Everything you need to know about cross-selling, the unstoppable technique for selling more!

Cross-selling is a common sales and marketing technique. And more often than not, without us even paying attention! 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 preserve of physical sales outlets, it has also developed rapidly 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 well established.

But to implement an effective cross-selling strategy, you need to understand all the ins and outs! Discover the full 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 that involves offering a customer or prospect a product or service that complements the one they initially want to buy.

For example 👉 if you sell men's clothing and a customer buys a shirt from you, it's a good idea to offer them a matching tie as a bonus.

Cross-selling serves several purposes:

• to increase your average basket;
• increase your margins, as cross-selling products are often accessories with an attractive margin;
• push items that you want to highlight at a given time, 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 involves 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 have to do is identify, using your data, the typical purchases of a specific target clientele.
  
  
• Opportunity sales. In this case, items or services are put forward on the pretext of a promotion, a bargain, or a sale in batches with discounted rates.

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

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 are different.

Up-selling seeks 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 make them more wary.

Down-selling, on the other hand, involves 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 rather than lose any opportunities!

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 offering one or more selections of products related to the user's initial choice. These appear at various points in the shopping and browsing journey (product sheets, shopping basket, 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

Employees in the hotel and restaurant industry also face a challenge: not rushing their customers by being too insistent and forcing their hand. After all, they're there to have a good time!

Despite this, forms of cross-selling are practised by professionals in the sector.

💡 Examples:

• a coffee at the end of the meal ;
• services with hotel room hire (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

Mass retailers also use cross-selling techniques, but in a more specific and adapted way. In this case, we talk more about cross-merchandising, which involves placing complementary products in close proximity that are usually located in different aisles.

💡 Examples:

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

Advantages and disadvantages of cross-selling

Why cross-sell?

Cross-selling has a number of advantages for companies. Firstly, as we mentioned at the beginning of this article, it increases the average basket, and therefore maximises the value of each transaction.

But that's not all!

Cross-selling encourages customer loyalty, because by offering products that are adapted to the customer's needs, you strengthen your relationship with them and show that you really understand their expectations.

Another advantage of cross-selling lies in the profitability of the practice. Compared with acquiring new customers, it is often less costly to sell to a consumer who has already been won over. What's more, this strategy generally involves using behavioural 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?

But be careful when using this technique. If cross-selling is poorly executed, it can disturb the customer and give the impression that you are only trying to increase your turnover.

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

How do you set up cross-selling?

Do you want to develop cross-selling?

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

Let's take a look at them.

Select your products wisely

To ensure that you generate additional sales, make sure that you suggest items or services that meet your customers' potential needs, but without being too prescriptive, particularly when it comes to price (which is why it's a good idea not to exceed a certain amount or to offer a product out of stock).

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

Choose the right time

• 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 purchase tunnel (shopping basket confirmation, shopping basket 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 shop, sales staff need to find the best and most natural moment to try and 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 your wording

This point is similar to the previous one, in that salespeople need to show enough active listening skills and empathy to be persuasive. Bear in mind that the customer must not feel pressurised, 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 wording that is enticing, and in line with their target and their 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 need to use special tools for cross-selling.

• Plugins can be integrated into your e-commerce platforms. Whether you use Prestashop, Shopify or Oxatis, there are a variety of modular solutions for cross-selling in different places on your site.
  
  
• Dedicated software. CRM and marketing automation software, for example, can be used to segment your website's customers and track their buying behaviour. 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 that you can modify your strategy if necessary.

It is therefore advisable to set up and monitor KPIs (key performance indicators), such as the increase in the average value of your shopping basket.

☝️ If you run an e-commerce site, 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

Although cross-selling is, in a way, a business practice as old as time, 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 physical stores has opened up a host of possibilities, even if the human contact is no longer direct.

At a time when Big Data and even AI are developing, the opportunities for boosting the value of the shopping basket are multiplying. Cross-selling offers are becoming ever more targeted and powerful, and now affect all sectors of activity. Here are just as many opportunities to seize!