Description
Cross-selling is the action or practice of selling among or between clients, markets, traders, etc. or the action or practice of selling an additional product or service to an existing customer.
Cross selling
• when you fail to sell smart, it’s bad. When you have a solution that your customer should have bought, but didn’t, you not only left the sale on the table. • Expanding the number and quality of relationships between key people in the buying organization and the selling organization is cross selling. • Making additional relevant solutions available to the buying organization (e.g., new products) is cross selling.
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Cross selling
• Cross-selling starts with taking a larger view of the client organization. • looking at all the possible relationships involved, and where those relationships intersect with the number of relevant solutions for that customer. That “intersection” is the cross in cross-selling (see graphic). • Moving the intersection “north” and “east” on the graphic opens up a much wider target of opportunity.
• New mothers buy clothes for their babies and then buy for themselves as well.
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Process of cross-selling
Step 1: Identify Opportunities Cross-Sell
• Make a list of your top customers. • Next to each customer, list the products or solutions they have purchased from you. What do you see? • Most likely this exercise will uncover a large area of opportunity with certain customers who have purchased only one or two of your solutions.
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• Step 2: Develop the Key Characteristics of Your Target Customer Once you have a product in mind that you want to cross sell, create a list of key characteristics of your target customer. • Step 3: Compare and Select Key Customers to Pursue Go back to the first list you made of your top customers. Which of these customers present characteristics of the target customer for your new solution?
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Up-selling
• Up-selling means securing a larger commitment: a commitment to buy additional units or a more expensive, premium version of the solution. • This doesn’t mean selling the customer something they don’t need; it does mean selling the customer more of something that they do need. • In this case, what’s good for the customer is also good for you: the cost and risk of an upsale is significantly less than that of an original sale.
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• it is critical to leverage quality business information. By taking the time to gather in-depth information about customers and prospects, salespeople can gain a greater insight into their accounts, uncover new business opportunities.
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Roadmap: Setting Your Course
• There are three primary steps that sales professionals must take in order use information to cross-sell and up-sell more effectively: 1. Select the right targets 2. Understand the customer’s business issues 3. Present a Valid Business Reason • Each of these steps demands increasingly deeper understanding of the customer’s key initiatives and the big issues that transcend all the potential buyers within the organization
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Behavior Prediction
This uses past consumer behavior to foresee the future behavior of their customers. This analysis includes several variations. 1. Propensity-to-buy analysis- understanding what a particular customer might buy. 2. Next Sequential Purchase- predicting the customers next buy. 3. Product Affinity Analysis- Understanding which products will be bought with others. Also known as market basket analysis. 4. Price elasticity modeling and dynamic pricingdetermine the best price for a given product.
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The marketing decisions that come for this analysis: 1. Preemptively offering discounts or fee waivers to existing customers who are at risk of churning. 2. Refining target marketing campaigns so smaller customer segments or specific products. 3. Packaging certain products together and fixed-pricing them to sell more products and increase their profitability. 4. Cross-selling products likely to be purchased with other products.
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Customer Profitability and Value Modeling
• Customer Profitability- deals with the company’s view of the possible profit to be made from its customers. • Value Modeling –deals with the value of the customer’s other features like ability to bring in more profitable customers or the potential to be a more profitable customer. • Value modeling is only as accurate as the customer’s data is rich.
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Channel Optimization
• Offering the right message to the right customer at the right time. • Example: Customers who us Internet banking services might prefer a new emailed offer with their regular statement and a customer visiting a branch office might prefer a cup of coffee along with a brochure. • Once you understand the channels your customers prefer to interact with your company you must then decide what is the best way to communicate with them.
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Personalization
• This is the capability to customize customer communication based on knowledge preferences and behaviors at the time interaction. • Examples: a site you bought CD’s from greet you and offers you CD’s that are of your favorite artists when you enter the site or the home shopping channel operator greets you on when you call and helps you quickly purchase what you need and all because you shopped there once before.
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• The first example used variable insertion to personalize the site for the current customer because it had information recorded from the last transaction. Over time, the customer is more and more known to the company through study of the customer’s profile: data, past purchases, click stream data, and web survey responses. Then the company knows what to offer the customer to entice them to buy more or keep them from churning. • Example: if a person responds to a discount on skis then they might also buy cold weather apparel. • Using personalization can take out he guess work in your business. • Personalization in the B2C space is based on studying click stream data (one’s navigation path through a company’s Website.
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Event Based Marketing
• This is a time sensitive marketing or sales communication reacting to a customer-specific event. • Example: sending an application for collision insurance to people who recently had a car accident. • Businesses today are to focus in on the individual customer in a real time situation and get away from the blank event-based marketing. • An example of this ideal goal of reacting to customer’s event in near real time is: when a customer receives coupons at the store, right after their purchase, that they might be interested in.
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doc_281506958.ppsx
Cross-selling is the action or practice of selling among or between clients, markets, traders, etc. or the action or practice of selling an additional product or service to an existing customer.
Cross selling
• when you fail to sell smart, it’s bad. When you have a solution that your customer should have bought, but didn’t, you not only left the sale on the table. • Expanding the number and quality of relationships between key people in the buying organization and the selling organization is cross selling. • Making additional relevant solutions available to the buying organization (e.g., new products) is cross selling.
1
2
Cross selling
• Cross-selling starts with taking a larger view of the client organization. • looking at all the possible relationships involved, and where those relationships intersect with the number of relevant solutions for that customer. That “intersection” is the cross in cross-selling (see graphic). • Moving the intersection “north” and “east” on the graphic opens up a much wider target of opportunity.
• New mothers buy clothes for their babies and then buy for themselves as well.
3
Process of cross-selling
Step 1: Identify Opportunities Cross-Sell
• Make a list of your top customers. • Next to each customer, list the products or solutions they have purchased from you. What do you see? • Most likely this exercise will uncover a large area of opportunity with certain customers who have purchased only one or two of your solutions.
4
• Step 2: Develop the Key Characteristics of Your Target Customer Once you have a product in mind that you want to cross sell, create a list of key characteristics of your target customer. • Step 3: Compare and Select Key Customers to Pursue Go back to the first list you made of your top customers. Which of these customers present characteristics of the target customer for your new solution?
5
Up-selling
• Up-selling means securing a larger commitment: a commitment to buy additional units or a more expensive, premium version of the solution. • This doesn’t mean selling the customer something they don’t need; it does mean selling the customer more of something that they do need. • In this case, what’s good for the customer is also good for you: the cost and risk of an upsale is significantly less than that of an original sale.
6
• it is critical to leverage quality business information. By taking the time to gather in-depth information about customers and prospects, salespeople can gain a greater insight into their accounts, uncover new business opportunities.
7
8
9
Roadmap: Setting Your Course
• There are three primary steps that sales professionals must take in order use information to cross-sell and up-sell more effectively: 1. Select the right targets 2. Understand the customer’s business issues 3. Present a Valid Business Reason • Each of these steps demands increasingly deeper understanding of the customer’s key initiatives and the big issues that transcend all the potential buyers within the organization
10
Behavior Prediction
This uses past consumer behavior to foresee the future behavior of their customers. This analysis includes several variations. 1. Propensity-to-buy analysis- understanding what a particular customer might buy. 2. Next Sequential Purchase- predicting the customers next buy. 3. Product Affinity Analysis- Understanding which products will be bought with others. Also known as market basket analysis. 4. Price elasticity modeling and dynamic pricingdetermine the best price for a given product.
11
The marketing decisions that come for this analysis: 1. Preemptively offering discounts or fee waivers to existing customers who are at risk of churning. 2. Refining target marketing campaigns so smaller customer segments or specific products. 3. Packaging certain products together and fixed-pricing them to sell more products and increase their profitability. 4. Cross-selling products likely to be purchased with other products.
12
Customer Profitability and Value Modeling
• Customer Profitability- deals with the company’s view of the possible profit to be made from its customers. • Value Modeling –deals with the value of the customer’s other features like ability to bring in more profitable customers or the potential to be a more profitable customer. • Value modeling is only as accurate as the customer’s data is rich.
13
Channel Optimization
• Offering the right message to the right customer at the right time. • Example: Customers who us Internet banking services might prefer a new emailed offer with their regular statement and a customer visiting a branch office might prefer a cup of coffee along with a brochure. • Once you understand the channels your customers prefer to interact with your company you must then decide what is the best way to communicate with them.
14
Personalization
• This is the capability to customize customer communication based on knowledge preferences and behaviors at the time interaction. • Examples: a site you bought CD’s from greet you and offers you CD’s that are of your favorite artists when you enter the site or the home shopping channel operator greets you on when you call and helps you quickly purchase what you need and all because you shopped there once before.
15
• The first example used variable insertion to personalize the site for the current customer because it had information recorded from the last transaction. Over time, the customer is more and more known to the company through study of the customer’s profile: data, past purchases, click stream data, and web survey responses. Then the company knows what to offer the customer to entice them to buy more or keep them from churning. • Example: if a person responds to a discount on skis then they might also buy cold weather apparel. • Using personalization can take out he guess work in your business. • Personalization in the B2C space is based on studying click stream data (one’s navigation path through a company’s Website.
16
Event Based Marketing
• This is a time sensitive marketing or sales communication reacting to a customer-specific event. • Example: sending an application for collision insurance to people who recently had a car accident. • Businesses today are to focus in on the individual customer in a real time situation and get away from the blank event-based marketing. • An example of this ideal goal of reacting to customer’s event in near real time is: when a customer receives coupons at the store, right after their purchase, that they might be interested in.
17
doc_281506958.ppsx