Learn all about cross-selling, the unstoppable technique for selling more!

Cross-selling is a common sales and marketing technique. And most of the time, we don't even notice it! That's part of its strength.

In the supermarket, in your hairdressing salon, in the restaurant... the practice of cross-selling is everywhere. And while it has long been the prerogative of physical points of sale, it has also greatly expanded online.

Why is this? Because the benefits of cross-selling in terms of increasing the average shopping basket, and therefore by extension a company's sales, are no longer in doubt.

But to implement an effective cross-selling strategy, you need to understand all the ins and outs! Discover the complete definition of cross-selling, illustrated with examples and techniques to follow, so you can make the most of your cross-selling.

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What is cross-selling?

Cross-selling: definition

Cross-selling is defined as a sales and marketing technique involving offering a customer or prospect a product or service that complements the one they initially wish to acquire.

Example 👉 if you sell men's clothing and a customer buys a shirt, it's a good idea to offer him the matching tie as a bonus.

Cross-selling serves several purposes:

• increase your average basket;
• increase your margins, as cross-selling products are often accessories with an attractive margin;
• push items you want to highlight at a given moment, for strategic and/or economic reasons.

Thanks to these three benefits, you can boost your sales.

What are the different types of cross-selling?

💡 The first basic rule for successful cross-selling operations: the items or services presented must fit in perfectly, and as naturally as possible, with the prospect's or customer's approach.

Here are the different types of cross-selling we come across that meet this imperative:

• The sale of complementary products, linked to the initial product. Accessories, for example.
  
  
• Affinity selling. This consists of pushing an item that is not directly related to the initial choice, but which the buyer might still need. These products are easy to spot in e-commerce, since all you need to do is identify, through your data, the typical purchases of a specific target clientele.
  
  
• Opportunity sales. In this case, items or services are put forward under the pretext of a promotion, a bargain, or a sale in batches with discounted rates.

Remember, however, that it's often the sale of complementary products that we're talking about when we talk about cross-selling techniques.

Cross-selling, up-selling and down-selling: what are the differences?

Although cross-selling and up-selling are often compared, since they both contribute to increasing customer shopping baskets, the two levers differ.

Up-selling aims to move customers upmarket, by replacing their initial choice with a higher-priced product. To do this, the salesperson or e-tailer highlights certain qualities, such as technical superiority.

☝️ Beware, this technique is more complicated to implement. By offering the consumer an additional, more expensive product, you further increase their distrust.

Down-selling, on the other hand, consists of offering an item or service of lesser value than the one initially envisaged by the customer. This process enables you to capture sales where the consumer might otherwise give up because of the price. In other words, it's better to generate sales than to lose any opportunity!

3 examples of cross-selling

Cross-selling and e-commerce

E-tailers have to adapt to a particular constraint: their sales forces are not in direct contact with the customer. But that doesn't mean they can't implement strategies to generate additional sales.

Generally automated, cross-selling on the web is based on the proposal of one or more selections of products related to the initial choice of the web surfer. These appear at various points in the purchasing and browsing process (product sheets, shopping cart, etc.).

💡 Example: you consult the product sheet for the first volume of Harry Potter, Amazon then pushes you the other volumes in the saga.

Cross-selling in hotels and restaurants

Hotel and restaurant employees, too, face a challenge: not rushing their customers by being too pushy and forcing their hand. After all, they're there to have a good time!

Despite this, forms of cross-selling are practiced by industry professionals.

💡 Examples:

• coffee at the end of the meal;
• services with hotel room rental (spa treatment, excursion, etc.) ;
• extra breakfast, etc.

These additional sales take place at different times, i.e. during the stay or dinner, but also upstream, at the time of booking.

Cross-selling and supermarkets

The retail sector also uses cross-selling techniques, but in a more specific and adapted way. In this case, we speak more of cross-merchandising, which involves placing complementary products in close proximity, which are usually located in different departments.

💡 Examples:

• whipped cream next to strawberries ;
• barbecue charcoal next to meat;
• sweets near the cash register.

Advantages and disadvantages of cross-selling

Why cross-sell?

Cross-selling has many advantages for companies. Firstly, as we mentioned at the start of this article, it increases the average shopping basket, and therefore maximizes the value of each transaction.

But that's not all!

In fact, cross-selling fosters customer loyalty, since by proposing products adapted to the customer's needs, you strengthen your relationship and show that you really understand their expectations.

Another advantage of cross-selling is its profitability . Compared with acquiring new customers, it is often less costly to sell to a customer who has already been won over. What's more, this strategy generally involves the use of behavioral data, to make your proposals more relevant.

Finally, cross-selling is a good source of revenue diversification: by broadening your product offering, you can reach new market segments or strengthen your position in existing ones.

What are the limits to this sales technique?

Be careful, however, when using this technique. If cross-selling is poorly executed, it can confuse customers, giving them the impression that you're just trying to increase your sales.

At the same time, you need to ensure that the offer you make is relevant. Otherwise, you run the risk of reducing the effectiveness of your strategy, and above all of damaging the perceived quality of your service.

How to set up cross-selling?

Would you like to develop cross-selling?

Even if the techniques vary depending on the nature of your business, your clientele, and whether you sell at the point of sale or online, there are a number of best practices to observe. 🔎

Let's see which ones.

Select your products wisely

To ensure additional sales, make sure you suggest items or services that correspond to your customer's potential needs, but without being too demanding, particularly in terms of price (which is why it's a good idea not to exceed a certain amount, or to offer an off-sale product).

Qualitative offers are also good opportunities. This is why e-commerce sites often highlight their best-sellers.

Choose the right moment

• Online, don't hesitate to multiply your chances by presenting your product selections at different stages of the customer journey:
• on the product sheet ;
• during the various stages of the purchasing tunnel (shopping cart confirmation, shopping cart page, payment page, etc.) ;
• in a follow-up email, etc.

• In supermarkets, we've seen that it's a good idea to offer additional items near hot spots (near checkouts, for example), or through strategic shelving.

• In a physical store, the salesperson needs to find the most appropriate and natural moment to try to increase the value of a basket. The QQOQCP method is a good tool for putting yourself in your customer's shoes, grasping their needs and better identifying opportunities.

Work on your sales pitch and wording

This point ties in with the previous one, insofar as the salesperson must demonstrate sufficient active listening skills and empathy to be persuasive. Bear in mind that the customer mustn't feel pressured, as this would be detrimental to customer loyalty!

On the other hand, how do you adopt the right approach online?

As a general rule, e-commerce sites are careful to use inciting wording, and in line with their target and offer, when pushing items. Examples include:

• "You'll like it too";
• "Internet users have also bought";
• "Complete your look", etc.

Use the right tools

If you run an e-commerce business, you'll need special tools for cross-selling.

• Plugins can be integrated into your e-commerce platforms. Whether you're using Prestashop, Shopify or Oxatis, there are a variety of modular solutions for cross-selling at different points on your site.
  
  
• Dedicated software. CRM and marketing automation software, for example, allow you to segment your website's customers and track their buying behavior. This makes it easier for you to offer them complementary products and build their loyalty, through a newsletter, for example.

Evaluate the results of your strategy

Finally, always evaluate the impact of your cross-selling, so you can modify your strategy if necessary.

Therefore, it's a good idea to set up and monitor KPIs (key performance indicators), such as the increase in your average basket value.

☝️ If you run an e-commerce business, A/B testing is a good way of checking which actions web users are most responsive to.

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Cross-selling techniques in constant evolution

While cross-selling is, in a way, an age-old business practice, the explosion of online sales has given rise to new ways of doing things.

Attempting to apply on the Internet the good formulas that work in the physical world has opened up a host of possibilities, even if human contact is no longer direct.

At a time when Big Data and AI are on the rise, the opportunities for boosting basket value are multiplying. Cross-selling offers are increasingly targeted and effective, and now affect all business sectors. So many opportunities to seize!