Cross-selling
Cross- selling (also for Phillips sale, Eng. Cross-selling ) referred in marketing the sale of complementary products or services.
Background
By cross- sales, sales per order can be increased. In the marketing strategy of this term is often used in a much broader context. The aim is to ensure that a total of more different products and services of its product range to be placed at the company's customers. As far as the products and services of its kind must not directly related to the services requested by the customer product. Rather, it is about a holistic sales strategy that encompasses the comprehensive needs of the customer and as far as possible to cover with their own services. The customer is encouraged to buy products that he not asked directly. A part of the assortment is offered for at cost or with low profit margins in order to promote sales of products with higher profit margins. It is often in the reaction according to different experience and purchase situations or similar distinction phases of life. In addition, also include offers in completely dissimilar areas typical cross- selling strategy.
Sometimes cross- selling is confused with upselling, trying to find a better version of the product to sell.
Concept
Customers will often be ready of an already known provider remove another product. The advantages of the provider arise in part from the fact that no or significantly lower acquisition costs. On the other hand arise from a sustained customer relationship further advantages, such as a declining price sensitivity or cost savings through complementary products. In addition, the increase in customer retention increases the switching costs ( switching costs) and can lead to recommendations on further follow- sales with low acquisition costs. Existing customer relationships are to be thus exploited better by cross-selling.
Benefits for the company
- Secure and increase sales
- Improve customer relationships
- Apply the main range over an edge range or vice versa, acquainting the border range from the main range
Examples
- Buying a car with cross selling, for example, matching winter tires ( up-selling would be an upgraded car model )
- Liability insurance and to a life insurance ( up-sell: liability with increased coverage)
- A haircut at the barber and to a shampoo ( up-selling designer haircut )
- Newsagents: ( controversial ) trend, products that are more expensive than the variegated leaf beizupacken, (cosmetics, etc.) - which requires completely different storage at the kiosk, etc.
But also:
- Lebensmitteldiscounter offers promotional merchandise such as computers, clothing, sporting or gardening tools and is expanding its range of sustainable may
- Bank offers trips
- Car dealerships offer deposits on the banks of the car manufacturers
- Coffee roasters offer weekly changing specials in the style of a warehouse
- Stations provide well-stocked supermarket with bottle shop and video store
- Automated up-and cross -selling in online shops ( referral services )
- Concept Stores combine the target groups from different industries and brands
Implementation
Through computerized CRM systems surgically extracted data for targeted cross- selling actions can be processed. Example: All car buyers in August received a letter in the fall with a winter tire offer.
Or in a telephone live situation: the customer has just ordered a jacket, him fitting jeans is then offered.