Cross-selling is known to be the type of a sale technique where a purchaser is made to spend more when purchasing a given product which is related to what has been purchased already. However, most of the times cross – selling do fail the company hence leads to a greater loss. I totally disagree with the author simply because of the following reasons:
Neglect to understand why consumers do cross- buy
Cross-selling when done effectively, there is no question or doubt that it will benefit the sale organization all because of the common question that rings in our minds of why would a customer want to purchase a whole broad portfolio from only one company? As we are aware, we need to consider the downside issues of original sources. In cases where there is no strong trust between the supplier and the company then the delivery of commodities, as well as quality and right-time delivery, decreases and this makes it harder for a company to compete in a competitive market.
The failures to identify potential customers who are likely to cross- buy
Many companies’ cross-sell programs fail during the identification process to advance their profile for an ideal cross-sell- target. Accompany should be able to know and tell the customers who mostly buy their commodities. They should also try to evaluate the chances of a previous consumer who had made a particular decision which led to the purchase if they will succeed again in buying the commodities to them again. Favorable conditions for buyers should also be on the lookout more organizational, demographic, and psychographic.
Cross- selling the wrong commodities
It is where an organization sells particular different products to the customer rather than the ones ordered. It may cause problems, and the company will have lost loyalty towards its buyers. Buyers will terminate their purchases from the enterprise as well.
Misunderstanding or incentives
Where a company does not know how to apply and understand the incentives, then the cross-selling operation won’t run out smoothly as compared to where all the conflicts incentives are well-taken care off.
Failing to measure the progress and success
Companies need to measure program success because the success does help evaluate their performance. For example, it may assist to answer the question of how many crosses- sells they accrued during a given quarter. Also, the progress tells if they are getting the results that every member in the company desires. Finally, if the company has implemented and executed the tactics required for replicating and advancing their success, it will be much easier to maximize profits.