There are many ways to generate additional revenue for your business. Introducing new products, offering additional services, or raising prices are all ways to do so. However, one of the most effective ways to increase revenue starts with how you sell to your current and existing customers.

In this guide, we’ll detail a common sales and marketing technique called cross-selling and share how you can use it to drive more sales and increase customer lifetime value for your business.

What is cross selling?

Cross-selling is a sales and marketing strategy that encourages customers to purchase additional products that are related or complementary to the products they are already purchasing. Cross-selling is a relatively easy way to increase revenue per order.

A classic example of cross-selling is when someone buys a suit. Suits are usually expensive and are not purchased very often. They are often purchased for important occasions such as weddings, funerals, or important business presentations, so their importance is high.

In the above example, cross-selling means that the seller encourages the customer to purchase an additional tie to go with the suit. A high-quality tie that goes well with the suit is an additional purchase that adds value to the suit. And it’s a win-win situation for both the business and the customer.

Another example is when you buy a new car. Dealers can generate significant additional revenue by offering add-ons related to the original purchase. For example, when you buy a car, a dealer might offer to add a new sound system or upgrade the driver’s seat to a more comfortable material.

Cross-selling is especially effective when the additional purchase is relatively small compared to the original purchase. For example, a car is a large investment, so there is likely little resistance to spending a few hundred dollars more for additional features or benefits. Even electronics retailers typically encourage customers to purchase extended warranties when purchasing a new phone or computer.

It is important to remember that cross-selling does not mean offering a lower priced product for a quick buck. When done effectively, cross-selling can not only generate more revenue, but also increase the satisfaction of both new and existing customers.

Example of a cross-selling promotion

Amazon reports that up to 35% of sales are achieved through cross-selling, with the “Customers Who Bought This Product Also Bought” and “Frequently Bought Together” options on each product page. This approach allows retailers to encourage existing customers to purchase additional compatible or necessary products.

So how can you replicate these cross-selling strategies? Here are some examples:

Examples of cross selling:

• A salesperson at an electronics retail store suggests that a customer who purchases a digital camera purchase an additional memory card.
• A cashier at a fast food restaurant asks a customer, "Would you like to add fries?"
• As you get closer to the purchase stage of the customer journey, encourage your ecommerce site’s checkout page to add related popular products or essential accessories that aren’t included with the product they’re trying to buy.
• New car dealers often suggest adding a cargo liner or other aftermarket products to your vehicle when you first purchase it.
• Clothing stores show complete outfits, encouraging customers to buy the entire collection rather than just individual items.

One of the popular cross-selling techniques in the ecommerce world is to display a pop-up after the order is completed, offering related items with a small discount. In other words, cross-selling efforts don’t have to seem “negative” or over-the-top, because you don’t want to negatively impact the customer journey in order to cross-sell.

Cross-selling strategies and best practices

Cross-selling should enhance customer satisfaction, not hinder it. Best practices for successful cross-selling include:

• Recommend any accessories that are necessary for the proper operation or use of the product you purchased. For example, recommend a power cord that is not included with a computer printer.
• We bundle related products so that customers do not have to search for the necessary components or accessories separately.
• Offer discounted prices on bundled products to encourage immediate purchases through temporary price savings.
• Demonstrate how the additional product is compatible or works with the product you are purchasing.
• Address potential customer objections in advance during cross-selling conversations. For example, a waiter might show a customer a dessert tray and overcome the reaction of “I shouldn’t have that” by suggesting, “How about sharing the dessert?”

Cross-selling in an e-commerce environment is all about identifying relevant products and creating appropriate offers, while face-to-face cross-selling may require training on effective approaches. However, in both cases, the goal is to increase the company’s revenue while also improving customer satisfaction.

Cross Selling: An Effective Way to Increase Revenue and Maximize Profits

Cross-selling is one of the marketing and sales techniques that can be applied to almost any business. Most businesses can benefit greatly from incorporating cross-selling into their marketing strategy. If increasing revenue is your main goal, cross-selling is definitely worth a try. Use the cross-selling examples we shared above as a starting point and try introducing cross-selling into your own business—you’ll be sure to get great results.

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