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Getting to Know Cross-Selling: Examples and Strategies
Cross-Selling: Maybe many do not realize that in the world of daily marketing activities, there is one marketing strategy called cross-selling.
Cross-selling is one of the most popular marketing strategies because it is quite effective in increasing sales. Maybe, the term cross-selling is still quite foreign to you, huh, Majoopreneurs? However, this strategy has been encountered very often.
Hm, what else is this creature? This marketing strategy called cross-selling has often been done long before there were online business activities like now.
Usually, we can find cross-selling practices in fast food restaurants or online businesses today.
In line with the development of time and technology, this cross-selling marketing strategy has become the target of various types of businesses, including online businesses.
The reason is that this type of strategy can increase very promising income.
For example, when we go to a mini market and we are at the cashier to pay for groceries. Usually, the cashier will offer additional products that can complement our purchases.
Simply put, when we are buying margarine, usually the cashier will suggest buying bread or ready-to-drink coffee. This is part of the cross-selling strategy, which is to offer several additional products that are still related to the main product purchased.
If done right on target, cross-selling can be a very effective technique to increase sales. Because giving additional product recommendations is much more interesting than selling from scratch.
The thing to note is that if cross-selling is done aggressively and seems selfish, it will potentially make customers feel uncomfortable and reluctant to return.
Definition of Cross-Selling
The above briefly explained that cross-selling is a strategy to offer additional or complementary products to consumers.
HubSpot explains that cross-selling is the act of encouraging the purchase of anything related to the main product.
In addition to the example of buying margarine and then being offered bread or ready-to-drink coffee which is usually displayed at the checkout counter, there are other examples that you must have encountered before.
For example, when buying a burger at a fast-food restaurant, usually the cashier will also offer additional products such as fries or drinks.
In essence, cross-selling is something that is done to encourage consumers to buy additional products that are still relevant to what they bought.
Simply put, when we are shopping for margarine, generally the cashier will recommend shopping for bread or ready-to-drink coffee.
Well, this is a form of activity from a cross-selling strategy, which is to offer one or two additional products that are still closely related to the main product we buy.
Another understanding of cross-selling is an effort or action taken to be able to encourage purchases of anything related to the main product.
In addition to the example of shopping for margarine and being offered bread or ready-to-drink coffee, there are other examples that you must have found before.
Like when we buy a burger at a fast-food restaurant, generally the cashier will offer additional products, such as fries, drinks, or additional toppings.
In essence, cross-selling is an activity carried out to encourage consumers to buy additional products that are still related to what they spend.
The application of strategies like this is also not always used in various types of conventional sales. If you have an online business, you can also apply a cross-selling marketing strategy.
When shopping in one of the marketplaces or e-commerce and you have added one or more products to the shopping cart.
Generally, there will be options, such as “see also similar products” or “maybe you need this one?”
Various things like this are one of the implementations of the cross-selling strategy. The purpose of cross-selling is so that consumers who shop can add other items to their shopping cart.
Why is this cross-selling strategy very well known and very often applied by various companies? The answer is that the cross-selling strategy is very effective.
Besides being able to increase company profits because consumers can add their shopping products, there are other benefits that companies can feel when implementing cross-selling.
When the cross-selling strategy can be done correctly, every customer will be satisfied with the service you provide. This makes you judged to be able to offer products that are needed by customers.
How to do cross-selling
What should you do if you want to do cross-selling? Here are the steps you can follow:
- Write down all the products you offer/sell.
- Look for relationships between products (which can be in complementary contexts or within one category). For example, if you sell shirts, you can offer tips as well.
- Make sure the total price (after adding complementary products) does not exceed the purchasing power of consumers.
- Display cross-selling products on related product pages.
Another method that is quite popularly used in the cross-selling method is Bundling. With this method, you unite related products into one package, then sell them in one package/bundle.
What makes product bundling attractive? Usually, the price of bundling products will be cheaper than the price of products sold individually.
For Effective Cross-Selling
Consider the price
Price is an important element in purchasing decisions. Giving the best price on a product or cross-selling bundling package will increase the likelihood that the product will sell well.
Make sure the price applied is a “win-win solution” for you and the buyer. For example, you are a mobile phone buyer. When you buy a cellphone through an online store, the seller offers the cellphone case as well.
At first, you agreed, but after seeing that the price offered did not match the value of the item, of course, you would think twice, right?
This is one of the important principles that you need to adhere to when implementing cross-selling. Complementary goods that you offer must have a price that matches their value.
Even though it is “complementary”, consumers will still consider the price.
Get to Know the Buyer
Knowing the buyer is knowing the purpose and background of the purchase. Knowing your buyer can allow you to make additional product suggestions that are more relevant.
You can identify buyers by paying attention to their habits, starting from what menus are ordered, how long they spend, when they usually visit, and so on.
If consumers are offered an irrelevant product, will they be interested? If so, the chances are very small. It’s a different story if the additional products offered still have something to do with the products they buy.
That’s why make sure every offer you make is in the right place. So, the additional products that you offer are indeed needed by consumers.
Know When to Offer
Knowing when is the right time to cross-sell can increase your chances of success. Make sure to know the exact time according to the characteristics of the business.
For example, if your business is a mini-market, then you can apply the cross-selling technique when the buyer is at the cashier to pay. Another example is the waiter can offer additional orders when the restaurant diners have finished deciding on the menu they have chosen or during the process of choosing a menu.
Strong Reasons To Buy
When you provide a cross-selling offer, there is a possibility that consumers are still unsure. You can reduce this doubt in two ways:
- Take advantage of limitations. Give discounts on bundling products or premium products for a limited time. Or, display info regarding the amount of stock (such as “3 items left”, and the like).
- Explain the opportunities they missed. You can explain the benefits that consumers will not get if they don’t buy the cross-selling product (example: “If you don’t choose Package X, you will miss the opportunity to collect this limited edition exclusive mug.”)
These two tips can strengthen consumers’ reasons to buy.
Product Combination Test
Do you want to know what products attract consumers’ attention and make them decide to buy them? Do a product combination potency test.
In this case, try applying A/B testing. This is a method to find out the best option from the various product combination choices that you make.
With this practice, you can make several product combinations. Then each product combination will be seen in the sales results (based on the most attractive to consumers).
After getting the most interesting combination, you can prioritize it.
Offer Personal Recommended Products
This trick is suitable for those of you who are usually directly involved in running a business, as well as recognizing the profiles of your consumers and customers.
An effective way to implement this unique cross-selling strategy is to offer personalized product recommendations.
When you conventionally make sales and deal directly with customers, it is very appropriate to try this method.
You can directly talk to customers and provide recommendations according to your references. For example, “I also wear this robe, in combination with this veil. The material is soft, ma’am. The price doesn’t break the pocket either.”
Of course, customers will consider it, especially if you can convey it in a polite and attention-grabbing language.
In carrying out a cross-selling strategy, good communication is also needed so that users can be tempted to buy additional products.
Example of Cross-Selling
- When shopping at the mini market, the cashier will immediately offer “Tolls, Sis?” or “Would you like to redeem this item cheaply, Sis?”
- Food packages are more varied at fast-food restaurants that combine different products.
- Food packages in a restaurant by offering packages for main meals and additional side dishes or other additional products with a smaller value.
- An online gift shop that offers a package with a more different combination of contents, such as cakes, flowers, dolls, or other additions.
- A fashion store, online or offline, offers different fashion products, such as robes and hijabs, dresses, and some additional accessories to enhance your appearance.
- Offer bundling packages when shopping for different types of skincare and cosmetics.
- The existence of related product features in online stores can direct customers to do other shopping products.
Also Read: What is Human Capital: Functions and Types
Do you want to try this cross-selling marketing strategy, Entrepreneurs? You can apply a cross-selling strategy at any time according to your business needs. However, in applying this method, you must pay attention to the price, approach, product function, and the right approach to consumers.