What is Cross-Selling?
Cross-selling is a sales technique in which a salesperson encourages a customer to purchase related products or services in addition to one they’ve already purchased. It’s commonly used to average customer value and deepen customer relationships.
Cross-Selling Example
Acme, Inc. offers clients a full suite of services including web design, SEO optimization, and site hosting — as well as digital marketing services like email campaign creation and social media management. One of Acme’s clients, Beta Co., uses its web hosting service. A sales rep for Acme could cross-sell its SEO optimization and social media services to Beta Co. by demonstrating the added value of increasing organic traffic and awareness to Beta’s website.
What are the Benefits of Cross-Selling?
Cross-selling offers many benefits for B2B organizations:
- Cross-selling helps B2B organizations increase sales and revenue by introducing customers to additional products and services they may not have otherwise considered.
- Cross-selling can enhance customer loyalty by making customers feel valued and supported, and allowing customers to consolidate services under one vendor.
- Cross-selling allows B2B organizations to better understand customer needs and tailor their offerings to meet those needs.
- Cross-selling can help B2B organizations increase market share by targeting new customers or markets with related products or services.
Cross-Sell vs. Upsell
Cross-selling and upselling are different approaches to getting more value from a customer.
- Cross-selling involves offering a product that complements an existing product, while upselling involves offering a more expensive or upgraded version of an existing product
- Cross-selling typically occurs after an initial purchase, while upselling typically occurs during the initial purchase
- Cross-selling increases the number of items purchased, while upselling increases the average value of a sale.
| Cross-Selling | Upselling |
| Offering a complementary product | Offering an upgraded version of a product |
| Occurs after the initial purchase | Occurs during the initial purchase |
| Increases number of items purchased | Increases average value of a sale |
Best Ways to Cross-Sell Customers
Follow these best practices for effective cross-selling:
- Focus on new and existing customers. Generating new business is important, but offering ongoing solutions for existing customers helps to foster loyalty and retention.
- Make sure the cross-sell offering is adding value to the product or service the customer is already using.
- Be consultative, not pushy. Ask questions, listen, and learn what a customer needs to demonstrate value quickly.
Sellers should avoid doing the following when cross-selling:
- Pressure customers to purchase a product that’s not relevant to their needs.
- Cross-sell to customers with limited budgets.
- Try to sell to unsatisfied customers (offer them additional support and resources, instead!).
