Cross-selling, what it is and its advantages
Have you ever bought something you really wanted, but in the process you acquired one or more products that, incredible as it may seem, perfectly complement your first purchase?
If your answer was yes, let me tell you that you participated in cross-selling experience that are increasingly common in the world of marketing, and we believe that it is time for you to start practicing this method in your business or company.
What is cross-selling?
It is a cross-selling that consists of offering the customer a product that complements in a good way his initial purchase that the customer has already chosen in order to increase income.
Example: You go into a clothing store to buy a shirt, but in the process the manager offers you a tie that matches perfectly, you think I don't need it, but you like it then you decide to take it.
So you end up buying the shirt, the tie and even some socks that were offered to you at half price.
That is what cross-selling is all about, and although the concept is not new, it has been gaining ground in the corporate world.
Mainly used to increase the profits of the company and be reflected in the ROI.
Cross-selling and its advantages
Allows you to increase sales
By cross-selling and offering more products or services to the customer, in the end the bill could be even higher, which means more profit for you or your company.
Here, by selling an extra service or an extra product, you will save on the training of the new employee, as well as reduce transportation costs, since it is a product that is there with us.
By offering customers a better shopping experience, suggesting products that perfectly complement their initial purchase, they will feel more comfort and attention and therefore will buy again.
The better the customer is treated, the more committed he is to us.
Visibility of more products
Thanks to the use of this method, it is possible to give visibility to products that currently do not have as much impact on the company and that we have in the inventory, in this way sales can be generated on these and that they do not remain stagnant.
Cross-selling and up-selling differences
To know the difference between these two, we must have a deep and well-defined concept, but as simple as possible.
When we talk about Up selling, we talk about the fact of selling a more expensive or more profitable product for the company than the one that the client initially intended to acquire.
On the other hand, cross-selling is inclined towards selling the customer something that can perfectly complement their initial purchase, whether it is one, two or X products. In this way, each company must use the correct method to apply one or both techniques, since applying both the benefits will be greater for your business.
That is why it is important to know who your target market will be, and to whom you are going to direct the up-selling and cross-selling, so as not to fail in the attempt.
Are there disadvantages in Cross-selling?
Disadvantage as such does not exist, but if we can give you some advice that can help you, it is about not being insistent and knowing the right time to offer a new product, since if we become a bit persistent the customer can get uncomfortable and leave without buy nothing, so it is better to know when to offer and do it only once.