Cross selling
Cross-selling (also cross-selling , English cross-selling ) referred in marketing the exploitation of a client relationship by the additional sales of complementary products or services .
General
Cross sales can increase sales per order or order . In sales strategy , however, this term is often used in a much broader context. The aim is to place more different products and services from its own product range with the company's customers . In this respect, the nature of the products and services does not have to be directly related to the product requested by the customer. Rather, it is about a holistic sales strategy that captures the comprehensive needs of the customer and covers them as far as possible with their own services. The customer is encouraged to buy products that he does not inquire directly. Part of the range is offered for this at cost price or with low profit margins in order to promote the sale of products with higher profit margins . A distinction is often made in the implementation according to various experience and purchase situations, phases of life or the like. In addition, offers in completely different areas are part of the typical cross-selling strategy.
Sometimes cross-selling is confused with upselling , trying to sell a better twist on the product.
concept
Customers will often be willing to purchase another product from an already known supplier. The advantages of the provider result on the one hand from the fact that there are no or significantly lower acquisition costs. On the other hand, further advantages arise from a lasting customer relationship, such as B. a decreasing price sensitivity or cost savings through complementary products. In addition, the increase in customer retention increases the switching costs (switching costs) and can lead through referrals to follow-revenue with low acquisition costs. Existing customer relationships should therefore be better exploited through cross-selling.
Benefits for the company
- Secure and increase sales
- Improve customer relationships
- Advertise the main range via a marginal range or, conversely, advertise the marginal range via the main range
Examples
- In the textile area , accessories that match the item are offered.
- Car purchase with cross-sale of z. B. suitable winter tires (up-selling would be a higher-quality car model).
- Liability insurance and life insurance (up-selling: liability with increased coverage ).
- a haircut at the hairdresser's and a shampoo (up-selling: designer haircut)
- In the magazine trade : (controversial) trend to pack in products that are more expensive than the colored sheet (cosmetics, etc.) - this requires completely different storage at the kiosk, etc.
but also:
- Grocery discounter offers special offers such as B. PCs, clothing, sports or gardening equipment and thus expanded u. U. sustainable its range of products.
- Banking : The Allfinanz strategy not only offers banking , but also types of insurance .
- Car dealerships offer investments through the manufacturers' car banks .
- Coffee roasters offer weekly changing offers in the style of a mail order company.
- Petrol stations offer a well-stocked supermarket with a beverage store and video library .
- Automated up- and cross-selling in online shops ( recommendation services ).
- Concept stores combine different industries and brands according to target groups.
implementation
EDP-supported CRM systems can be used to prepare operationally obtained data for targeted cross-sales campaigns. Example: All car buyers in August will receive a letter with a winter tire offer in autumn.
Or in a live telephone situation: the customer has just ordered a jacket and is then offered the right jeans.
See also
literature
- Christian Homburg, Heiko Schäfer: Profitability through cross-selling. Professionally develop customer potential. (= Management Know-how Paper M60 of the Institute for Market-Oriented Management ). Mannheim 2001.
- Christian Homburg, Heiko Schäfer: The development of customer potential through cross-selling. In: Marketing ZFP. No. 1, 2002, pp. 7-26.
- Heiko Schäfer: The development of customer potential through cross-selling. (= Series of publications by the Institute for Market-Oriented Management ). Wiesbaden 2002, ISBN 3-8244-7601-0 .
- G. Wittmann: Cross-Selling Financial Services to Small and Medium Enterprises via E-Banking Portals. In: Proceedings of 14th European Conference on Information Systems, Göteborg 2006.
- G. Wittmann: Increase in cross-selling success in medium-sized corporate customers through product bundling. In: BIT. 1/2006, pp. 9-24.
- G. Wittmann et al: Cross-Selling at banks - empirical analysis of the status quo, trends and future requirements.