Cross selling: what it is and how to use it

Cross selling

Have you ever heard of cross-selling and up selling? These are known strategies that generate sales leads. They make the most of the customer’s potential through the establishment of a trusting relationship.

Cross-selling, also known as cross sell, consists of offering complementary products. This strategy can be confused by many with up selling – in this post, you will know the differences between them!

For cross-selling to give results it is necessary to know how to use it. Read on and find out how!

After all, what is cross-selling?

Cross-selling is a strategy that offers customers complimentary products, whether for those who have already completed the purchase or for those who are still in the sales process.

Cross-selling increases business opportunities, giving the customer a more complete experience, in order to meet their needs.

Therefore, the idea is to offer products that are related and, therefore, make sense for the customer to purchase.

Don’t confuse cross-selling with tying. Offering complimentary products is not the same as linking the contracting of one good or service to the acquisition of another. This type of sale is normally part of the customer journey and can be used by companies of different segments and sizes.

Another advantage is the CAC (Customer Acquisition Cost), which is used to measure the profitability of a new consumer and, in cross-selling, it is very low.

The sale takes place without major investments, as the same customer gives a greater return, increasing the LTV, that is, the lifetime value of the consumer.

How to use cross selling?

1.Complementary products cannot greatly increase the purchase price

As stated before, cross selling is different from tying. Therefore, for the strategy to work, it is necessary that the company does not offer products that increase the value of negotiations by more than 25%, when compared to the initial proposal.

Otherwise, the probability that the customer or future customer will reject the purchase will be very high, and will not purchase even the initial product.

2. The ideal is to sell, then start cross selling

To prevent the customer from giving up on the purchase, the best option is to sell the “main product” first and only then offer products. It is also not necessary for cross selling to happen right after the purchase.

Complementary products may be offered at intervals. With this, you also create an opportunity to contact the customer several times, giving him the desired solution or indicating some useful product.

In this case, a little more than 25% of the recommended initial offer may be requested. On the other hand, it is also ideal to think of ways to encourage the customer, such as exclusive conditions, discounts and trial versions.

3. Don’t force the purchase of complementary products

Cross selling doesn’t mean that you should be pushing, insistently, offers that your customer doesn’t want.

The insistence can upset the buyer, causing him to give up or not buy again, thus causing a strain on the relationship between the company and the consumer.

Think first of all about the goal: to improve the customer experience. This will be jeopardized if there is an exaggerated insistence on offering products. Put yourself in the consumer’s shoes.

4. Perform testing and measurements

Cross selling is a sales strategy. Like any other, it requires measurement of results and tests. You need to know what works and what doesn’t please customers.

So you naturally discover the most successful complementary products and ways to convince customers to buy them.

Create history and measurement data. That way, you’ll know the sellers with the most persuasive power for sales and offers that work, as well as other relevant information, including test results.

The ideal is, therefore, to test and make measurements to adapt cross selling to your business.

5. Train your team to make a good customer service

Training your team is always essential to succeed in conducting sales. In this aspect, sellers must be aware of what is cross selling, being necessary to inform them about strategies and give tips to sell complementary products.

In addition, your team must have the capacity to efficiently execute the SAC, the Customer Service. In cross selling, customer service goes beyond clarifying doubts, acquiring information and solving problems.

The SAC also helps in identifying the buyer’s pain and needs, in addition to being an interesting space to offer complementary products that solve the person’s needs.

During this service, the seller can present a commodity useful to the recent purchase in a natural way. The ideal is not to be passive in the service, but also not to be invasive. Know that a good value of the complementary product is essential for cross selling to work through the SAC.

6. Define which are the best complementary products

Cross selling will only work if product offerings are really effective for customers. It is necessary to know the pains and problems of the consumer, to be able to create solutions. After all, it follows the same pattern as a normal sale.

It is essential to know your customer’s needs not addressed by the product purchased initially and prioritize the customer experience. Remember that often he may not even know what solutions he needs. Guide him.

Differences between cross selling and up selling

Cross selling and up selling are well-known strategies, so when you hear about one, the other will probably also come to the fore. This is mainly because cross selling can lead to up selling. But there is confusion about what is cross selling and up selling.

Up selling seeks to make the customer consume a higher value in the store than planned, instead of offering complementary products. In this strategy, the focus is to present options with greater value right at the initial purchase.

They are then shown products that are more modern, updated or with additions that, at least initially, were not sought by the buyer and, consequently, are more expensive. Cross selling is often the gateway to ups selling.

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