Let us bet that you have already been asked “Do you want fries with that?” at a Fast-Food restaurant or suggested “Customers also bought” on e-commerce websites. Those are the most common examples of cross selling strategies.
What is cross-selling?
Cross-selling is a marketing strategy that offers additional products or services to the ones your customers want to buy. By selling your admission tickets online, it increases the opportunities for cross-selling. Your cross-selling should occur at a strategic level of the online customer journey. When selling tickets online, you can take this opportunity to propose add-ons directly in the booking flow, before check-out, when receiving the confirmation email or when sending a reminder about the upcoming visit.
Why should you use cross-selling strategies?
Did you know that it is 5x to 25x more expensive to acquire new customers than retaining existing ones? And that retained customers are more likely to become loyal and return? By implementing well-thought cross-selling strategies, you increase the average basket size and the satisfaction of your customers at the same time. It is a win-win!
Offering add-ons becomes more than just marketing, it allows you to provide a convenient, complete and unique experience to your clients. You answer a need your customers might not even be aware they had and from now “it is less about the nice to have and more about the must-haves".
Here are the 5 main reasons why you should implement cross-selling strategies
1. Your order average value and customer lifetime value will increase
The offer of related or complementary products can increase your customers’ average basket size and value up to 30% of additional revenue. If done right, dynamic packages will also increase your customer satisfaction, which can lead to a higher customer lifetime value thanks to repeated purchases, brand loyalty and brand advocacy.
2. Your customers' experience will be enhanced
Make your customers' life easy by offering them more than admission tickets. Make available products such as F&B vouchers, merchandising, transportation or anything else your customers might need in order to capture maximum revenue and keep them from going to the competition. Sell a single ticket that can be scanned multiple times for all the activities and products available in your packages to offer a more convenient on-site experience.
3. Your additional profit will grow even more
When implementing a cross-selling strategy it is important to remember two golden rules:
- Your add-on products should bring value to your customers.
- It should be a high profit margin item such as a food voucher, so it doesn't cost you anything until redeemed.
Because 10% to 19% of add-on products bought in advance online are not used during the visit, they become pure profit.
4. You will be able to tackle revenue loss due to COVID-19 capacity restrictions
Limited capacities are not new, but they are even more relevant since COVID-19 regulations. Even if your demand might still be high, you might not be able to welcome all your potential visitors because of the restricted capacity. Thus, you lose revenue in the process. Increasing your average customer spending with cross-selling strategies can help you counter those restrictions and ensure your business’ profitability.
5. You will be able to connect with partner providers
Cross-selling does not need to be limited to products or services within your own offering. You can partner with other service providers who fulfill any gaps in the needs of your customers. For example, if you run an amusement park that does not offer any food and beverage point, you might think of partnering with the restaurant around the corner. Thanks to the creation of flexible packages and offers in association with quality partners, you will increase your customer satisfaction as well as capture more revenue.
How to ensure your cross-selling strategies bring value to your customers
Cross-selling needs to be handled with care to be successful. Your offerings should be based on real data, not assumptions.
1. Get to know your visitors thanks to your data
The first requirement is to know your customers.
- Who they are,
- How they behave,
- What they want,
- What they are looking for when visiting your venue.
2. Segment your participants
The second thing you should do is segment your visitors into different groups. Each customer is unique, but some customers may have many characteristics and behaviours in common.
3. Offer targeted add-on products
Finally, you need to adapt your offers to your groups by offering a range of add-on products with different prices (around 3 add-on with low, middle and high prices).
What add-ons to offer by industry
The products offered as add-ons can be adjusted to all industries. Here are a few examples:
- For theatres: a glass of champagne, tickets to a similar event, cloakroom tickets, etc.
- For museums: an audioguide, a guided tour, fast-pass tickets, merchandising, etc.
- For amusement parks: fast-pass tickets, food & beverage vouchers, hotel rooms, etc.
- For festivals: hotel rooms, transport, tickets for another day, etc.
A powerful solution to help you offer dynamic packages to your visitors
With Smeetz, implementing cross-selling strategies is child's play. You decide in advance and in total flexibility to which base products you wish to add a cross-selling option. The add-ons that you will have defined will be featured in a complementary way in the booking flow of your customer so that they can benefit from a unique experience.
What does a Smeetz add-on looks like?
Thanks to add-ons, you grow your sales by increasing your customers' average basket value, even if you are limited by total capacity. Take advantage of this opportunity to highlight your partnerships with other players in your region.