What is Cross-selling?
What is cross-selling? We present the difference of cross-selling, the advantages and the points for success. Like cross-selling, up-selling also aims to increase the unit price per customer.
What is Cross-selling?
Cross-selling is a method of proposing related products to customers who have purchased or are considering a product and encouraging them to make additional purchases.
For example, suggesting a customer who ordered a hamburger to buy an additional beverage, or recommending a printer to a customer who purchased a computer. In this way, cross-selling is a technique that aims to improve unit prices per customer and sales.
This method has been used in various industries for a long time and has begun to attract attention again in recent years. The reason for the renewed attention is the rising cost of acquiring new customers.
For this reason, the importance of existing customers is growing. Therefore, you can expect an efficient increase in sales by increasing the unit price per customer.
Difference of up-selling
Upselling is a method of proposing a higher quality product to a customer who is considering buying a product. For example, this applies to cases such as suggesting a higher quality model to a person who is about to purchase a personal computer, or recommending a higher quality plan to a general plan service user.
Both methods also target customers who have made purchases in the past, not just those who are about to buy the product now.
Cross-selling examples: Here are some specific examples so you can easily get a cross-selling image. Also, if customer satisfaction improves, positive information about products and services can spread by word of mouth.
Suggestion of related products.
In fast food restaurants, it is a style of proposing, "Would you like to have a side menu together?" By suggesting related products, it is possible to encourage customers to buy later, leading to an increase in the unit price per customer.
In addition, in the case of EC site management, there is a method to display "frequently purchased products" based on the customer's purchase history stored in the customer management system.
Possible time frames for proposing related products include initial purchases, contract renewals, and budget considerations.
Present the benefits of buying a set
This is a technique to make customers feel they are getting a good deal by showing them the benefits of buying a game. This includes set menus in restaurants, introductory games in musical instrument stores, and computer starter sets.
The dissemination and introduction of information by customers can lead to the acquisition of new customers. We can expect a virtuous cycle in which the unit price per customer increases and the effect of attracting customers at low cost can be obtained.
If you clearly show the merit of buying at the same time, the price will be cheaper than the price alone, customers will find "reasons to buy." Fixed products that combine individual items make it easier for customers to understand how much you can save, so they can get a sense of value and generate purchases.
Benefits of cross-selling
One of the benefits of cross-selling is the increase in unit price per customer. This is because customers are buying things they did not originally plan to buy. In addition, if customers feel the benefits, it will also lead to an improvement in the company's image.
By implementing cross-selling, you can increase the unit price per customer and maximize your organization's profits. In modern times, it is difficult to acquire new customers and the cost of attracting customers tends to be high.
It is said that the process of acquiring a new customer leading to a purchase costs five times more than the repeat purchase of an existing customer.
Even if you cannot acquire new customers, you can expect an increase in sales if you have existing customers. In addition, if you are switching to a business focused on existing customers, you should also take steps to avoid churn.
Customer spending increases
If you can build and maintain a good relationship by communicating regularly and issuing coupons that only regular customers can use, you can avoid exit. It leads to the improvement of the company's image.
Proper execution of cross-selling measures will contribute to improved customer satisfaction if customers feel the benefits. As a result, it will increase awareness and strengthen the brand.
Today, everyone can easily obtain diverse information, so consumers tend not to make purchasing decisions easily. They compare prices and additional services on the Internet and decide whether to buy or not.
If you make an effort to build and maintain good relationships, you can expect customers to become fans and repeat customers, and the lifetime value of customers will increase. We will become a profitable entity in the medium to long term and expect to expand and stabilize profits.
Successful cross-selling in contact centers
There are quite a few cases where contact centers are set up, but the cross-selling does not go well. To successfully cross-sell your contact center, you need to address the following points:
Blindly suggesting products will not generate purchases. Even if it is a related product, if there is no need, they will not buy it, and it may even generate a sense of distrust.
Focus on gathering and analyzing customer information so that you can make appropriate proposals. By analyzing accumulated information, such as products purchased in the past and frequency of inquiries, you can see what the customer wants.
Collect and analyze customer information
The introduction of CRM (customer management tool) and SFA (sales support system) is effective in carrying out the above operations efficiently. In addition to accumulating and analyzing data, it is useful for sharing information between departments.
By sharing customer information, even employees other than the person in charge can respond appropriately. When choosing a tool to introduce, it is a good idea to check not only the functions and cost, but also the operability and support system.