Why cross-selling is important for organizations to increase revenue and improve member retention.
According to Fortune magazine, Amazon consistently ranks as the second most admired retailer in the world. One of the methods that the retail giant uses is cross-selling.
According to Fortune magazine, Amazon consistently ranks as the second most admired retailer in the world. This is no one-off occurrence, but the result of a carefully planned sales management strategy for its e-commerce platform.
One of the methods that the retail giant uses is cross-selling. This is providing the ability to offer a customer related products and services and to increase sales by encouraging customers to buy more than the original item. It allows the company to turn a low-profit customer into a profitable customer and profitable customers into very profitable customers by increasing lifetime value. It’s thought that offering individuals and businesses a greater choice of possibilities leads to improved customer satisfaction.
When it works, cross-selling is great for your association in terms of increasing sales revenue and improving customer satisfaction.
What is Cross-Sell?
Cross-sell invites customers to buy related or complementary items. Where it differs from other methods is in its implementation near the end of the sales pipeline. It’s important that association management software, like Nimble AMS, has the selling capability that considers how best to manage the transition of a member intending to purchase a specific item to a member coming away with multiple purchases.. A great example of this would be selling a study guide as part of a certification course or suggesting related events to book as part of a conference order.
“End users can buy supplementary or complementary products all in one space, saving time that could have been spent searching elsewhere”
Increased sales revenue and improved customer satisfaction
When it works, cross-selling is great for your association in terms of increasing sales revenue and improving customer satisfaction. The ideal situation is one where your existing members are not aware of a product or service that would improve their shopping experience. You find them on their journey at the ideal point, via their preferred contact method, and they react positively and go on to purchase the recommended product. The perfect strategy will offer products or services for your association that give your members added value. “It’s important to demonstrate the benefit to the customer,” says Sigmund VanDamme, Membership Software Evangelist of Community Brands and Founder of Nimble AMS, “End users can buy supplementary or complementary products all in one space, saving time that could have been spent searching elsewhere”.
Increased member lifetime value with greater versatility and choice
By integrating the ability to offer a range of related products and services in your business, you add increased value to your constituents and consequently increase customer lifetime value. Customer lifetime value (CLV) is one of the key stats likely to be tracked as part of a customer experience program. CLV is a measure of how valuable a customer is to your organization with an unlimited time span as opposed to just the first purchase. This metric helps you understand a reasonable cost per acquisition for each customer. Using it is one method for considering whether an item or a set of items is priced appropriately, if you are selling the right kinds of products, or if you need to adjust your strategy.
Enter cross-sell for Nimble AMS with a configurable carousel
Nimble AMS now offers associations the ability to offer an automated carousel of products and services with the cross-sell feature. When constituents are browsing through Community Hub to purchase a product or service, it provides an additional opportunity to purchase related products and services which may interest them. It’s a valuable way to increase member engagement and create customers for life with an enhanced purchasing experience. For example, once you have enabled cross-sell, you can choose what items are displayed at the bottom of the page for products, events, and membership types. The carousel can suggest specific products based on attributes or purchase history of individuals. It’s even possible to leverage the power of Einstein artificial intelligence algorithms to automatically suggest products to your members. From store orders to soliciting donations or booking tickets for upcoming events, it’s configurable and customizable.
Imagine being able to allow conference participants the ability to sign up for a membership, purchase a book, and donate to your foundation in the checkout area of Community Hub. Your members could also purchase clothing while also signing up for a magazine subscription or buy a set of learning materials for a course. The increased choice and range of possibilities will lead to satisfied customers, greater member engagement, and a better user experience for your association with greater lifetime value. For further details on how to use cross-sell to give your association’s members an Amazon-like experience, check out our help site.