What does cross selling mean?
Cross selling is a marketing technique that involves selling related products to a customer who has already purchased a different product. For example, a customer who buys a computer may also be interested in buying a printer, software, or other accessories. With this, businesses can increase their sales and improve their customer relationships.
“ When it comes to increasing the Average Order Value, there are many levers you can pull. One of these levers is cross-selling: the sale of another product or the bundling of complementary products in order to offer the customer an additional benefit.”NADINE ZIRBES, SAAS EXPERT
To cross-sell products can be a very effective marketing strategy, but it must be used carefully. If done too aggressively, it can alienate customers and damage the reputation of the business. When used correctly, however, it can be a valuable way to increase sales and build strong customer relationships.
Up selling vs cross selling
In general there are two main strategies: upselling and cross selling. Upselling is the sale of a more expensive product or service than the one that was initially purchased. Cross selling, on the other hand, is the sale of a product or service that is related to, but not necessarily required for, the first product or service that was purchased.
Why you should consider a cross-selling strategy
Any business owner knows that in order to be successful, you need to attract new customers. However, acquiring new customers can be a costly and time-consuming process. A more efficient way to grow your business is to focus on cross selling to your existing customer base. By definition, it is the practice of selling additional products or services to an existing customer. It’s a strategy that can be very beneficial to your business for a number of reasons.
First, it can help you boost your sales, revenue and average order value (AOV). If customers buy multiple products from you, they’re likely to spend more than if they only buy one product. Second, it can help build customer loyalty. When customers buy multiple products from you, they’re more likely to become loyal, repeat customers. Finally, you can differentiate your business from your competitors. If you offer a wide range of products and services, it’ll be harder for customers to find a comparable offering elsewhere.
Benefits of cross selling:
- Elevate your sales, revenue and average order value (AOV).
- Increase customer loyalty by suggesting related products that they might be interested in.
- It is a way to make your business stand out from other businesses that sell similar products.
Efficient cross selling with RetentionX
To do cross selling effectively, you need to know which products are often purchased in combination. This way, you can stick to the preferences of your consumers and offer them an additional benefit with each purchase.
Among others RetentionX offers recommendations on the best cross selling strategy for each product. It also allows businesses to track their progress and measure the success of their efforts. It is especially important for products that have a high value but are not purchased often.
The given report of RetentionX will help you answer the following questions:
- Have your marketing activities been successful and increased the average order value of your customers?
- What are the best products that you should promote together?
- Should you offer different products together as a bundle?
Join us for an interactive, introductory RetentionX demo and see how behavioral segmentation help you optimize your marketing budget.
Start today for free
If you’re not already using a cross selling strategy in your business, now is the time to start. Our usefull reports makes it easy to cross sell products, increase customer loyalty, and boost your bottom line. Schedule a demo today to see how RetentionX can help you grow your online business. The RetentionX cross selling reports are currently available for Shopify, Shopware and BigCommerce.