You may not even know what cross merchandising is, but you certainly saw this strategy when you went to the market. Used to increase sales, the method consists of promoting different products together.
When the point of sale (POS) does this, unconsciously, the consumer is encouraged to buy more than he imagined. Deep down, buyers believe they are looking at a good opportunity.
Better understand what this strategy is and how it can be applied in your business!
- what is cross merchandising;
- advantages of this strategy;
- how to apply cross merchandising.
What is cross merchandising ?
As already mentioned, cross merchanding is an advertising term that represents the practice of placing two different products close together at the time of sale. To understand this idea is quite simple.
Chances are you’ve seen packages of grated cheese between the shelves of pasta. It is no accident! Like pasta packaging, cheese is also there to be sold, but in a slightly different way.
Consumers will not buy the cheese, which is in a different place, because they were looking for it. In fact, when they are buying the pasta and they see the other product, they will remember that they also need it.
There are three types of cross merchandising . They are:
- product alignment with the customer: based on consumer behaviour, it is possible to create associations between different items. Example: wine and cheese;
- live marketing: includes interaction with people, such as tasting new foods;
- experiences: occurs when creating a scenario for the place of purchase, thus, the customer feels how the product can be used.
What are the advantages of cross merchandising?
The main advantage of cross merchandising is to make consumers interested in more products and, consequently, buy more. In addition, it is important to note that this marketing strategy generates little cost for trade.
To cross-advertise, you must study customer behavior to identify opportunities. However, you will not need to spend more on advertising or any attraction technique.
Another benefit of this strategy is that it improves the consumer experience, which makes him have a positive perception of the business.
How to implement cross merchandising ?
For this strategy to have the desired effect, it is important to consider some aspects. Look at that!
Analyze which products are complementary
In addition to the classic example of macaroni and cheese, many other products are complementary and can be placed nearby. In a sports store session, it is possible to advertise a cell phone with a waterproof camera.
Regardless of the product category, it is very likely that he has a complementary product. Think about what can be used together or what improves the experience of those who visit your business.
Use the data
Unsure about which products to advertise? Check your sales data to better understand your consumer.
Find out which products are most and least sold. From there, you can analyze whether any of them match each other. That way, you will take advantage of the popularity of something that is already out to boost sales of an item that is less purchased.
The cross merchandising works only when the consumer feels he is gaining something for taking more than was originally planned. With this in mind, it is important that the main product is the one with the highest price.
Thus, the customer will think that the new item will not make the account more expensive. So, the chances of taking both products are greater.
Think consumer intent
By putting yourself in the shoes of the consumer, you avoid a series of mistakes that you could make. In a session of organic pasta, for example, there is no point in adding industrialized tomato sauces. The customer looking for this corridor is unlikely to buy anything that is not natural.
So, it doesn’t help that the products match each other, it is necessary that they are associated with the consumer’s desire. So, you don’t run the risk of doing cross merchandising without a well-defined strategy.
Another way to attract the attention of consumers is through live marketing, that is, experiences. To promote a new wine, for example, you can offer a cheese.
Even if it has a cost to the business, the value is still low compared to the benefits of presenting the products and increasing the power of persuasion. Not to mention that these tastings help to improve buyers’ perception of their trade.
As seen, cross merchandising is a low-cost strategy that helps to attract public attention to some products, boosting sales. It is widely used in the market, where similar or complimentary items are placed next.
Whether for convenience or sense of opportunity, the consumer tends to buy. For this method to guarantee the expected results, it is important to take some precautions.
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