The mission of cross-selling or cross-sellingIt is none other than trying to increase the number of products that a customer buys from a company.
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What is cross-selling?
It is a sales tactic, which basically consists of making a suggestion to the customer, when he has decided to buy a product so that he can buy other complementary products on sale to the one he is about to buy.
A very clear example is when a notebook or laptop is sold, in which other products such as a wireless mouse, the Microsoft Office package, a warranty extension or even a wireless headset can be offered.
Cross-selling can be done through e-commerce.
Cross-selling has certain rules that, if followed correctly, can offer you great opportunities to succeed in this market.
The two main rules are:
- The products offered must have a complementary relationship with the product they are acquiring, that is, if you sell a soccer jersey to a client, you can offer them shorts, socks and perhaps even new shoes to play with.
- Cross-selling offers must cost the buyer a lower cost than the main product to be purchased. There is no established rule but the cost of the products offered in cross-selling must not exceed 30% of the total cost of the main product, that is, if I am selling you a laptop, I would not offer you a Tablet, which may be a complementary product, but it amounts to a value very similar to that of the computer.
A great sales technique
Cross-selling is an excellent tool when it is done correctly and this implies, if we rely on the e-commerce or ECommerce market, that they must improve their analysis systems to offer a detailed search very similar to the product you are looking for based on previous experiences and personal tastes.
The main idea is that you recommend something to a customer that you know they will like based on their habits and previous shopping experiences, in such a way that cross-sell offer products based on user profile and that each one sees different products in cross-selling.
Habitually, most online stores have cross-selling services, But in a very rudimentary way, very far from what platforms such as Facebook achieve, for example, which, based on your Likes and personal tastes, offers you specific products that it knows are to your liking, ensuring those who are promoted, that your message will be spread among the people who are most likely to purchase the product.
Cross-selling has always had a high impact, since it is one of the best sales tactics, to convince the customer that the product that is about to be taken could be complemented with small additives that would slightly increase the price and benefit the efficiency with which you will use the main product.
It is by far one of the most efficient techniques since, the customer always seeks to acquire the best, or the cheapest, A balance between the two is ideal, but when you are about to buy the product and they tell you that it can be protected with an extension of the guarantee or a special protection cover, the customer begins to appreciate that their main purchase may be exposed to possible problems, or maybe it could have complementary products and is quickly seen as an excellent option, purchase other products to ensure that our purchase was successful.
- Most of the customers who buy using this method do not know all the products that you usually handle.
- They usually buy one or two products, not knowing that you can supply them with many others.
- The additional sales that you can perceive are many, just for telling the customer that in addition to what can be seen at first glance, your store or company offers many more products than those it is about to take away.
- If you have a musical instrument business for example, and you also offer private guitar lessons, it is important that you use ways to make this known to the customer.
- If you have a jewelry store, but you also have a tailor-made and made-to-order service, tell your clients about it, many times we do not know what the problem they want to solve is and we offer alternative solutions that do not correct the root problem.
- If you are an English teacher, mention to your students that they are somewhat behind, that you can give personal advice at home.
If you have a country hotel, mention on the internet and through various means that you also offer motorcycle rentals, excursions and zip lines to name examples.
- If you have a restaurant, but you also attend private events, you have to let your customers know.
The principle is that you should not feel indispensable to the customer, nor that he knows the characteristics of all the products you have. You have already achieved the most complicated thing, selling him, now it remains to convince him that what he is about to buy, is incomplete or defenseless without other complementary products.
Make the invisible more visible, Take care of promoting the least-sold products, because what we do best is to promote what is sold easily, of course, it does not involve any effort, practically people come looking for it, but complementary products are often not so popular. that you have to take care of.
The risk of cross-selling
Focusing only on the products in demand is a great risk. If the sale of one of them falls due to market cheaper by unfair competition and with this the company's sales fall.
The importance of selling complementary products:
- Complementary products generate greater profitability, since they solve very specific customer needs.
- They are markets with a lower rate of competition.
- A great opportunity to become the dominant seller, having the exclusivity to sell the product.
- Balance your sales without depending so much on the most popular products.
- Leaving the routine operation of offering the same 5 products or services can lead to a successful temporary performance, but when the demand for this product drops, your sales will plummet since it is your main source of income.
How to promote the sale of not-so-popular products, for cross-selling
These products have never appeared on the commercial radar, you need to give them a boost to push them into the market.
Consider creating distribution and dissemination channels, such as social media, online sales or taking the product to a specific point, to expand your impact in the market.
- Look for complementary ones, such as institutions, companies or businesses.
- Encourage the sales force to promote the products that have the highest profitability and profit.
- Adjust seller commission tables so they get more resources if they sell the least-selling products.
- Reinforce training on the benefits and solutions offered by products that do not sell as much.
- Appoint a dedicated sales representative for a product line with potential.
- Develop combo-type promotions in which by taking 2 or more products you get very considerable benefits or discounts.
- All this together will encourage the purchase flow in these products that do not currently have so much impact, thus distributing your profits from more products, reducing risk.
To communicate cross-selling
It's fundamental run promotions frequently, in which, for a limited time, you have the opportunity to acquire a main product that you have been looking for a long time, with its respective accessories that will help the enjoyment, use, protection and better use of the main product, at least it is what you have to convince the client that your product solves the need, whatever it may be, and if it does not yet exist in the client, generate it.
You can constantly send emails updating your customers of your latest products or modifications in them, it offers benefits for those who acquire new products for the first time.
Correctly train the sales team, it is the best way to spread the products that are not sold as much, since, if the sales force is well trained with the information and the technique to sell the less sold products, they will communicate to the customer that it is crucial that they acquire the products Complementary while doing the main one.
It is also elemental take advantage of social networks to advertise your products and perhaps contact an influencer to promote your product, it is well known that everyone follows the trend when influential people in society use certain products or services, giving confidence to those who see it, that what you sell is of quality.
It is about generating a need in the client, and at the same time offering him the immediate solution for a lower cost than what he paid for his product, but that will help him make the most of it.