Most companies look for a way to increase profits. If you own your own business and margins are razor-think, there’s a tactic top retailers have used for decades called cross-selling…and it works! If you want your customers to spend more money on products or services related to a featured product, then you need to cross-sell.
In fact, cross-selling is so popular I can guarantee you’ve been sold to in this way multiple times. Odds are, most of us have fallen to this tactic a time or two. Have you ever gone through the line at the supermarket and grabbed an item that was conveniently placed near the check-out? That’s cross-selling.
Another example is often seen when buying online. When you get to the check out portion of your buy on sites like Amazon or Walmart.com, do they attempt to pair your order with another? Usually it’s an ad pop-up saying, “frequently bought with” or “customers also bought”. This is an extremely effective method at getting you to spend more money at checkout.
Cross-selling is an Effective Tool
Cross-selling another way is when two products obviously go together, but are sold separately. How many times have you bought an electronic toy, but it didn’t come with batteries or other essential components? You buy a razor, but the cartridges are separate (and generally much more expensive) than the initial item. Or you get a digital camera, but you also need a memory card. What good is the camera without the card? Yet they are sold separately.
When you go through the drive-thru, they are always anxious to add onto your order. Do you want fries with that? An apple pie or two? Want to upsize the drink for a dollar? There’s no escaping it. Cross-selling is everywhere you go because it’s so successful at getting you to buy more than you originally intended.
So how can you use cross-selling to increase your own profits? Here are a few ideas that will help:
-Think about extra accessories that can go with your product or service. There was one cookbook writer whose recipes became viral. So, she decided to release her own brand of sauces. They are related items that can be paired together. Think about a computer which needs a power cord. Or maybe higher RAM, a faster processor, etc.
-If it’s not included in the original package, find a way to bundle it together, even at a discounted price. This can encourage a quicker buy if the customer feels they are getting a good deal. Price the objects separately at a higher price, but together they are a few dollars cheaper. They’ll eat it right up.
-Find a way to demonstrate how the two products work together. If you have the means, to create a video or some other type of presentation that will entice potential buyers. If you can actually see how they work together (or even how they’re designed to be used), they’ll be more inclined to buy.
As cross-selling is perhaps one of the most popular ways to sell more products, you can learn from these examples to make extra profits in your own business. Take your overall process and work backward so you can find ways to turn one product into two or more, then sell them together for more money.