Did you ever hear the question about whether you want fries or coke at KFC or McDonalds while buying a burger or chicken bucket? Even many businesses recommend complementary or related products/services if you buy something from them. It is one of the most common strategies used by companies to make instant profits.
Irrespective of the industry, it helps you to motivate your customers and make them purchase more products from you. It is popularly known as cross-selling. It’s the best technique to drum up your sales and grow your business.
Remember, this technique doesn’t mean to sell your products just for the sake of selling. It allows you to assist your users with tangible benefits, and even you can expect your customer’s needs.
Definition Of Cross-Selling
Cross-sell is the act or technique of selling another product or service to a current customer and another prospective customer. In essence, companies define cross-sell in several ways. In most cases, companies will use the word cross-sell to mean that you are selling to two different parties besides selling to one. In other words, you are getting two products from your customers instead of one.
This is an excellent tactic because that makes it easier for a customer to purchase over one product from a company at a time. However, this tactic needs to be successful first to establish a relationship with the customer before crossing-sell.
It means you need to have developed a solid rapport or relationship with your customer so that when you ask them if they would like to purchase a product, they’ll be more likely to agree to do so rather than an object. You also need to tell the customer what you’re about to do; this way, they will be less likely to be surprised by the cross-sale tactic.
Another way of creating a profitable cross-sell is to suggest additional complimentary items for purchase. For instance, if you have a customer who purchased an electric scooter last time but would like to purchase a motorcycle in the future, suggesting additional complimentary items for purchase might be a great cross-sell tactic.
By suggesting additional complementary items, you are not suggesting that the products are replaced by each other. Instead, you’re suggesting that the products will complement each other and help them maintain their mobility. These suggestions should be used with caution, and it’s a good idea to consult a sales professional before making any suggested complementary item sales pitch.
Know in-detailed about cross-selling, here are some of the use cases where you can understand the concept clearly.
Use case 1
If you go to a shop and ask for a winter jacket or sweater, the retailer asks you whether you want to buy a winter cap, muffler, gloves and socks. Here, the retailer selling you an excellent and logical combination of helpful stuff.
Use case 2
If you visit an agent to get health insurance, that person offers you the life insurance and more benefits. Additionally, that salesperson recommends some other best policies or insurance schemes that are more beneficial to you.
Use Case 3
A development company offers services like digital marketing to their existing clients who have got their website developed.
Use Case 4
If you go to a supermarket, little things are kept at the sales counter. Are these kept for a purpose? Yes, you go to a counter to make a bill for the things and see these little things there. What do you feel by looking at them? You feel like buying them, and even every child asks their parents to buy chocolates and toys for them.
How Cross-Selling Benefits Your Company?
The benefits of cross-selling for small businesses are becoming more apparent to most entrepreneurs. With an economy in recession, many small businesses are finding it difficult to survive.
To make a profit, these businesses must replace lost sales and make up for any income that is not coming in because of customers pulling their wallets out because of economic problems. The answer to this dilemma comes as selling a product that can cross-sell other products. Let’s look at some of the common ways that this is done.
One way to cross-selling benefit small businesses is when you can sell items similar to those offered by your competitors. If you sell office supplies like paper clips, staples, and staples, you might find that your competitor has just a better price on a pen.
When you offer items similar to the items your competitors are selling, you are likely to get a reasonable price. You might also find that you are asked to carry fewer items or that your purchase might not be significant. By offering products similar to those offered by your competition, you are increasing the likelihood of your customers buying what you have and are likely to stay for longer.
Makes Customers Life’s Easy
Another way to cross-selling benefits small businesses is to offer small business products that people need but don’t have in stock. Consider products like laundry detergent or cleaning supplies.
These items may not seem that important to your customers, but they make people’s lives easier and help save money on supplies that businesses need to keep operating. By offering small business products like these, you can position yourself as an expert in the field and position your small business as an expert in helping other small businesses maintain their supplies, so they don’t run out.
Allows You To Sell More Products
Consider how your customers act when they receive free items. After receiving items from your business, what do they do? Do they put the items back in their inventory immediately? Or do they look for more items to buy from you? It is one way that cross-selling benefits small businesses.
This is about cross-selling and how it helps small businesses. There are many more ways that how can cross-selling benefits small businesses. One key is understanding where your customer’s interests lie and aligning those interests with your own.
Remember that when you provide great products that customers need you to become an expert in your field. You will have more customers come back to buy from you because of this relationship you create with your customer.