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Cross Selling as Part of Your Marketing Strategy
Generally when small business owners think about generating more sales, they think about going out to find ‘new’ customers. That’s fine, but what about the current customers or the ones at your business today?
Your Marketing is Already Paying Off:
Cross Selling is taking advantage of the fact that If you have customers at your business or website today, then the basic parts of your marketing strategy is working. That would imply that you also have a list of customers who have already purchased from you in the past, correct?
Then why not consider methods of marketing to your clients and customers who have alreay purchased? We talked about upselling or upgrading your customers; You know, the most popular upsell that we’ve all heard is ‘Will you have fries with that?’. So are you offering fries? You better start because the rule of thumb that applies to marketing costs is that it typically costs you (the business owner) 5 times more to market and sell to a new customer than it does to sell to an existing customer.
The Cross Sale:
Although similar to upselling or upgrading, cross selling is more about selling your clients products or services that may not be directly related to what they have already purchased.
Basically, this marketing strategy boils down to educating your customer. Sometimes you need to take the time to educate your current customers about all the different ways you can service them.
You are so familiar with your business and the products and services you sell, that you assume your customers are just as familiar. When you start to ask, you will quickly find out that it’s not always the case.
You can start to take advantage of cross selling when you change your marketing strategy to contact your customers from time to time with something as simple as a post card or flyer that reminds them of all the different products or services you offer.
Be sure that when you’re talking to them that you remind them of different or particular products or services that they may not be familiar with. In fact, you could select a product or service of the month where every person in your company is reminding customers of a particular product or service. You may consider making it a feature of the month.
Just remember that customers can’t purchase what they don’t know you sell.
Why is Cross Selling Different than
Upselling Or Upgrading?
When you consider upgrading or upselling, typically you think in terms of products or services that can be bundled or when you are presented with a ‘good, better, and best’ selection.
If I were purchasing a new stereo, I would consider it an upsell if the company representative demonstrated the base model, then the upgraded model with better quality components and finally the best model available at the time. The upsell is typically right in line with the product being purchased. We could continue to talk about other upgrades like warranties and other related ‘maintenance’ items that could go with the new stereo, but let’s take a closer look at the difference between the upsell and the cross sell.
The cross sell would be considered as a less structured offer. If I were shopping for a new bed, most stores would be happy to sell me a mattress and box spring; possibly a new bed frame for it too! Now what if that same store took the time to ask me about other products that are related, but are not necessarily bundled together. Consider other related products like:
- Bedding and Sheets
- Comforters
- Pillows and pillow cases
- Lamps and lamp shades
These are products that are not as easy to bundle because of personal preferences and (in some cases) decor and color schemes that will effect the final product selection. The Cross Sell part of your marketing strategy is offering clients the option to purchase non bundled related products that they can select individually. In some cases, clients may only purchase new pillows; in other cases, it may be several sets of new sheets, pillows and comforters. You will never know until you change your marketing strategy to include the cross sell.
Add Fuel to Your Cross Selling Marketing Strategy
Now consider if the store selling the bed offers a time sensitive cross sell at a discount? That is, a discount if the customer purchases the other items at the same time.
Whenever there is a sense of urgency, you stand a better chance of making a sale. The concept with adding fuel to your cross selling is that you offer other related products at a discounted price if the customer purchases them right now, at the same time they are purchasing their new bed.
Make Adjustments to Your Marketing Strategy to
Cross Sell Related Products & Services
First and foremost, remember that new customers may not even be aware of the fact that you sell other items. Making that information known alone is a must that your marketing strategy must include. Then consider creating a check list for each of your major products. That checklist will serve as a great reminder so that you don’t forget about any of your products.
On your website, be sure that you are listing related products on every product page. No matter what product you’re selling be sure that you’re introducing your visitor to related products that go well with the one they are considering. After all, there isn’t anyone that knows your products and services like you do, right?
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