What is Cross Selling? Cross selling is the act or process of selling another product or service to a current customer. In common use, companies typically define cross selling in several different ways. They could be defined as the addition of a product or service by a current customer, or they could be defined as selling an existing asset to a new customer.
In business terms, Cross selling is often defined as a transaction in which one party sells a product or service to another party, and in which the other party receives a product or service as a result. In this definition, the seller is referred to as the Reseller and the recipient is called the Customer. There are many factors that go into establishing a profitable Cross selling relationship. The key factor is to establish an ongoing relationship with your customers and build a rapport with them so that your customers will continue to buy from you even when they have another retailer around.
So how does Cross selling work? What happens is that when you offer your existing customers another product or service, you are building a residual income stream with them. That is, your existing customers will purchase more from you when they know that they can count on you to provide them with the goods and services that they need. This is referred to as cross selling.
The way this works is that when you sell an existing product to another existing customer, you are increasing the value of that product for both your company and the buyer. For example, imagine that I own a restaurant. People who eat at my restaurant can get another entree if they want to. Likewise, people at my restaurant can get drinks for their kids if they take my coffee shop there instead of going to a Starbucks. If I add more value to my existing customers by offering a related product to them, we have created a win-win situation for both parties.
Many companies offer their existing customers a range of products. Their most popular products are those that they can easily replicate themselves. So they sell things like paper towels, napkins and table clothes. But they also sell a range of cleaning products and pet products. Whatever you can duplicate in your business and make more affordable to your customers, you should do.
It is often said that it doesn’t matter where you store your inventory, as long as you have customers there. But that is only half of the story. When you have multiple locations, each of which sells a very similar product, you need to be aware of cross selling. In essence you are gearing all your stores towards the same audience. So how do you go about making sure that you are doing your best at cross selling?
You need to use the same packaging as your other products. This way you make it even easier for your existing customers to return the items they bought from you. You also need to keep all of your packaging unique to the item it is representing. If you are selling cleaners you might want to stock up on paper towels, but not so much on a toothbrush. So what is cross selling?
It is an important part of online reputation and retailing. It allows your customers to easily move between items that they have already purchased from you. The most successful retailers know that it is all about what is cross selling and how to create new purchases that will increase your bottom line. So what is cross selling? That is just about the easiest thing you could ever ask a retailer to answer!