12 Useful Tips for Successful Cross-Selling
The current level of competition makes the acquisition of new customers a very challenging task and, it’s no wonder that, merchants try to increase repeat purchases and the AOV by all means.
Cross-selling is one of those advantageous marketing methods, which makes it possible. This marketing tactic obtains several benefits valuable not only for merchants, but for customers, as well.
Advantages of Cross-Selling
Benefits for both sides
Cross-selling is profitable for sellers as it allows them to sell more, closely tie customers to their products, and make them purchase again. However, it is also advantageous for customers since they can buy required supplementary products in one place and save time.
Sellers get more sales
Even though, the price of related products can’t be compared to the price of the original purchase, if properly arranged, cross-selling can draw really substantial revenues. For instance in 2006, Amazon reported that tremendous 35% of the year’s sales came from cross-sales. This example confirms a great potential of cross-selling marketing for e-commerce.
Sellers retain customers and extend their lifetime value
Customers perceive unobtrusive cross-selling products as useful and sometimes necessary add-ons and therefor positively treat them. As a result, sellers can gain more trust and extend the lifetime value of each customer.
Nevertheless, any marketing method has some restrictions and effective ways to be successfully implemented in practice. Below you will find 12 tips, which can make your cross-sells even more efficient.
Effective Cross-Selling Tactics
Know your customers before cross-selling
Relevant products may differ for different customer groups. 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.
In 2006, Amazon reported 35% of the year’s sales came from cross-sales. Source: Amazon
Sell only relevant items
Make sure that the offered additional items complement the original product or better create additional value with it. Irrelevant items just distract your customers and create useless informational noise.
Make your cross-selling offers sound natural
Customers usually higher evaluate a valuable advice rather than urging calls. So, you should create easily perceived and neutral enough names for your cross-selling promotions: “Customers who bought this item also bought” or “Frequently bought together”. These are the axiomatic examples by Amazon, which were successfully tested and accepted by multiple marketers worldwide.