Cross-selling is a sales tactic that involves offering other products or services that complement the product the customer is interested in, at the point when the customer is ready to buy.  For example, when you go to a movie theater and you order a large popcorn, the person behind the stand will likely ask if you want a large coke with the popcorn.  This suggestion of another product (large coke) that complements the product being purchased (large popcorn) is called a cross-sell.

Since 34% of prospects will buy additional products or services if they’re asked, Cross-selling can significantly increase your profits.  Remember: the key is to ask and ask well.  Cross-selling is not just offering customers other products to purchase; it requires skill. The business must understand consumer behaviors and needs and how complementary products fulfill those needs and add value.

For instance, using our movie theater example, if you order that large popcorn and the worker asks you if you want a pack of cigarettes with that popcorn, that is always going to be a “no.”  The reason being that people going to movie theaters don’t smoke and the suggestion in this case does not complement the product already being purchased.  However, the large coke does because if a movie goer is ordering a large popcorn, they’re hungry and if they’re hungry, they are going to get thirsty.  So when they get offered the coke, that’s going to be a “yes.”  This creates an understanding of your average customer and their needs. 

In turn, this understanding will create loyalty and increase your revenues.