If you don't have time to read the whole thing:
Cross-selling is a sales technique that is used to increase a company's income by offering customers complementary products or services.
What is it?
Why use cross-sales?
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.
Types of cross-sales
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.
What can go wrong with a cross-sell (and what to do in such cases)?
A seller specializes in a certain type of product and does not know how to sell something else.
If there is direct communication with a client, it does not always end successfully. Sometimes there are difficulties:
A seller offers everything to everyone without taking into account the needs of customers and the characteristics of the products.
A seller obsessively overwhelms customers with offers, so they can even refuse buying the main desired product.
All these problems are solved quite simply — by training yourself and your staff.
Therefore, we will not focus on them.
Therefore, we will not focus on them.
Online cross-selling may also not bring the desired result if:
Algorithms do not take into account the price category of the main product and offer a budget-friendly additional service to a luxury one and vice versa.
Offers seem intrusive. For example, newsletters come several times a week.
Cross-selling occurs at the wrong time. For instance, it makes no sense to offer customers a cabin upgrade on the last day of their cruise.
Such problems are solved by preliminary analysis of user behavior. Based on the data received, you need to adjust the algorithms so that they offer the right product at the right time.
In addition, if there is no seller involved in the process of cross-selling, customers must understand why one product is worth buying with another one themselves. To do this, they need to be provided with additional information: for example, an explanation in a product's description.
How can Kiwitaxi transfers help me to cross-sell?
There's a discount for round-trip transfers;
Perhaps the easiest thing to do is to offer tourists buying a roundtrip. It is worth explaining them the benefits of this:
There will be no need to worry about a trip during the vacation;
They will have the ability to request the same driver immediately after the first transfer if hey make friends;
If tourists want to change plans, the transfer can be rescheduled or canceled without loss of money.
A pleasant option for both tourists and you is car rental + transfer or sightseeing trip + transfer. As a rule, it is cheaper than ordering services separately. In addition, this way you can solve the problem of organizing leisure activities for tourists.
A very useful cross-sell that you will definitely not miss if, for example, you orginize trips for families with children. It is important not to forget to offer tourists (and in some countries even to insist!) to order additional services such as child seats. Moreover, there are options with English speaking drivers, water and more. This will not only increase your income, but will also make customers' trips as comfortable as possible.
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