Cross-selling

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Cross-selling is an action or practice of selling additional products or services to an existing customer. In practice, a business defines cross selling in various ways. The elements that may affect the definition may include the size of the business, the industry sector operating within it and the financial motivation of those who are required to define the term.

The goal of cross selling may be to increase revenue from clients or protect relationships with clients or clients. The approach to cross selling processes can vary.

Unlike acquiring new business, cross selling involves an element of risk that existing relationships with clients can be disrupted. Therefore, it is important to ensure that additional products or services being sold to clients or clients increase the value that clients or clients receive from the organization.

In practice, large businesses typically incorporate cross-selling and high-sales techniques to increase revenue.

Video Cross-selling

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For vendors, the benefits are quite large. The most obvious example is income generation. There is also an efficiency benefit in serving one account rather than multiple. Most importantly, vendors that sell more services to clients tend not to be replaced by competitors. The more clients buy from the vendor, the higher the switching cost.

While there are some ethical issues with most cross selling, in some cases they can be very large. Arthur Andersen's transaction with Enron provides a very real example. It is generally perceived that corporate objectivity, as an auditor, is compromised by selling internal audit services and a large number of consulting jobs to the account.

Although most companies want more cross selling, there may be substantial obstacles:

1. Customer policies that require multiple vendors.
2. Purchase points differ in one account, which reduces the ability to treat customers like a single account.
3. Fear of a petahana business unit whose colleagues will undermine their work on the client, resulting in account loss for all units of the company.

Broadly speaking, cross selling takes three forms. First, while serving the account, the product or service provider can hear about additional needs, unrelated to the first, that the client owns and offers to comply. So, for example, in auditing, an accountant may learn about various tax service needs, for appraisal services and more. For the permitted level of regulation, the account may sell services that meet this need. This type of cross selling helps big accounting firms to expand their business significantly. Due to potential misuse, such sales by auditors have been severely restricted under the Sarbanes-Oxley Act.

Selling an add-on service is another form of cross selling. It happens when the supplier assures the customer that it can increase the value of his service by purchasing another from a different part of the supplier company. When someone buys a tool, the seller will offer to sell the insurance beyond the warranty terms. Even so, such cross selling can make customers feel unused to use. Customers may ask the tool seller why he needs insurance with a new refrigerator, "Will it really be broken in just nine months?"

The third type of cross selling may be called selling solutions. In this case, customers who buy air conditioners sell air conditioning and installation packages. Customers can be considered to buy relief from heat, unlike just air conditioning.

Maps Cross-selling

Example

1. The Life Insurance Company advises its customers to sign up for car or health insurance.
2. A wholesale mobile retailer who advises customers to choose a network or an operator after one buys a phone.
3. The brand of television that advises its customers to go to home theater from its brand.
4. Laptops sellers who offer customers a mouse, pen-drive, and/or accessory.

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See also

• AIDA
• Feed and redirect
• Preferred architecture
• Sales contract
• Maximize customer value
• List of marketing topics
• Marketing
• Marketing permissions
• Predictive analysis
• Promotions
• Sales
• Sales techniques
• Top sellers
• Value added selling

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References

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Source

• Harding, Ford (2002). Cross-Selling Success . Avon, MA: Adams Media. p.Ã, 230. ISBNÃ, 1-58062-705-6.
• Wittmann, Georg (2006). Cross-Selling Financial Services for Small and Medium Enterprises through E-Banking Portal . GÃÆ'¶teborg: Proceedings of the 14th European Conference on Information Systems. p.Ã, 8.

Source of the article : Wikipedia