Do you know how much money you are losing?
Probably a lot, if you are not cross-selling. Especially in your online business.
“Would you like to have a Coke with fries?”, “Would you like to add extra cheese to your burger?”
This all might sound like extra care offered by the employees of reputed food joints but evidently, this is all part of their training programs that would help the fast-food chains to reap extra financial benefits from the customers.
And this is what cross-selling is. As we mentioned above, cross-selling is significant for online businesses, so let’s understand the concept from an eCommerce point of view.
What is cross-selling?
Cross-selling is a well-known business strategy that suggests the customers buy additional products along with their purchase.
They recommend relevant items that can either be related or complementary to the purchase they have made.
Cross-selling in eCommerce can also be service offerings that suit the purchase made.
For example, if a customer purchases a costly item like a television then services that could be offered include an extended warranty period or protection plan.
Cross-selling is just a marketing activity based on the customers’ additional needs that require a proper plan and strategy.
Major benefits of cross-selling
Now that you’ve understood the meaning of cross-selling, let’s pay attention to the benefits of cross-selling in any eCommerce business:
Boost sales
Since cross-selling is about asking customers to buy additional items it is obvious that there will be an increase in sales. Each customer tends to buy more products than expected.
Increased profits
An increase in sales means an increase in profits. Usually, on add-ons and accessories, online stores have higher profit margins. Offering additional item suggestions on checkout can also help in increasing the profits.
Suggested Tool: Profit Margin Calculator
Gain customer loyalty
By offering products that customers need, you indirectly are solving their problems, and that makes them feel more satisfied and increases loyalty.
Selling to existing customers and gaining their satisfaction is much easier and time-saving than targeting fresh customers for cross-selling.
More understanding of customers
Since you will be analyzing each of your customers to offer them suitable suggestions, this in turn aids in understanding your customers much better and eventually results in amplified sales.
When is the best time and way to offer to cross-sell?
Many times as a customer, you unknowingly must have purchased the additional items. This means the psychological strategy has worked smartly.
If the customer without much effort becomes part of this kind of sale means your cross-selling technique is working effectively.
Make sure cross-selling should not be frustrating to the customers. Too frequent or purposely or inappropriately suggesting items can even lead to an abandoned cart which means the customers won’t even make the purchase they had intended to make.
Hence, the timing and the step in the buying process where you suggest the items should be appropriate and strategic.
The smart and time-tested way to cross-sell is while the customer is making the purchase on the product page or at the checkout.
This has shown positive results. Instead of showing the catalog of additional items, it is better to focus on the extra benefits that the customers can enjoy.
How to get started with cross-selling?
So after knowing about cross-selling and its benefits, if you wish to integrate it in your eCommerce business then here’s how you can get started.
Pay attention to customer experience
Customer experience should be your top priority.
As mentioned before enhance their shopping experience without annoying or frustrating them.
Fulfill your customers’ needs with the best suggestions at the best times.
The recommendations that you are offering should be either related to the existing purchase or at least complementary.
Always make the customers feel that they are getting the best deal.
Do not overdo it
The key to attracting customers is to keep it simple. Do not confuse them with many choices.
This will distract them from the shopping experience and forget about additional products, there are fewer possibilities of making the original purchase too.
Focus on best-selling products
Start with cross-selling with best-selling products. Keep the most popular items on the top and accompany them with related or complementary products.
There are many chances for additional sales. If the product is high priced, for example, a television or mobile phone then try to accompany it with extra services like an extended warranty period or protection plan.
This might work effectively. You can identify the best-selling products by analyzing which is getting more traffic and also which is sold more often.
Bundling strategy
A bundling strategy usually works and is an effective move too. In the eCommerce business, bundling has shown many positive results.
You can also offer the bundled items at a discounted price but ensure it doesn’t affect your profit margin.
Bundling examples could be if a customer is interested in buying a camera then in the bundle you can offer items like a tripod or a memory card.
Bundling simply means offering a package of products that instantly attracts customers and compels them to purchase the bundle.
Follow-up with email marketing
To begin with, cross-selling through email or newsletter also is effective.
After a customer makes a purchase, you can send an attention-grabbing newsletter to the same customer showcasing bet-related or complementary products.
Don’t go for big products or too many choices.
For example – If the customer’s latest purchase is a laptop then you can offer an additional mouse, mouse pad, and other such accessories that complement the product.
This is a manual way of cross-selling but mostly works.
Showing what other users bought
Customers always show interest in other customer purchases as it builds a trust factor.
So along with the current product, if you recommend to customers what other customers brought, it can help them to make a proper decision.
They would like to repeat the same pattern of purchase and hence there are chances of successful cross-selling.
Analyze properly what can match each purchase of your customer and offer effectively. You can certainly make additional money with cross-selling.
