It’s a well-known fact that acquiring new business from existing customers costs a fraction of what it takes to acquire new customers. Also, many studies show that increasing customer retention by 5% can increase profits from 25-95%. However, the biggest challenge lies in creating an effective strategy to target the right existing customers.
One of the best approaches is to analyze your existing customers' purchase behavior across your business. Cloud retail analytics software, like www.lytty.com, can provide deep insights into different patterns of customer behavior. One important analysis is CROSS SELLING suggestions. Cross-selling involves promoting complementary products or services relevant to a customer's current purchase. Cross-selling is one of the most effective ways to improve sales from existing customers.
By analyzing customer purchase behavior, you can identify products that have a high correlation with other specific products. This means understanding what most of your customers are buying together. See the image below for an example.
From the dashboard above, you can see the highlights of cross-selling opportunities based on the analysis of customers who bought the 'Kanjivaram Saree Red 28' in the last year. And the insights are:
Like this, you need to Identify products with a high probability of being bought together or in subsequent purchases. Once you have these understandings, segment those potential customers and send targeted marketing campaigns to encourage them to purchase these high-probability products.
These insights should be treated as part of an omnichannel strategy, integrating this information in both your PHYSICAL STORES billing and your E-Commerce platform through proper APIs, ensures a seamless experience for customers across all channels.
This type of cross-selling strategy creates a win-win situation for both the organization and the customer.
If you are interested in learning more, get in touch with us at sales@lytty.com. We can show you how to leverage this feature in your retail business to increase sales significantly.
