Cross selling is a sales technique used by businesses to sell additional products or services to existing customers. It is the act of pitching complementary products or services that may be beneficial to the customer, in addition to those they have already purchased. Cross selling is closely related to upselling, however there are some distinct differences between the two.
Upselling is a sales technique that encourages customers to purchase higher priced items than what they originally intended to buy. It also includes encouraging customers to upgrade from an original purchase with more features or add-ons such as extended warranties and extra accessories. In contrast, cross selling involves offering products or services which are not an upgrade from what was chosen but rather could complement it in some way and make it more useful for the customer. For example, if someone buys a laptop, a salesperson might suggest buying a laptop bag, printer or software bundle.
Cross selling can be effective when done right because it can increase sales volume and open up new areas of income for business owners. Additionally, it helps create strong relationships between businesses and their customers as they offer helpful advice on what could best suit their individual needs. Furthermore, cross selling requires little additional costs of goods sold (COGS) since the items being pitched are usually unrelated to what has been purchased initially. This makes it an attractive option for businesses looking to increase their revenue without having to spend too much money on additional inventory.
