Cross-selling term is applied a lot in the lecture hall, and enterprises also use a lot in business strategies to increase sales performance. Follow today’s article to learn how this concept benefits businesses, and you’ll learn how to apply them in sales tactics.
1. What is cross-selling?
Cross-selling is a well-known concept in business and is used by many famous brands in marketing and sales strategies. Specifically, in addition to the main product or service of the brand, customers will be introduced to more related things to increase the experience and are often sold in the form of a “combo”.
This skill of cross-selling products and services is widely used in the FMCG industry from brands such as KFC, Lotte, McDonald’s, etc. When you buy fried chicken, the staff will introduce more water or suggest you a ” combo” package that has a cheaper fee.
With this tactic, businesses will easily stimulate customers’ gainings to sell more products and services.
2. What are the benefits of cross-selling?
Over the years, there is no business that can deny the benefits that cross-selling skills bring.
- Contributing to the growth of sales and profits – Revenue and profit are the “lifeblood” and goal of the business. Therefore, thanks to cross-selling, customers buy more, and sales reach significant levels. In addition, using Cross-selling tactics will reduce Marketing costs, but still ensure sales effectiveness.
- Gain customer loyalty – Cross-selling skills are not only for sales but also for psychological, customer engagement. That is, when employees introduce a cheaper bundle of products or services, customers feel interested, and over time they become loyal customers.
- Increase return on investment (ROI) – Thanks to cross-selling, businesses will not need to invest much to acquire new customers at high costs. Because the current number of customers will buy more products and services, the revenue will increase.
- Effective customer retention strategy – When customers are provided more or enough with the demand, they will not look to competitors to use equivalent goods and services. The cross-selling strategy will pull them to stay with the business for a long time, and continue to support in the future
3. The art of successful cross-selling
It is not too difficult for you to apply Cross-selling tactics to your business, namely:
- Suggested by-products: You can imagine this when customers buy the main product, you can give suggestions to buy more related products. For example, if a customer buys laundry soap, you can introduce a laundry softener of the same brand. This tactic is also used on e-commerce platforms such as Tiki, Lazada, etc.
- Create savings combos: Customers always want to buy the most profitable goods, and businesses should satisfy them by creating combos of main products and complementary products with lower prices than usual. This will stimulate them to buy more.
- Incentives: Give customers the opportunity to shop with coupons or attractive % discounts. But the necessary condition is that customers must buy at the allowed level to be able to apply the offer.
- Free delivery: Customers have a common mentality that they do not want to pay extra fees in addition to the purchased item, especially the shipping fee. Therefore, you can offer a “free shipping” program with your purchase.
When the customer’s buying interest is put first with programs and incentives, their purchase intention will increase. However, for successful cross-selling tactics, you must understand the following principles:
- Communication with customers: Businesses must actively communicate with customers to find out their needs and preferences in order to come up with an appropriate cross-selling strategy.
- Track the customer journey: Cross-selling strategy is more secure when businesses track the customer’s buying journey. Because you will know the right time to launch promotional sales tactics or accompanying products.
- Flexibility in sales: Do not try to force customers to buy, instead offer solutions that suit their real needs, and introduce accompanying products to help solve customers’ problems more thoroughly. Thus, customers will be ready to pay to own the products and services of the business.
Hope you can understand the concept of Cross-selling with ease through the above article, and continue to follow BEMO to receive many interesting updates.