Cross-Sell

In cross-selling, a sales associate or customer service agent is able to combine the original sale with other products. In many cases these cross sells are for an extended service contract for an appliance, computer equipment, or other hard good. This is not to say that value isn’t being offered. In the case of online services, like email marketing newsletter software providers, it benefits their customers to add additional services that allow them to streamline communications beyond their subscriber lists with social network integration. Users are happy that their tracking metrics are easily integrated, while the company is satisfied with a better customer relationship.

The obvious objective is to increase the income that flows from each client, thus increasing profits, or to protect or continue the existing relationship with the client. Companies often prefer to increase the revenue per client and profit from servicing a single account versus many accounts. Also, selling many services to a single client decreases the likelihood that the company’s products will be replaced by competitor products.

Often, sales representatives or marketers will evaluate their customers to determine their additional needs. The company may then market to this additional need, sell an add-on service to the customer’s existing account. For example, a company might realize that the customer needs to track their web traffic, and sell them a separate tool for this need. Companies also may cross-sell a product and its solution. In this case, a company may sell a store franchise, and then installation services– the solution to their new product.