By Ishita Bagga
Cross-selling is the practice of marketing additional complementary products to the customers. It is more prevalent in the financial sector. Credit cards are also sold to people registering for savings accounts. This is an example of cross-selling.
It is often confused with up selling. Up selling basically means selling an improved version of a product. The buyer has to pay a higher price for the product due to the additional benefits that the improved version offers. It helps to make a sale more profitable for the business and the product more beneficial to the client.
But, there’s a difference between upselling and cross selling. It has been shown by the following example: -
Cross selling examples
AirCrews Aviation Pvt Ltd. is cross selling its new book named “The world of Airplanes” with its already existing service, i.e., Counseling for Pilot Training.
Mc Donald’s offering fries with burger I another example of Cross selling.
An electronics retailer suggesting gadget insurance with a new laptop purchase
eCommerce websites showing “customers also bought”
Fashion brand offering accessories with clothes.
CROSS SELLING STRATEGIES
Recommend related items: This prompts the customers to buy more products that complement with the products already chosen.
“Shop the look” technique: The “shop the look” technique involves presenting customers with a high-quality image of a stylish model or environment in an effort to sell extra products.If we go to some fashion outlet and we look for a dress, the salesperson will show us an image of a model wearing the same dress with a pair of shoes and accessories, which will prompt us to buy the whole look. This technique is really successful most of the time.
Price bundling technique: In this technique, similar products are bundled and offered at a discount to the customers. For e.g., Different shades of lip gloss bundled together and offered at a discounted price.
Add complementary products: Cross selling insurance and warranty services with a purchased product.
In Cross selling, the business objective is to increase order value and inform customers about additional product options they may not already know about. The key to success is to truly understand what your customers value and then responding with products and corresponding features that truly meet those needs. Therefore, it is a very efficient technique to increase sales and should be practiced by businesses more often.
AirCrews Aviation Pvt Ltd