What is Cross-Selling and Why Is It Important?

What is Cross-Selling?

It is an arduous task for an agency to look for new clients to increase their revenue. More than 13,000 agencies are there in the United States alone, and this number keeps on growing. So, you must capitalize on every relationship to make new sales. The best way to do this is through cross-selling.

If you can do it the right way, it adds value to the existing relationship, increases revenue, and establishes credibility.

Cross-selling is the procedure to sell a different service or product to a customer for improving sales value. People often confuse it with upselling, which can increase the functionality and price of the actual purchase.

For instance, take into account a fast-food employee asking you if you like some fries with your burger. That's cross-selling. The fries are complimentary to your burger. However, upsell is an upgrade. So, it is an expensive item or an add-on to the actual purchase you made.

In upsell, the fast-food employee asks if you want a super-size meal instead of your current order, it is upselling. The fast-food joint is trying to sell some expensive versions of the item.

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Cross-Selling Strategies to Use

Regardless of the services you offer, the secret to your success can be approaching the customers. Cross-selling requires a little skill and flair. Make sure that your approach is subtle, or else the customers can put off purchasing your products.

Let's take a look at a few strategies you can apply for product cross-selling.

Strategize on Messaging

You have to find out why a customer bought your product in the first place and the type of products they usually purchase. Also, find out the patterns and demographics you have observed in the past buyers of the same product.

If you spend time digging through this and analyzing the metrics, you can step into the consumers' shoes. Then gauge their real motivation behind the purchases they make. Once you do that, you have a better chance of cross-selling to the past buyers.

For instance, if you are selling beauty products and your buyer is purchasing shampoo, you can cross-sell by suggesting a conditioner to go with it.

You have to give time to think strategically about the buyer personas to appeal to them with attractive messages that speak about your wants, desires, and needs.

Give Out Discounts to Buy More

This is a cross-selling strategy that works. Provide a bundled product for a discounted price so that customers get fascinated by the offer to purchase it with temporary price savings immediately.

If anybody sees an ad saying buy 3 for just $599, they might convince themselves to purchase three items when purchasing only one. This has an excellent success rate as people buy more products than they wanted to purchase.

Another way you can do this is through free shipping charges. For instance, a buyer purchases a pair of jeans, and the cart amount is not high enough for free shipping. So, suggest them to add a few more stuff to their cart to avail free shipping. People are always ready to buy more products instead of paying for shipping charges.

Use Drip Emails

Rather than making an extra sale right when the customer starts buying from you, it is better to wait for a few weeks before selling some other services.

For example, consider a client who is purchasing a web design package from your agency. You can introduce the client to a drip campaign that will introduce them to the copywriting concept and its importance in the first email. Provide your other client's copywriting results in the follow-up email. In the third and final email, you can send an offer for your copywriting services.

This is a subtle approach that helps in cross-selling your products. As you send a series of emails at first, you can tell them about the benefits without seeming too aggressive. The drip campaign automates the whole process and helps save time, and identifies the most productive emails.

Match Services with Client Requirements

Simply because you offer web design services doesn't mean that the client will require a brand new website. Hence, you have to consider your client's goals and how the extra services are relevant to what they want.

In case they aim to increase traffic to their website, you can offer SEO, PPC advertising, or content marketing. Web design can play a significant role in these services. However, you have to factor them into the whole offering and show how the services can cater to your client's requirements.

Thus, you are offering value and aren't selling your client something they do not need to make a profit.

Remind Past Customers Why They Chose You

What is it about the product, services, or company that makes you different from others? And why should customers choose you over your competitors? When you remember this while messaging the customers, it will bring a new sense of brand loyalty.

If you are successful in getting a brand-loyal customer, you have a better chance of retaining them and getting referrals from them.

This is why branding campaigns should not just be used for the top-of-the-funnel viewers who have already heard about the company. Instead, sell all emotion-provoking items to past customers to convert them to lifetime customers.

Product cross-selling is valuable for you, as well as your client. It would be best if you had recurring revenue for your business to grow. However, finding new customers for your business can be an expensive, time-consuming, and complicated process.

This is the reason you should capitalize on sales you make and continue selling to the present customer. One of the top ways to do this is by cross-selling. If you take a subtle approach, time the sale, and create a positive experience, you can squeeze in more deals with the above-given cross-selling strategy. Remember, your ultimate goal is not just to make money but also to keep the customers satisfied.