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3 Ways “Cross Selling” Will Boost Profits at Your Retail Store

Ways “Cross Selling” Will Boost Profits

Learning the basics of cross selling can bring home a big boost in revenue.

Cross selling works in many contexts. If a business offers a line of products that work well with each other or enhance one another, then cross selling can be put to use.

Cross selling simply describes the act of selling an additional item to a customer who is already making a purchase. An example is Amazon’s programmed “Frequently bought together” feature. Doing it well is a win-win for everyone involved: customers have the convenience of handpicked products, and businesses see boosted revenue.

This tactic can help a seller build a stronger bond with their customer base, although doing it poorly can have the opposite effect.

Here’s why it’s worth the time and effort to learn how to cross sell the correct way.

1. Customers love it.

Good cross selling leads to a better relationship with customers.

By taking the time to figure out what additional products a customer might appreciate, the customer will feel well cared for. Customer loyalty will be built up in the process.

Building a connection with customers will help you hold onto them, and customer retention is incredibly profitable.

Think about all that went into getting that customer in the first place. By working a little harder to keep them coming back, there’s less work to do in chasing new business.

Statistics abound on the benefits of keeping customers, with a report by ThinkImpact stating companies report that up to 75% of their business comes from retained customers.

Providing suggestions for additional purchases that are relevant to them is also convenient to the customer, and everyone loves convenience.

2. It’s great for revenue.

The benefits of a successful cross-sell are obvious; more products are being sold.

A 2022 HubSpot Blog survey of more than 500 sales professionals showed that the 74% who cross-sell report that those efforts have driven up to 30% of their revenue.

Consider that money is also being saved when you have to rely less on the effort of acquiring new customers. Encouraging current customers to spend more is bringing in that extra income.

3. How to do it right

Sales professionals may be hesitant to try cross selling for fear of it backfiring. There is some risk; being too pushy can drive customers away.

However, there are lots of tactics for getting customers to add more to their order without coming across wrong.

The biggest overarching piece of advice is to evaluate past sales to better predict what customers might want to add to their purchase. Consider the purpose of their purchase and what might best complement it. Offer products as solutions.

There are many ways to incentivize customers to step outside of their comfort zone and go for products they might not usually.

Offer package pricing. Advertising bundles of items gives customers a reason to buy more than they came for. On top of that, it capitalizes on the convenience that makes cross-sells so great for customers.

As an example, Advance Auto Zone advertises customizable oil change bundles. Customers are able to get everything they need in one stop at a discounted price.

Go a step farther by collaborating with other businesses for package deals. Hotels can team up with travel agencies to increase both of their profits through better exposure.

The store I work for has a no-questions-asked return policy to combat hesitancy over trying new products. It gives us the freedom to encourage extra purchases without the threat of it being a wasteful spend for the customer.

The most important thing for a cross-seller is to know what there is to offer. Know what customers have liked in the past and what products could improve their experience, and sell with confidence.