Cross selling ups profits

Cross selling is encouraging a customer to buy a little extra on top of their original purchase. A hairdresser may suggest that the results of the styling, or the overall hair condition, will be maintained longer with a particular gel they sell.

A cross sell item is usually a small purchase that has obvious benefits, insignificant cost and doesn't require much thought to make the buy decision.

Why it works

Many business owners are reluctant to branch into cross selling. They worry that they'll put the main sale at risk by appearing too pushy, but in fact the cross sell offer comes after the hard part of the sales conversation is already over, often after the main sale has been made, and you have already developed a rapport with the customer. Customers are likely to appreciate your thoughtfulness in offering them an added benefit they didn't know about.

How to present your cross sell offer

Attempts at cross selling can go wrong, but not because of any problem with the basic idea. The main problem comes from technique. If you and your employees aren't trained on effective ways to cross sell, chances are you will offend customers by being too pushy or giving the wrong message.

Consider this example. A customer buys a good quality family leather lounge suite on a number of monthly repayments. A straightforward question "Do you want our monthly cleaning service as well" is not likely to get a bite. But an approach along the line of "ThatÆs a substantial investment you have made and I'm sure that lounge will really make your room look good. We offer a monthly professional cleaning service for a bit extra that will keep it looking good and ensure your warranty remains valid".

With that substantial investment in mind, the potential for damage and the possibility of protecting the warranty conditions there's very little resistance to cross selling them into the monthly professional cleaning service deal.

In cross selling it's essential to approach the sale by foregrounding the benefits of the added product / service and presenting the information in a standard script.

One of the most effective cross selling techniques is having the customer actually try the product and experience the benefit right away. Our hairdresser might put hair gel in the customer's hand and show them how to apply it themselves. By showing the client how to get the salon look at home they create an immediate value add that will encourage the purchase.

Add-on products can be grouped together to form a bundle with a special discount offer for taking the lot. That works best where the products are related and contribute to the same benefit of the main purchase - in the hairdressing salon it could consist of a discount offer for taking a shampoo, a conditioner and a gel for a package price.

For most businesses, a little thought and a little training using some simple principles can make a world of difference:

Think through the combinations you can offer,
Work out simple scripts to introduce them that don't cause a negative reaction (present the information in a "by-the-way" manner and mention benefits).
Work out any deals that could apply for buying a group of add-on products
Get your employees familiar with the packages and the script that goes with them

Businesses that have a formal cross selling programme report acceptance rates of between 40% and 60% for their offers. This represents a good return for an activity that adds little extra time to the customer transaction and can be scripted so any salesperson can do it.

For more information contact your RAN ONE business professionals at
Academy of Business Excellence Limited