Cross-selling is currently one of the most used sales techniques today, both helping to expand the market and increase revenue for companies and businesses.
So what is cross-selling, what does it have that are applied by so many people and if you also have the above concerns, then the same. lamchutaichinh.vn Find out through the article below.
Table of Contents
What is Cross-Selling?
Cross-selling is translated into English as “Cross – Selling” and if you have ever studied math, especially Calculus, the word “Cross” must be quite familiar. “Cross” here refers to the Cartesian product that wants to represent that an element of one set can be mapped to any element of the other set.
So “Cross – Selling” is similar to that is a sales technique that makes buyers not only buy a single item, but have to spend more to buy related products or belong to that ecosystem, ie. purchased products can map to many other products belonging to a given file.
In simpler terms, cross-selling helps customers open their wallets but still feel worthwhile and satisfied. This not only helps to increase the relationship between businesses, but also significantly increases the reliability and quality of products, so it is applied quite a lot and is very popular in the market today.
Differentiate Cross-Selling and Upselling
Cross-Selling or Upselling are both sales techniques with the goal of increasing revenue for a company or business.
However, people often confuse them and even think that they are interchangeable, but in essence, the two techniques above still have some differences.
What is upselling?
Upselling, translated into Vietnamese, refers to upselling products in the form in which the buyer, or customer, is persuaded by the seller to use products or services of a higher level than they originally intended, i.e. customers will spend more on upgraded or more advanced versions of the product they intend to buy.
This is a pretty effective technique because it hits the customer’s desire, because basically, when buying, they usually want to have the best experience about that product or service, so if you nominate more accessories, If the price is not too different, the customer psychology will often agree to let themselves have the expected experience.
Relationship between Cross-Selling and Upselling
The relationship between Cross-Selling (Cross-Selling) and Upselling is as defined above, cross-selling is how to convince customers to buy more related products, and with incremental sales, redirect customers from basic products or services to a more advanced, feature-rich version than they intended to buy.
To put it more simply, Upselling is just selling vertically, providing high-value service packages and directing buyers there. With Cross-Selling, only horizontal selling means a set of related products lined up in a row and it is integrated together to push the customer experience to the best level.
In order to help lamchutaichinh’s readers better understand this relationship, there will be an illustrative example of a phone product – one of the indispensable items or tools we have today because it gives us many useful things and play an important role in work and study.
Going in the direction of Upselling, once you have walked around and selected a phone that is suitable for your eyes and price, the seller will now direct you to more advanced versions with a price difference that is not too much, so that you can get the phone. higher configuration phone to meet the current usage target. Basically, they just want you to spend more but still feel like it’s worth the money.
As for the Cross-Selling direction, when you have chosen to buy yourself a satisfactory phone to expand the experience, the seller will introduce more products in the market of electronic gadgets. phones, such as headphones, bluetooth speakers, smart watches, spare batteries, etc. This clearly shows that cross-selling is providing additional products used together with the original product to increase order value.
Cross-Selling, the situation where it applies is quite a lot and common, if you are a product buyer, then you must read here, you can imagine that you come across many cases where the seller applies as much as how. But for more detail, lamchutaichinh provides a few more examples so that you can understand the principle of this trick.
For example, when you walk into a fast food restaurant, for example, if you order fried chicken, the staff often advise you to add some side dishes such as fries or hamburger or sometimes a soft drink to accompany you. Eat in the most delicious way. Or if you go to coffee often, they often sell breakfast or a cookie so you can enjoy the coffee while sipping while chatting.
Thanks to this cross-selling strategy, the fast food industry or the cafe has just sold more products, because customers spend more on the side dishes and services they have bought, so the revenue grows quite high and is applied. quite common use.
Evaluate the advantages and disadvantages of Cross-Selling activity
Cross-selling contributes a lot of benefits to companies and businesses, but any method has its own advantages and disadvantages, depending on how we apply it.
Here are some advantages and disadvantages of cross-selling:
- Cross-selling helps to increase sales without too much effort.
- Capturing customer psychology, thereby improving satisfaction.
- Not only beneficial for the business, but also the customers feel their benefits.
- Help customers know more products related to the ecosystem so that they can enhance the experience with the original product.
- For B2B businesses, the lifetime value of the customer, or CLV, increases significantly with the consolidation of the customer’s business.
- Sometimes making customers feel uncomfortable by offering products that they no longer need, so it is easy to cause inconvenience and easily reduce satisfaction when serving.
- In case the planning for products in the ecosystem is not reasonable due to inappropriate marketing data such as introducing accompanying products that users rarely use, it is not too effective.
Meaning of Cross-Selling
Cross-selling really works best in the e-commerce environment and has an important position, because it requires sellers to list or identify the right groups of related products to create produce a series of accompanying products to diversify products and increase revenue.
Based on that, the company itself or the business can propose incentive programs suitable for cross-press, helping customers to comfortably buy products with the original so that cross-newspaper can reach customers. quite effective but without too much effort.
Regardless of the form, the goal is still to increase the revenue of the business or the company and cross-selling has confirmed that because it has to convince customers to buy other spare parts, moreover, still keep the satisfied mentality. and worth buying from customers without wasting anything.
Helping the company earn high profits, increasing revenue thanks to the large number of sold items but not too much business expenses.
Increase customer experience, convenience and lifetime value
This is quite important in marketing customers how to buy and still see the value of the accompanying product and help them see the attachment to the product.
And when they already love your business’s products, they will be quite loyal and continue to buy other products in the ecosystem, thereby increasing the lifetime value (CLV) of customers.
Because there is an entire ecosystem that comes with the product, it helps them see quite enough of what they are looking for and helps customers feel more impressed without having to go far to buy outside of your business.
Thanks to the increase in user experience and focus, the cost of maintaining old customers does not need to be too much investment, so revenue and profit are saved significantly.
Strategies and techniques for cross-selling in business
Cross-selling strategies typically occur in three stages:
- Before selling: Research the appropriate strategy to propose products that you can go together and especially those products that can support each other to increase the use of customers.
- While selling: Marketers or salespeople need to analyze the pros and cons if there is a lack of products related to the purchased sample so that customers can think that it is reasonable and right to add more.
- After selling: After completing the sale, you can save the customer’s phone number or email if possible to notify them of accompanying promotions.
When does cross-selling work?
Cross-selling works best when:
- Cross-selling products need to be researched according to the operation and use of the product the customer has purchased.
- Expand more products so that if customers have a need, they don’t have to spend time searching.
- Provide promotions with attractive prices to increase customer choice.
- Convey the necessary products for customers to understand and trust to buy together.
Hopefully, through this article, lamchutaichinh’s readers will be somewhat clearer about cross-selling and can then apply it to their own businesses. Hope you will still accompany lamchutaichinh in future posts.