The terms cross marketing, cross marketing or cross selling, refer to a concrete and simple way to increase sales. Fundamentally to a sales strategy consisting of selling complementary products or services to their clients.
What is cross marketing?
The basis of this technique is that it is easier to sell to customers than to people who are not yet. On the other hand, it is common that customers do not know all the products or services of a certain company and that, along with the best-selling products, there are another series of products or services complementary to the former.
The goal of cross-selling is none other than to increase total sales, without too much effort, simply by increasing the average transaction.
Very close to this strategy is the so-called up-selling the incremental sale, which takes place when what it is about selling to the company's customers is a version of the same product or service that they have already bought, which provides them with more value, and, therefore, has a higher price.
In general, it can be said that cross marketing is a very effective strategy. It is simply a matter of reminding customers, or telling them, if they do not have such information, that in addition to the products that the company buys, it has other related products.
Sometimes companies focus on the most profitable products, neglecting the potential of others that may be less popular. The advice that cross marketing provides is that related and less popular products can have great potential for the business, when using this type of cross selling.
In short, it is about making products or services more visible that were not so visible. Furthermore, the concentration of profitability of the company in few products, although it is efficient according to the Pareto principle, it also carries significant risks. Especially if one of those more profitable products fails to sell well.