There are many tactics to increase your sales value and therefore generate higher profits. One of them is complementary sales. What is it about? Is it effective?
C.what is cross-selling?
Cross-selling, otherwise known as complementary or cross-selling, is a technique for increasing the value of a purchase by offering items in addition to the main product. What does this look like in practice? A customer buys a smartphone and a salesperson in a retail shop or a special algorithm in an e-commerce site suggests that the customer buy a headset, case or screen film. The key to successful cross-selling is to offer accessory products at a lower value than the main product. The price of accessories seems negligible, so customers are more likely to add them to their basket.
Does complementary sales work?
Offering complementary products translates into real profits. Cross-selling stimulates further purchases. According to statistics, almost 30% of the total sales of many online shops are recommended products. Many retailers say that recommendations of specific products, in addition to the main item, is one of the main factors influencing the final value of a customer's purchase.
Cross-selling is an effective sales technique which, instead of imposing a purchase on customers, gently proposes it. Complementary selling increases customer lifetime value. The customer feels important because the brand cares about their needs by offering them additional products that may be useful to them.
Many consumers make decisions on an impulse. When the seller offers them a specific additional product that they themselves did not find in the store, there is a high probability that they will buy it.
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Cross-selling and up-selling
Cross-selling is often equated with up-selling. Although they are similar concepts, they involve slightly different mechanisms. Complementary selling is offering additional products, while up-selling is offering more expensive substitutes in order to increase the value of a single purchase. Shops often promote higher-end products as 'more likely to be chosen by customers'.
Both complementary sales and up-selling are excellent sales tactics that can easily increase the value of the transaction. A salesperson who wants to run an effective business should consider introducing both forms of selling.
Advantages of complementary selling - why implement it?
One of the biggest advantages of the complementary salesis the possibility to increase the value of the shopping basket without acquiring new customers. A customer who has already decided on a main product is more likely to buy additional items if they are presented to him in a logical and useful way. Properly designed complementary sales also shortens the decision-making process, as the consumer does not have to search for additives on his or her own. It is worth emphasising that a well-prepared offer complementary can enhance brand prestige and build the image of an expert in a particular field.
Which industries use complementary selling most frequently?
Complementary sales is used in a wide range of industries, but it is particularly popular with e-commerce, cosmetics, technology and automotive companies. In e-commerce shops, it is one of the primary tools for increasing revenue, with bags being offered for laptops and cases and protective glass for phones. In the cosmetics sector complementary sales often mean kits - cream with serum or shampoo with conditioner - resulting in higher sales and long-term consumer loyalty. These examples show that, regardless of the industry, it is possible to effectively implement a strategy based on complementary salesif you know the needs of your target group.
How to measure the effectiveness of complementary selling?
The effectiveness it gives complementary salescan be measured using several key indicators. The most important are the increase in average order value, the number of products added to the basket and the level of conversion from recommendations. Implementation of the strategy complementary sales also requires monitoring of customer satisfaction - relevant surveys and reviews will help determine whether the offer has been a good fit. Understanding, what is cross selling, allows the creation of more effective promotional campaigns based on analysis of purchasing data. It is also worth observing whether products complementary generate repeat sales and influence the frequency of purchases.