Cross-selling is one of the best ways to increase your average order value (AOV). You can move inventory and increase revenue by showing your customers other items. Cross-selling is one of the best strategies for increasing sales; it is key to know how to leverage it effectively.

Understanding Cross-Selling

At its core, cross-selling is a strategy where a brand suggests products related to products the customer has already purchased. For example, if a customer buys shoes, the brand may offer socks, shoe laces, or shoe cleaning products. 

This strategy has many benefits, as it increases revenue and AOV, improves the customer experience, and helps brands test how new products perform. Cross-selling differs from upselling, which is where brands convince customers to upgrade their items. However, both are effective strategies that increase revenue and AOV. 

How to Step Up Your Cross-Selling Game

You must understand your customers well enough to know what they are interested in buying. Relevance is critical, as customers are more likely to shop at your store if they feel understood and valued. Customers do not want random offers unrelated to their interests, so brands need to use their customer data to offer relevant products. Take a look at some of the ways to improve your cross-selling. 

1. Make It Personal

The most crucial step in cross-selling is to make your offers personal. You need to use their purchase history and any other available data to offer them items they are interested in purchasing. 

You can use SMS commerce on your website, emails, or even social channels to start conversations with your customers and send them offers post-purchase. If you use SMS during checkout, let them know about complementary products they can add to their cart. 

You should avoid pressuring your customers to buy items they may regret later, as this is rarely successful. You end up with more returns or refunds. Instead, use your customer data to suggest relevant items by showing them rather than "selling" them. When they see the value, they will purchase without force.

2. Make Sure That You Know Your Audience

You should use data to segment your customers based on shopping behavior and other demographics. Look at what they have placed in the cart, where they browse, and any communication history. This will help you choose the most effective techniques for cross-selling. 

Using conversational commerce to communicate with your customers is a great way to learn more about them. You should have it easily accessible for customers to opt-in on your site. In addition to communicating with your customers, you are gathering relevant and personalized information to more effectively serve them in the future. 

For example, if your customer makes a purchase, you can send a message offering related products. Combine this offer with a promotion or a limited-time discount, and give them the option of making the purchase in-message in a few clicks.

3. Cross-Sell By Offering a Discount

Offering a discount is still one of the most effective strategies for cross-selling. Customers feel valued when you make these offers for relevant products they have been eyeing and will be more likely to purchase. 

You can show it to them at checkout or send this offer post-purchase. Tell them they can purchase the complimentary items for a limited time for a discounted price. Customers view the discount as a lower-risk purchase and appreciate being treated like a valued customer. 

4. Make It Easy 

Customers today are looking for simplicity. They are happier when there are fewer steps to completing a purchase, which means that brands need to do whatever they can to simplify the experience. 

If your customer has items in their shopping cart, you can have a message come up with complementary products, and the only step is for them to click it to add to the cart. If you have their payment information on file, you can send the product recommendation via SMS, saying, "Reply "Buy" to complete the purchase." When they reply "Buy," a new message will confirm the payment information, and the sale is complete. When you make it easy, customers are more likely to purchase multiple times from you.

Effective Strategies for Cross-Selling

Many brands cross-sell on the individual product pages. They show customers related items, which helps them make the purchase. Another place to cross-sell is on the checkout page. You can have a space that shows items frequently purchased together or show them how other products complement what they already have in their cart. 

By sending out a simple text message that allows them to add another item, modify an order, or purchase one they need, you can increase your customer lifetime value (LTV) by as much as 30%.

Research shows that over 90% of text messages are opened, and the customers most preferred way of communicating with brands. It is simple, efficient, and straightforward, and as long as your messages are personalized and relevant and your process is user-friendly, customers will keep coming back.