If you have started a business or an eCommerce platform, cross-selling and upselling are two techniques you cannot avoid!
When it comes to enhancing profits, these two commercial strategies have stood the test of time. To become a seasoned businessman, you should know that the point of cross-selling is not to offer more and more products to your customer. It is all about offering the right product to the right customer.
As a seller, you must understand your buyers’ needs and provide them with nothing short of real value. But here’s the catch! How do you know what to recommend to your customers? That is where AI can come to your aid! Don’t believe us?
Read on to learn the cross-selling meaning and how to make the most of AI to boost cross-selling.
What is Cross-Selling?
Cross-selling refers to the marketing technique that involves selling complementary or related products to an existing customer. For example, if you are in the financial services industry, you can sell different types of products to investors. So, if a client has a mortgage, you can try to sell them a savings product or a personal line of credit.
How Can AI Help In Cross-Selling?
AI is no longer science fiction but has become a trusted companion to businesses trying to improve sales. If you are a business owner, you can now use AI to identify all the leads that are most likely to convert.
And once the leads are identified, AI can further help you boost cross-sales for every individual lead. Here is how you can do it:
Ways To Achieve Relevance And Increase Cross-Sales
As we have mentioned before, to boost cross sales, the most important thing is to recommend the right service or product to the right people. To estimate product relevance for a lead, you can study factors like:
- Frequency of visits
- Number of times a product is viewed
- Ratings of products
However, with the advent of AI, your sales team no longer needs to do all the hard work. Taking all the above-mentioned factors into consideration, Artificial Intelligence (AI) algorithms are parameterized and activated. By analyzing the entire history of interaction with a lead and previous sales data, AI can now tell you what products will most likely attract them.
AI will ensure that your leads only get product recommendations that they actually ‘need.’ This completely eliminates the need for your sales team to guess what your customers might be looking for. That’s of great help because it reduces the risk of annoying your existing customers with the wrong suggestions in your attempt to boost cross-selling.
Using AI To Boost Cross-Selling In B2B And B2C Businesses
In B2B businesses, you can use AI to enhance cross-selling and improve customer satisfaction. This will help you increase Customer Lifetime Value (CLV) by ensuring that you are better integrated into the customer’s business. And at the same time, it will also drive up your sales.
Back in 2006, Amazon revealed that a whopping 35% of its sales came from cross-selling. And now, you, too, can use AI to improve cross-sales in your B2B business and make your profits skyrocket.
That’s not all! AI can help you incredibly in improving your B2C business as well. When it understands customers’ needs, AI algorithms can quickly and accurately determine what your leads are looking for. If the customers fail to find what they are searching for, they will exit your website and move to another one.
Put AI algorithms to best use and rest assured, this won’t happen! Machine learning algorithms will help your customers find exactly what they are looking for. And at the same time, AI will also show them other relevant products, thereby increasing your cross-sales.
For example, if you are selling coffee makers, AI algorithms will direct your leads to coffee filters and beans they can purchase.
Boosting cross-sales with the help of AI is something that every business owner should make use of.
If you are not using it already and only relying on your sales team to predict suitable products that customers need, you are already lagging in the game. Buckle up, put on your best hat, and use AI to drive up your sales!