Boost your revenue with secondary sales
Are you looking for ways to increase your sales revenue? Cross-merchandising is a marketing strategy where products or services from different categories are displayed (or grouped) together in one spot. By doing this, you make your customers aware of new and different items, encouraging them to purchase more than they originally intended.
For example, if you sell plants or flowers, you could display fertilizer, gardening gloves and watering cans next to them. If your restaurant has a website with a takeout or delivery menu, you could display suggestions for side dishes or desserts to go with someone's order. The receptionist at your spa could tell clients about complementary services when they book appointments for treatments.
Stay one step ahead of the customer
To get the most from secondary sales, you need to plan ahead. Know what your customers' goals are (saving time, affordability, convenience, quality, etc.), and know your inventory, so you can target your audiences with appropriate add-ons. Market research can help you with this.
Create a strong, appealing visual
When you stock your shelves, create window displays, or plan the design and layout of your website, you allow customers to visualize an entire project or event, whether it's redecorating a bedroom or planning a ski trip. Take advantage of opportunities to augment seasonal sales year-round, with displays of summer picnic gear, back-to-school collections, or holiday meal planning. As your customers start experimenting with groups of products, they will create their own add-ons, develop brand loyalty, and reward you with their repeat business.
Calculate the ROI
Make sure that the space you're devoting to cross-merchandising is worth the return, and doesn't add unnecessary clutter or prolong a customer's checkout. Re-evaluate as you go; if certain items are not moving, try to figure out why. If you can't change customer behaviour, consider re-allocating the space. You can track the effectiveness of your efforts by managing your inventory and comparing online and offline traffic.
By capitalizing on your strengths, understanding your customers' needs, and evaluating your efforts, you will be able to deliver the most effective combinations of items, and in turn, build your revenue.