When used properly, cross-selling is an effective marketing strategy that increases revenue by improving the business’s customer value and retention rate, says Martin Everly from http://www.theseoconsultantlondon.co.uk.
Using cross-selling techniques is an effective marketing tactic to quickly generate additional revenue without costing the company extra to launch. Since shopping cart software with features for cross-selling is now widely available to e-commerce websites of all sizes, this marketing tactic is no longer only found on large websites.
What is Cross-Selling?
Cross-selling is a marketing tactic used to increase sales by displaying products to the shopper that are closely related to the product he or she is interested in purchasing. It allows the business to promote similar products that the customer may not be aware of, or offer a complimentary product that the customer may be interested in as an impulse buy.
For example, if the customer purchased a Harry Potter book, then the business may want to suggest a bookmark featuring the image of the book cover for a low price when the customer is ready to checkout.
Examples of Cross-Selling Products
Amazon.com successfully uses cross-selling by having two sections on each of its product pages display them in the form of “Customers Who Bought This Item Also Bought,” and “What Do Customers Ultimately Buy After Viewing This Item.”
Some items have an additional section called “Frequently Bought Together,” which features items that are bundled at a discounted price with other products that are related. Similar types of cross-selling can be found on the websites of eBay, Life is Good, Barnes and Noble and Target. Even large banks can be seen cross-selling whenever a customer registers for a personal savings account, such as displaying an offer for its savings or money market account.
Cross-selling can also take place between branches of the same company. For instance, after eBay purchased Half.com, it used the merger to its advantage for cross-selling between sites. Customers browsing a product on Half.com now see a box displaying current eBay listings of the same product, which allows customers to conveniently bid on the item if it is available at a cheaper price that what is seen … Continue Reading