Cross-selling is a great way that you can use to capitalise on your existing customer base. Just think about how many times you’ve gone to the supermarket for one thing and ended up coming out with a trolley full? Your online store should also be taking advantage of this aspect of shopper behaviour.
Here are our essential tips to ensure that you are making the most out of your sales opportunities.
Only cross-sell when you have all of the necessary information – Make sure that your customer can make the original purchase that they were after before you try and cross-sell them another product. If you try to cross-sell too early, you may put people off.
The 25 rule – Any additional sale should not increase the overall sale by more than 25%. This helps you to not exceed a mental barrier that people have about how much they are willing to buy in any given transaction.
Profit – Make sure that the effort that you put into cross-selling is matched by the profit that you are making. Don’t make extra work for yourself if the payoff is not profitable.
Cross-selling not jumble selling – Don’t just use cross selling to get rid of unwanted stock; you’ll diminish the trust that your customers have in you and you could end up putting them off the whole sale. If you’re getting rid of discontinued stock, be honest and let people know.
Only sell what is appropriate – Don’t use cross selling to get rid of weird and wonderful items that have no relation to the original purchase. If you sell someone a shirt, try selling them a tie, not a glow in the dark penguin ornament.
Sell familiar items through cross-selling – Don’t try and sell new products to people through cross selling. They won’t be at the right stage in the sales funnel to buy something without knowing the features and benefits. You need to sell something that they are already aware of and may have already considered purchasing for themselves to be more likely to make a successful cross-sale. Likewise, try to cross-sell products from the same brand so that people can feel more comfortable in their decisions.
Planning for Performance – Make sure that you have thought about what products will sell with others. For example, don’t sell a pink shirt and try to add on a green tie.
Automate where you can – Automating your cross-selling process can make it much easier. Use data gained from previous sales to see what products should be bundled together in a cross-sale promotion.
Incentives – You can often sell more by having free shipping for orders over a certain amount. If your bundled items take the sale to this point, it can be the nudge that is needed to finalise the decision.
For more information on how you can increase sales from your existing customers, please get in touch with Elementary Digital today.