What is Cross-Selling?
Cross-selling is a sales strategy where a seller suggests related or complementary products to a customer who has purchased or shown interest in an item. This technique can enhance the customer experience by offering items that complement the primary product. Naturally, merchants also employ the tactic to increase the customer’s order value by encouraging them to purchase additional items.
Types of Cross-Selling Strategies
Various cross-selling techniques allow merchants to strategically entice buyers to add more items to their carts. Here are some of the most effective methods:
Related Products
Related product collections are one of the most common forms of cross-selling. They are often labeled as “You may also like” or “Frequently bought together” sections on product pages. These suggestions are often powered by algorithms that look to showcase complementary products or other items bought by previous customers of the item on the product page.
For example, if a customer visits a PDP for a set of baking tools, the eCommerce site might display related items like mixing bowls, measuring spoons, or cake-decorating kits
Product Recommendations
Product recommendation engines use behavioral segmentation and customer data to offer personalized suggestions based on browsing history, previous purchases, or popular items among similar customer segments. These recommendations are often shown on the homepage or category pages.
AI-Powered Sales Assistants
AI sales assistants powered by conversational AI can actively engage customers and offer real-time suggestions based on their questions or browsing patterns. For example, an AI chat can ask a customer if they want to add matching items to their cart. The experience can be highly personalized, making it feel like a real, in-person shopping experience.
Checkout Cross-Selling
Ecommerce stores often use cross-selling techniques at checkout to suggest add-ons or other items. This is effective for last-minute additions such as accessories, warranties, or complementary services like gift wrapping.
Benefits of Cross-Selling
Below are some of the biggest benefits of using cross-selling strategies:
Increases Average Order Value (AOV)
Cross-selling helps boost the total amount spent by each customer. This provides a straightforward way to increase revenue without acquiring new customers. For some brands, there is also the added benefit of selling accessories and add-on items as these can have higher margins than the primary product offering.
Improves the Customer Experience
Thoughtful cross-selling can enhance the shopping experience by exposing your audience to items they may need in addition to their primary purchase. When customers are offered well-matched items, they are often grateful for the convenience and will become more loyal as a result.
Supports Product Discovery
Cross-selling can expose customers to new products within a store’s inventory, helping them learn about related items they may not have otherwise considered. This is especially valuable for brands with a broad product range.
