Cross-selling

Definition

Cross-selling is a sales technique used to encourage customers to purchase additional items that are related or complementary to a product they are already considering or have purchased. The goal is to increase the total value of the transaction by suggesting products that enhance the main purchase or fulfill a related need. This strategy often appears as 'frequently bought together' or 'customers who bought this also bought' sections on e-commerce websites.

Why It's Important for E-commerce

Cross-selling is crucial for e-commerce businesses to maximize Average Order Value (AOV) and customer lifetime value (CLV). Effective cross-selling relies heavily on accurate and well-organized product information, which PIM systems excel at managing. By centralizing product data, including attributes, categories, and relationships between products, a PIM enables businesses to present relevant, personalized recommendations to customers. This not only boosts sales but also enhances the customer experience by helping them discover products they might genuinely need.

Examples

• A camera store recommends memory cards, extra batteries, and camera bags when a customer adds a DSLR camera to their cart.
• An online fashion retailer suggests a matching belt, shoes, and jewelry on a dress product page.
• A coffee bean subscription service offers a discount on a coffee grinder when a new customer subscribes to their premium blend.
• An outdoor gear shop uses PIM to link hiking boots with appropriate socks and waterproofing sprays.
• Presenting 'frequently bought together' sections on product detail pages, populated with related products identified through PIM-managed product relationships.

How WISEPIM Helps

• **Manages product relationships:** WISEPIM allows defining and managing explicit relationships between complementary products, essential for accurate recommendations.
• **Centralizes rich product content:** Ensures all suggested products have complete, engaging content, making cross-sell offers more appealing.
• **Enables personalized recommendations:** Feeds product data to recommendation engines, powering relevant cross-sell suggestions based on customer behavior.
• **Supports dynamic product bundles:** Facilitates the creation and management of product bundles for promotional cross-selling across various channels.

Related Terms

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