We’ve touched on the difference between cross-selling and cross-store selling in another article before, but it’s a topic worth exploring a little more because they are often confused in today’s online marketing climate.
Cross-selling is the act of selling related or complementary products to a customer on top of their existing purchase. For example, you might attempt to sell a top or a jumper to a customer on top of their original purchase of a pair of jeans.
Cross-selling as a business strategy
It’s one of the most common ways for DTC businesses to increase their revenue for a number of reasons. Firstly, it cuts down on their customer acquisition costs because they’re profiting from selling multiple products to the same customer, driving up their Average Order Value (AOV).
Furthermore, since they’re building upon a relationship with an existing customer instead of attempting to draw in a new one, they are able to put their existing insights and information about the customer’s interests to use in order to complete the sale.
For example, a business is able to tailor the products they suggest to their customers to better match their existing basket or purchases, increasing the success rate of the cross-sale.
Let’s talk about Cross-store selling!
Cross-store selling builds on this basic idea, but takes it to an entirely new level. By partnering with a brand that sells products complimentary to your own and selling their stock in with your own collections in your store, you are much more likely to be able to complete the cross-sale so that both partners profit.
Think of it this way: a customer is browsing your online store and adds a few items of clothing to their basket. Normally, they’d go to check-out, complete their order and that would be that.
Its all about complimentary items
However, if you partnered with a brand selling shoes and advertised their products alongside yours, the customer would be drawn by the complimentary items and would be more likely to buy them there and then, driving up your AOV and generating additional profit for both partners.
Not only does this benefit you, but it makes the customer’s life a lot easier as well: they’ve not had to search around for other stores to buy new shoes for their outfit, saving them time and hassle and elevating their simple shopping trip to a true omni-channel retail experience.
They’ll remember the time they saved shopping with you and will keep coming back for more, and you’ll be able to capitalise on this thanks to the customer insights you gained from their first purchase with you. It’s a win-win!
As you can see, then, cross-store selling is providing the answer and the future of online shopping, giving the customer exactly what they want in an age where speed and convenience are key to elevating their online shopping experience. Sign up to CrossMyStore now to be able to make the most of this opportunity!