Cross selling is the practice of selling or suggesting related or complementary products to a prospect or customer. Cross-selling is one of the easiest and most effective methods of marketing.
In the field of financial services, cross-selling can mean selling different types of investments to investors, insurance for investors, or planning for the retirement of clients.
What is cross selling for?
The main objective of this mode of sale is to increase the average cost of the basket and, therefore, the income. Thanks to this technique, businesses that implement it can see substantial increases in their sales.
Integration of the cross selling strategy with up selling
There are companies that use almost at the same time both sales strategies depending on the purchase phase in which the customer is.
For example, there are stores that when you choose a technological product, include a customization option or inclusion of extra functions for that device, partially increasing the cost of the product and when you go to the page before payment, they show you complementary products as a cross selling.
When to do up selling and when to cross selling
Upselling can be implemented before starting the final phase of purchase or at the end of it. An example of the latter would be https://www.doodly.com/. This animated video company has different price plans according to the chosen pack and what it does is that, once you have bought one of them, it offers you the top pack with an exclusive discount that you would not find if you have not previously bought one of its packs.
On the other hand, cross selling can be implemented when the user is still on the product page, putting complementary products under the main one. These add-ons are usually priced lower.
Examples of cross selling
Basically, cross selling is encouraging a customer who buys a product, such as when you put gasoline in the car, to buy a related or complementary product, in this case it could be engine oil.
Another example is buying a coffee maker on a website and suggesting buying coffee packages for that coffee maker on the same page.