what it is, how to help with sales and 7 ways to apply it to your POS – WAU
Buying is more emotional than logical, and only those who understand it can sell more. Cross Merchandising is one of the simplest ways to activate the desire to buy without the customer noticing. Learn more in this article!
Every customer thinks he buys only rationally. At the same time, every (good) salesperson knows that rationality and logic do not make up half the decision factor.
Emotion is key in the quest for customer confidence, and anyone who understands the rules of this game gets results much more expressive than most.
But the question still remains: what to do to ensure that both the customer’s emotion and reason say “Yes” to their products? One of the best ways to achieve this is with Cross Merchandising.
In this article, we will show:
What is Cross Merchandising?
First of all, the explanation of the term: the English term “cross” means “cross”, while “merchandising” is related to advertising products and services.
Thus, the term represents a kind of cross-promotion of products. But what does this mean in practice?
In a very direct way, Cross Merchandising is the practice of placing products of different categories side by side in order toIncrease the sales.
At first it may seem strange, but think about the big retailers and how they do it all the time. Of course, the choice of which products to put together is not random.
On the contrary, the idea is to use items that, although they apparently do not have the same final objective, complement each other perfectly – even if only in the customer’s mind.
How can Cross Merchandising help sales?
As already mentioned, Cross Merchandising has been used for a long time by major retail chains around the world. These companies have professionals specialized in consumer behavior, so we can say without fear that the tactic works.
What is the logic behind it? By placing products that complement each other side by side, it is possible to stimulate the desire to purchase more acutely.
In other words, the customer himself convinces himself to buy more than he had initially thought. But what leads to this? The direct and immediate association that the brain makes between products and the benefits they present.
That is why you usually enter the market and see small stations of various types, such as the already traditional stall with all the items needed for barbecue (from farofa to the meat board).
For the customer this is just a way to make the search more convenient. But note that the initial idea was not always to have a barbecue. Even so, many take something else, just to “seize the opportunity”.
7 tips for using Cross Merchandising with mastery
Now that you have understood Cross Merchandising, and realized how it has been in your daily life for longer than you imagined, it is time to learn how to use it.
And the good news is that it is not just the large retail chains that can make use of this technique. Within your point of sale (or even adapt to your seo-commerce) just apply the principles that we will show below:
1. Find out which products can complement each other
First of all is the most obvious point of Cross Merchandising: the product combination. If you don’t know what is complementary, your path will get much more complicated.
For this, there are several forms of combinations. One option is to put together several products that are used for the same purpose. For example:
- Tomato Sauce;
- grated cheese;
- among others.
An electronics store could set up a product session for those who play sports. In that case the best course of action would be to put it together, for example:
- a waterproof smartphone;
- a sports camera;
- a smart watch with wristwatch, calorie counter etc.
2. Set up magnetic display cases
Your windows need to do more than showcase products. It is very likely that customers are already familiar with the type of product you offer.
You have to tell stories, make the person see yourself using the product you sell.
And when you manage to print this destorytelling level in the window, all the products that make up the scenario become attractive to the customer.
3. Use the data to your advantage
The simplest combination of items you can do comes through a few basic steps:
- see what are your best selling products;
- find out which smaller items tend to be purchased with certain frequency by those who purchase these items;
- understand why the secondary product complements the best seller;
- create a combination between the two products, in a way that has to do with what you discovered in step 3.
4. Create theme stations
We have already talked about two examples of combinations that could serve as ideas for thematic stations: the barbecue items stand and the electronic products section for sportsmen.
But why is this kind of idea so relevant? Why do you use the same principle as the magnetic showcase, only inside the store and not in front of it. This helps to create a vivid image in the person’s head and bring them closer to the purchase.
5. Sell incrementally
Generally, the combination will have one main product, the one that most people look for, and another one for convenience. The primary product should be the one with the highest price, while the secondary product should appear only incremental.
The idea that the buyer should have when seeing the two items together is “Wow, since I’m here, I’m going to take this product too, my account won’t even increase much.”
6. Create the experience in the customer’s mind
There is an important sales principle that is “don’t talk, show”, and it applies very well here. Not even the most striking discount poster can speak as loudly as an intuitive and consistent product mix.
The person’s first reaction is to see the two items together, in a pleasant experience. That’s where the emotional part of the purchase is made. The most he needs to do next is see if the price gets in the way or not.
But the point is: no need to tell the customer that the combination is good. This has to be evident as soon as he looks at the products together.
7. Think of the buyer’s ultimate goal
Finally, run away from the opposite of what we just talked about. Always think about the objective with which the customer went to your establishment. More than that, why is he in that session, looking for that product.
This will help to avoid combinations that hinder sales, rather than helping. A person who goes to the organic session seeks to eat healthier.
She probably doesn’t want an industrialized sauce full of sodium to go with it. A recyclable bag or fruit wrap would make perfect sense.
What are the 2 simple types of Cross Merchandising you need to apply?
There are different ways to apply Cross Merchandising in your business. We will delve deeper into two of them. Both are simple, but perfect for you to start feeling the powerful effect of this strategy.
1. Live Marketing
Live Marketing is the famous tasting. If you are going to promote a new wine brand, how about putting together a quality cheese? If you are promoting a new type of coffee, why not add some selected breads or cookies?
This practice is worthwhile because it is simple, much appreciated by customers and with low cost of implementation at the point of sale.
2. Customized experience for the customer’s profile
Not every combination seems to make sense at first. But ask yourself: how can I go beyond the obvious? You and your teammarketing they need to think with the minds of their customers to find out what will work best.
How many times have you gone out to buy an item and returned with something else that was not planned, but that would be useful for your personal use?
It is this “something else” that you need to discover to make bolder and more personalized combinations.
Think, for example, of the barbecue themed area that we talked about earlier. Perhaps you realize that your customers, barbecue fans, also enjoy fishing. In this case, the ideal combination would be to include some fishing items close to the thematic session.
For those who look outside, it doesn’t have much to do. But the customer could like it and buy more. Of course, this involves testing and a lot of common sense, but it is worth doing research and testing it in practice to see what works.
Cross Merchandising is one of the simplest and smartest ways to drive cost-effective sales. The reason is simple: this strategy activates convenience and impulse in the customer, two factors of great importance in the purchase decision.
Now just put the tips we show here in practice to have more sales and more and more satisfied customers.
Still not sure how to set up your point of sale? Learn now with these 5 practical Merchandising tips that we have prepared for you!