With its help, you can increase your company's revenue and profit. According to McKinsey
, cross selling can increase sales by 20% and profit by 30%.
As a rule, we are talking about selling related products. When, in addition to a smart watch, a seller offers to buy a power bank, or while buying a burger you're offered cola and fries, these are examples of cross-selling. In our field of tourism, everything is a little more complicated and elegant. A well-known example: mutual discounts for customers of Lufthansa Airlines and Sheraton Hotels & Resorts.
Its philosophy is to solve a customer's problem by offering them even more value from a new acquisition. Using this technique, salespeople gently lead customers to the opportunity to purchase related products to those already purchased.
There are two main types of cross-selling:
Sale of additional products.
This may be related products from different categories or similar ones from the same group. Occurs while a major purchase is being made. For example, you can offer our additional services
to tourists after they decide to purchase a transfer.
Package offers. Combinations of the main product and related products / services that are thought out in advance and packaged. A typical example of a package is a combo in fast food establishments.
Super-technique is used in these ways:
Alright, it's clear theoretically. How do I use it in practice?
Recommendations based on purchases. Implemented, for example, in the form of a recommended list of compatible products on the main product's page. For example, they can be a part of one process (e.g. roundtrips).
Using social proof. We often see the inscription in online shopping sites "Products related to this item: …". A visitor may be interested in such an offer, since someone has already ordered these products together, perhaps they should do it too.
Promotions. Supermarket classic — 2+1, buy two products and get the third one for free. Another option is a gift (for example, free delivery) when a client's purchase is more expensive than a sum X.
Offering regular maintenance. Upselling regular services and consumables.
Offer more at the time of the sale
There's an art to this process. Here are a couple of things you should know:
Wait for payment for the first purchase. This requires software in the sales process that does all the work for you. Once the customer agrees to make the first purchase, and enters their card info, then (and only then) do you make an up, or cross-sell. If you try for the up-sell before the card goes in, you'll likely lose the entire order if the person isn't interested in the additional offers.
Don't annoy them to death. Don't use more than one cross-sell and one up-sell offer. Don't flood customers' mailboxes with newsletters, one per week is more than enough. If you get annoying, they'll think you're a scam artist and not a legit business owner.
Order bumps are not annoying. They are seen as a bonus. An order bump is "hey, if you want a second XXX with your order, I throw in another for half price and free shipping!". Since your customers already want what you're selling, of course they'll want another one for half price or 75% off. Or three more for the price of two.