Cross Selling - Meaning, Importance & Example

Published in Marketing and Strategy Terms by MBA Skool Team

What is Cross Selling?

Cross Selling is a sales or marketing technique in which a salesperson tries to sell an additional product or service which is mostly related to the original or primary product which the customer or client bought in the first place. The motivation behind cross selling can be either to increase the sales or have better relationship with clients. In a typical cross sell the additional product or service sold is mainly directly related (or complementary) to the primary product but it is not necessary. One company can cross sell a totally unrelated product to an existing customer through a lead or contact.

Importance of Cross Selling

Cross selling ensures additional sale of related products along with the primary product. Cross Selling serves two purposes

1. It makes additional sales and revenue for the company.

2. The inventory keeps moving

3. The customer gets more than what he/she intended to buy which adds to value

Cross Selling can happen in 3 types

1. Selling a complementary product to customer

2. Selling an unrelated product to existing customer

3. Selling a support service with a product or service

Sometimes cross sell can also be initially free of cost to the customer. e.g. Selling support service free for 1 year in purchase of a new laptop but after 1 year the service can renew with a cost hence completing the cross sell.

Example of Cross Selling

A very typical example of cross sell can be selling a handset case along with purchase of a new handset. If a customer buys a new mobile phone there are a lot of products and services which are available like cases, covers, insurance, service provider, internet packs etc.

All these products qualify for a cross sell opportunity.

Hence, this concludes the definition of Cross Selling along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.

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