when your client has already decided to move ahead with a purchase. Our fast food example may be simple, but it also illustrates this. Nobody asks if you want chips before you’ve placed an order.
After-sales follow-up is another great time to offer additional products that will help customers enjoy what they’ve already bought even more. Wait until you’re sure they’re satisfied with the original purchase. If they are, offer them something extra that will make their positive experience even better.
Use Consultative Selling
Businesses that sell sophisticated products with comparatively large price tags almost always benefit from some level of in-person selling. Up to 83 percent of customers say they need some form of in-person help to make a purchase. Since you’re selling a valuable product, your representatives should definitely be there for them.
Your agents should have a framework they can use to determine which products are right for different types of customers. If they ask the right questions, listen carefully to answers, and adapt as they go, it will be easy for them to know which products are a good match for each customer.
Show the Value
While you don’t need to explain that necklaces and earrings go together or that burgers go better with chips, there are scenarios in which you’d need to show how your cross-selling benefits specific customers. Facts and figures can come in handy here. For example, if a B2B customer can see they’ll enhance their ROI thanks to your offer, they’ll be more likely to convert.
Outsourced Sales Solutions for Effective Cross-Selling
While brick-and-mortar businesses can train their employees to cross-sell, it gets more challenging when you work remotely with clients. For example, sales enquiries can come in at any time of the day – not necessarily during business hours. Ideally, you need a well-trained, scalable team that’s on duty around the clock.
That’s where we can help. Our UK-based sales teams consist of people who match your profile of the ideal representative. We work with you to determine how best we can serve your customers and help you reach your objectives. Then, our team springs into action and does the rest.
Are you making the most of your sales opportunities? Talk to us to find out how you can serve your customers better while enhancing your bottom line.