Would you like to increase your online store’s profits by 10%, 30%, or even 50%? Could a small adjustment make this?? Some of the world’s biggest companies like Amazon, and Walmart have achieved this result. They have leveraged the cross-selling strategy to boost their eCommerce sales.
If you’re not doing it yet, you should be. In this article, we’ll look at what is cross-selling, why you need it, and tactics of cross selling
Latest Update: We’ve just released the version 2.0 of Claue Multipurpose Magento 2 Theme, with with a bunch of performance improvements and exclusive features. Check this theme out now: Claue Magento Theme 2. 0
Claue – Clean, Minimal Magento 2&1 Theme is an excellent template for a modern and clean eCommerce store with 40+ homepage layouts and tons of options for shop, blog, portfolio, store locator layouts and other useful pages. Claue version 2. 0 comes with a bunch of exclusive features including:
- Being based on Luma theme.
- Meet all standards of Magento Theme
- Significant performance improvement
- Compatible with most third-party extensions.
- Fully compatible with Magento 2.4.x
This second advanced version completely differentiates from its previous one. Thus, if you are using Claue version 1 and want to update to Claue version 2, you can only rebuild a new website no rather than updating from the old version. Now, let’s get back the main topic.
1. What is cross selling?
Cross selling is a strategy to get a customer to spend more by purchasing a product that’s related to what’s being bought already. It is often confused with upselling which is the strategy that increases the price and functionality of the original purchase.
For example, you buy a burger at a fast food restaurant. The employee here ask if you want fries with it. This is a cross selling. The fries are complimentary goods to the burger.
>>> Read more : Cross selling examples, strategies for your ecommerce business
2. How does cross-selling work?
Another example about the cross selling that you can think of in the fashion store. There is something like a pair of jeans that can go along with a sweater that the customer is already interested in.
Cross selling comes in some different formats:
- Related products: Although those two products don’t necessarily go together, they attract the buyer and can go hand to hand.
- Complementary products: An item that goes directly with the primary product. These might be batteries for a toy or ink for a printer.
- Service: Another way to cross selling is by offering services that customers can add to their purchase. Although not every business has a service to cross selling, service is the popular option for eCommerce stores that offer warranties and protection plans.
Some best practices for cross selling:
- Recommend the accessory required for the appropriate operation or use the product purchased. For instance, the employee suggests a customer buy a power cord for a computer printer that doesn’t include one in the box.
- Bundle the related products so the customers don’t need to look for necessary components or accessories.
- Offer a discounted price on a bundled product. This encourages customers to purchase immediately with temporary price savings.
- Demonstrate how the additional products work with the product being purchased
3. The benefits of cross selling
Revenue generation
Incorporating cross selling in the process can help your business generate more sales and higher revenue. Because it maximizes every call made with the customers by offering them any possible products that can go with their original purchase.
Cross selling builds customer loyalty
Through the cross selling, your business can get the customer’s actual needs and then improve their experience with your products. This process can be as a commitment to provide a more personalized service than a tactic to increase profit. That helps your business increase customer loyalty.
Cross selling develops more leads.
When you have loyal customers who feel cared for, they will be the first to recommend your service to someone else. Therefore, you not only get more leads but also get the best kind of leads- referrals.
4. Effective cross selling tactics
Know your customers before cross selling
The relevant products may differ for different customer groups. For example, cross selling offers of cameras for professional and amateur photographers will likely require different supplementary items. You can offer interchangeable lenses in the first case, and a camera case – in the other.
Sell only relevant items
Make sure that the offered additional items complement the original product or create additional value with it. In contrast, irrelevant items just distract your customers and create useless informational noise.
Make your cross selling offers sound natural
Customers often appreciate valuable advice rather than urging calls. Therefore, you should create easily perceived and neutral enough names for your cross selling promotions
- If you want to make your recommendation labels a bit more different, note some valuable tips:
- If using appeals, make them more personal:“ You might also like these” instead of “we recommend”
- If use emotional verbs for your cross selling: need, want,.. For example “need accumulator?” , “Want headphones?”
- Using cross selling appeals with urgency notifications; “Only two items left” or “offer ends soon”.
Offer a limited number of relevant items
An overwhelming choice of relevant items makes customers confused and even can lead to the abandonment of the initial product. Therefore, you should offer only one or two relevant additional products in your cross selling promotions
Do not offer expensive additional items
The price of supplemental items should be directly correlated to the price of the initial product. Because the customers often have plans to spend a definite amount of money. For example, they psychologically are not ready to exceed it twice. Then you can offer only the items which cost not more than 25% of the initial product price.
Offer only valuable items rather than just clear out your stock.
The additional items to the original products should have their own high values. It is clear to your customers. This enhances the credibility of your store and makes customers trust your suggestions. If you provide some damaged or defective products, let your clients know this. Otherwise, you run the risk of losing the customers.
Combine cross selling with other marketing incentives
In order to promote the cross selling, you can combine it with other marketing incentives like discounts, coupons, or free shipping.
Use bundled products
Bundled products are a common tactic to convince customers to purchase the whole set of complimentary products. With the price breaks, this tactic will work great and allow you to sell even stuck items. And these items would possibly be never bought in other situations.
Invest in website themes
Magento themes are excellent templates for modern and clean ecommerce stores with 11+ homepage layouts and tons of extensions. They support your cross selling promotion effectively, it’s time to get started!
