How to Cross-sell Effectively?
19 Feb 2015 | By Jane
Topics: Effective Cross selling
With the current level of the competitive market, it is getting very difficult to acquire more customers in all seasons of time. So people are looking for more techniques to cope up with the market changes. Cross-selling is one such idea which could assist you with exactly this scenario. This not only benefits the merchants but also the customers to a large extent.
Through cross selling, a merchant can sell more products to their customers and keep them in contact for more time. The customer here is not being left when he completes a purchase, he again thinks of buying some additional stuff from the same merchant. This brings the merchant to a new level of marketing by selling more of their stuff. The customers are becoming flexible to buy some supplementary products along with the initial purchase and could save more time.
Even though the cost of main purchase is a lot different from the cross-sold product, it still brings a lot of revenue to e-commerce merchants. From a study done at Amazon, they made 35% yearly revenue just from the cross selling. So why don’t you try this idea and make a considerable growth in your outcome?
Here are some tips that could help you with the successful management of Cross-Selling:
- Understand your customers clearly. You should get know about their likes and desires before offering the supplementary products. The accessories suitable to be attached to the amateur photographer and a professional one will be different. You can list out the camera case for former and interchangeable lens in the latter case.
- Relevancy is an important factor to consider while doing the cross-selling. The supplementary item should compliment the main product so that the customer will be eager to buy them together. If they are unmatched, it could lead to a negative perception towards the company.
- Pass the message legitimately. The recommendation labels you select should sound natural and pleasing. It should catch their mind like it is an advice from a legitimate hand. Use labels like “Customers who bought this item also bought” or “Frequently bought together” which are the prime examples from Amazon and is being followed by a lot of other marketers.
- Selection of items. You should be cautious about what you are choosing as supplementary products. Customers might have already fixed a budget before making the purchase so they won’t be ready to spend double the money. Always choose products which cost less than 20% of the main product. Also keep a limit about the no: of items you are listing. An overwhelmed list could make the customer make them confuse and may even abandon the whole purchase.
- Offer only quality products. Don’t intend on clearing out your goods through some cheap sale method. Only attach the product which is of high quality just as the main product. If a customer got a negative feeling about the credibility of the product this will affect your reputation very badly.
- Understand your customers clearly. You should get know about their likes and desires before offering the supplementary products. The accessories suitable to be attached to an amateur photographer and a professional one will be different. You can list out the camera case for former and interchangeable lens in the latter case.
The main tip to make your customers delighted is by offering products which they actually seek for. This can, in turn, create a positive perception towards the company. If you are an existing business person having a web store without the idea of cross-selling, remember that you are missing an additional revenue.