In this blog post we examine a few ways businesses grow their base faster by working on cross-selling marketing and up-selling to existing customers.
The two most common ways you can increase turnover through your business are to increase the number of customers you have AND/OR increase the value of your existing customers. Increasing your customer numbers can be hard. Finding leads can be a challenge, and even then, it’s not always easy to convert leads into customers. It takes time to build awareness, time to educate a prospective customer, and time to convert them into a buying customer. Most companies instinctively focus on finding new customers, but many fail to take the opportunity to address the customers they already have.
What is the difference between cross-selling and up-selling?
- Cross-selling identifies products that satisfy additional, complementary needs that are unfulfilled by the original item.
- Upselling, simply selling your customer a more expensive version of what they have already bought. Also, as profitable as cross-selling, upselling must involve careful planning and knowledge/interest of each customer.
Some example cross-selling marketing strategies that work to increase existing customer sales include:
- The “complementary or similar product” strategy
- The “sold separately” strategy
- The “We think you would like” strategy
- The “Customers who bought this product also bought” strategy
The role of direct marketing for cross-sell
Direct marketing works very well for cross-selling. To be properly implemented it requires individual offers tailored to the customer, then a vision of how to deliver the offers at scale using direct marketing channels. A key way to offer customers personalised offers is by using variable data publishing (VDP), by using VDP print marketers can generate individualised offers/content then broadcast it directly to the target audience.
Cross-selling marketing campaigns
Here at Gecko we use the market leading digital print technology (HP Indigo) to produce digitally printed media for our client’s cross-selling marketing campaigns. You as a customer are not bound to one choice of medium, with individualised offers the printed media means so much more now it’s not just ‘hello Bill’ in the salutations. Images of exact products or services can be included on direct mail creative that are relevant to the recipient.
The long-term effect of customer cross-selling on profit should not be underestimated. Keeping hard-earned customers buying once they have been acquired is one easy way to ensure business success. With rising costs and taxes associated with businesses today, it is becoming increasingly important to take a proactive role in cross-selling. By marketing to existing customers the benefits can cascade through a business, and seriously speed up the business growth.