Cross-selling to your existing customers seems like an obvious way to increase the sales of your products and services. However, when done the wrong way, cross-selling can actually cut into your profits.
Cross-selling the right way will raise your per-customer sales, not lower it. Follow these seven steps and you’ll have a win-win solution which benefits both your company and your customers.
1. Evaluate the Performance of Your Current Program
Your company may already train your employees to cross-sell to your current customers but do you know if the program is actually earning a profit or building customer loyalty?
When done the wrong way, cross-selling can generate excessive marketing expenses and may even leave your customers feeling underwhelmed and unappreciated.
Take the time to analyze your cross-selling program to see what is working and what needs to be fixed.
Take the time to plan out every detail of your new strategy. What are your goals? Do you have a cross-sell ratio you are trying to achieve? Calculate the ROI of your new cross-selling/customer retention plan. A two to three percent sales increase is a reasonable goal to meet.
3. Target Your Analytics
By systematically targeting your analytics, you’re laying the foundation for answering the questions of what product to sell, when to sell it, whom to sell it to, and how to sell it.
Collect proper data from the very beginning of your program’s implementation so you will be able to more fully utilize it for your plan’s benefit in the future.
4. Avoid Profit-Reducing Customers
Not every customer will be profitable for your company. Avoid spending the time and money with cross selling to the following types of profit-reducing customers.
- Habitual over users of customer service: The more demands they make, the more your costs go up.
- Returners: They generate revenue but then return their purchases.
- Deep-discount shoppers: These customers actively avoid purchasing items at full price.
- Fixed spenders: Customers who stick to a limited budget.
5. Find the Best Way to Sell
Your goal in cross-selling isn’t just to make a profit. It should also be to make your customer happy. When you give value rather than just trying to push products, you will be more successful at sales and your customers will patronize your business again.
Be sure your employees are familiar with your customers’ needs and that they have an extensive knowledge of your offered products and services. When needs and solutions converge, that’s when success happens.
6. Implement Your Strategy
Before implementation of your new cross-selling strategy, make a concerted effort to fully train your employees and help them feel comfortable with the process. Give someone the responsibility of overseeing the plan. Take a test run and make any necessary tweaks. Motivate and reward your employees when they go above and beyond.
Perhaps the most effective way to implement your cross-selling strategy is by combining it with your already-established inbound-call customer service center.
7. Tracking & Measuring Your Success
With your projected ROI calculation and your target analytics in place when you implement your strategy, it will be easier to track and measure your plan’s success against those metrics. Continually evaluate your customer satisfaction rates along with your profit margins. Adjust your plan accordingly.
No matter the numbers, you must remember that the true indicators of a successful cross-selling plan are in the improvement in customer loyalty, an increase in customer equity, a stimulated entry into new markets, a balanced growth between new and existing customers, and a better relationship with your customer.
For information on how ROI Solutions can aid you in your cross-selling efforts, contact us today for a free quote.