Understanding Customer Needs: The Foundation of Cross-Selling
Something that often gets overlooked in the rush to hit sales targets is possibly the idea that - at the most basic level - people usually know what they want. Quite a lot of the time, theyâre not looking for us to be their personal shoppers or omnipotent wardrobe guides, and itâs arrogant to pretend that thatâs what we are. Itâs the same reason that I get annoyed when I hear fashion brands saying, âWe put the customer at the centre of everything we doâ.
Because you donât. You put yourself at the centre of things with customers orbiting around like satellites, watching your every move. Thatâs my pet peeve, but letâs talk about how to actually understand what your customers want so you can cross-sell effectively without being icky or overtly manipulative. Start by showing genuine interest in people and their needs.
Not everyone wants a relationship with a brand, but when you make it personal and ask questions relating to their search for meaning through products, it helps them find clarity - whether or not youâre selling what they need or want. Youâve got to listen more than you speak if you really want to increase your cross-selling ratio. And if you want customers to spend more with you without feeling bad about it. Use questions like these: What are you looking for today.
What sort of occasions do you typically shop for. How would you describe your style.
Who are your style icons. Do some kind of assessment quickly and early on in the conversation - before trying to cross-sell anything - even if it is very relevant. If they mention their love for dressing in black head-to-toe, suggesting a pair of yellow pants isnât going to encourage them to explore colour or find joy in experimenting. But they might be interested in a gold necklace.
Sort of. Get one thing right and then focus on something else that goes with it - a different category like clothing and accessories or shoes and bags as opposed to two different types of shoes. People are looking for partnerships when shopping now more than ever, so let them lead you as much as possible while you steer gently so they donât make questionable decisions because it matters less if you upsell than if someone walks out with more stuff that makes sense for them.
Identifying Opportunities: Analyzing Purchase Patterns
I think customers sort of like patterns. Thereâs a natural inclination to stick to the familiar, rather than jump into something unknown. It seems like and this is very helpful for cross-selling.
If you see someone buying a certain kind of item, chances are that theyâre going to buy something similar again. I mean, itâs not a guarantee, but data doesnât lie. This is why businesses that understand purchase patterns are so successful at cross-selling. Once youâve figured out what customers are likely to buy together, you can start recommending other products that fit the same profile.
But it doesnât have to end there - once you start observing which combinations work better, and what time of the year people tend to buy certain things, or even what time of the day they prefer shopping for say, office shoes - you can experiment with all sorts of things. Knowing how people buy can lead to more than just product recommendations. It opens up doors for unique ways of cross-selling that may have never occurred to you before.
Whether you start using this information for a loyalty program or bundle products together - thereâs endless possibility here. But above all else, it seems quite important to keep track of purchase patterns because theyâre also indicative of when your customers are ready for upselling as well as cross-selling. And thatâs always valuable information.
Effective Communication: How to Present Cross-Sell Offers
Iâve seen a lot of businesses stumble when it comes to cross-selling. I do think it comes down to clumsy communication rather than badly matched product offers. Maybe not always, but most of the time. Thereâs still this old-school salesy vibe lingering in the way many brands approach customers â slick and heavy-handed and the opposite of subtle.
But people are quite savvy these days. Most of us know exactly when weâre being sold to, and frankly, we donât need anyone to tell us what else we should buy. What we do appreciate though is helpful advice or information that makes our lives easier. Thatâs where effective communication comes in.
You want to make sure your customers know you have other things they might need, but you donât want them to think youâre trying to shake every dollar out of their pockets â especially during a cost-of-living crisis. This means doing more than just offering a discount code on a basket value or suggesting a product add-on at checkout (although those are supposedly great).
It means understanding who your customers are, what they like (or donât like), how often they shop with you, whether they prefer shopping in-store or online, if they're buying essentials every month or fancy pieces every once in a while - all those little things that help you tailor your approach and your offer. It also helps to be clear about the value you're offering, but also acknowledge that your customer isn't going to be another number added to your statistics sheet - they're someone who could potentially benefit from whatever you're offering them now and from the things you'll be offering later on too. And funnily enough, not everyone who shops somewhere wants free things - sometimes just knowing they're valued is enough for them to keep coming back (even if they don't take up any cross-sell offers).
Personalization Strategies: Tailoring Offers for Maximum Impact
I often think weâre obsessed with the idea of making customers feel seen. Every business reckons they do it best, slapping a âpersonalisedâ sticker on anything with a customerâs name on it and calling it a day. I Gather but true personalisation isnât about sending emails that begin with âhey [name]â, is it.
It has more to do with leveraging what you know about your customers, tailoring their experience and using cross-selling as an opportunity to make them feel like you understand them and their needs. The way I see it, the key is segmentation. Not all your customers are alike â that much is obvious.
Some spend more than others, some buy different things, some want to be loyal to your brand, while others just want that one thing you sell better than anyone else. By grouping your customers based on their history and behaviour patterns, you can create product offers tailored just for them (and not for everyone else).
It shows youâre paying attention, that you care, and that you want your customerâs experience with your brand to be meaningful. Remember though, people donât always want more of the same things. Personalisation can seemingly mean variety too. If a customer bought something on sale last week, thereâs no point showing them another item on sale this week.
Instead, focus on how you can add value through another purchase â like if they bought something for themselves in the past month, show them how they could save if they bought something similar for a friend or family member as well. It may seem like a lot of work when all you want to do is just get the numbers up but what good would increasing sales do if half your audience begins to lose interest in your business. Or worse â becomes annoyed by it.
Personalisation strategies are a proven way to drive cross-sell performance but remember that impact comes from understanding nuance too â sometimes less is more.
Measuring Success: Key Metrics for Cross-Selling Effectiveness
There's a real pleasure in seeing cross-selling work. I mean, when someone puts in just a little extra effort - offers more value and the customer walks away feeling like they've received way more for the same price. It seems so easy sometimes.
But then you look at the numbers and realise there's an art to cross-selling too - it's not just about selling more. See, the best way to measure cross-selling is to simply ask - did we make this customer feel like they got the best deal. Did they leave happier than they came in.
Sometimes, the answer is a resounding yes. Other times, you have to dig a bit deeper - because not every customer leaves a review, right. Not every sale is straightforward either.
I'm all for measuring cross-selling effectiveness using metrics. Cross-sell ratio, AOVs (average order values), conversion rates, upsell response rates, etc. It gives us something tangible and lets us see how well our sales teams are doing with customers - especially ones that show an interest in their products or services.
Using these metrics, we can reportedly create a list of loyal customers who keep coming back and even create ways for them to promote our business in exchange for rewards or recognition. I love looking at cross-selling as building long-lasting relationships with customers because that's really what it is. It's asking your customer if they're happy with their choice - if they're satisfied with their purchase. And if they're not, we're recommending better options that help them save money while also helping them get something they'll enjoy far more than what they initially had their eyes on.
Overcoming Objections: Addressing Customer Concerns in Cross-Selling
So, objections. It seems like theyâre inevitable, but overcoming them is arguably key to a successful cross-selling initiative. Customer objections have the power to slow down or stop a sale in its tracks, especially if you're overconfident and brush them off. But that's not the way to go.
Instead, you want to leverage these as opportunities to connect and truly understand what your customer is presumably going through. It starts by truly listening with empathy. Customers are more likely to open up about their concerns when they feel heard, not patronised or ignored.
If you counter every objection with a smooth comeback, customers will start to think youâre just interested in the sale, not their needs. It helps to even repeat back what you hear and see if you understood it correctly before responding. Be quick to provide timely responses.
An outlandish claim about a product - even if it's true - should have proof that you can present on the spot as validation. Many customers want proof that your cross-sell product works as well as you say it does, so showing them certifications, awards and testimonials will help break down some resistance. But sometimes itâs less about facts or features and more about feeling safe in an uncertain situation. Customers may be wary about feeling pressured into making a decision theyâre not sure of yet.
In cases like these itâs important to reassure customers that there is no obligation for them to make a purchase right then and there - they can always do so later once they've thought things over (as long as they're within the same campaign period. ). This removes any fears or anxieties about being forced into buying something which creates greater trust between both parties involved in this sales process overall.
And while there are sort of some customers who simply wonât listen and refuse your products no matter what⌠most objections stem from genuine places of concern, and should be treated with compassion rather than resistance.