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Cross-Selling Strategies for Today's Consumer

The word on the street is more doom and gloom. Stores are closing. Big stores, well-established, storm-weathered stores. But this is a different kind of storm. And if the big guys can't make it, what chance does the small, local, independent guy have? One might say that for the first time in a long time, the little guy has a better chance.

Independent stores have a big advantage today. Like the small, privately-owned companies that have driven much of the growth in the juvenile products industry over the last five years, store owners are able to quickly implement new strategies and new ideas faster than the larger big chain stores. They can be more selective in their product choices, and more narrowly focused so as to carve a niche for themselves that is both more affordable and easier to manage. Specializing in a particular category, say "green" baby products for example, allows you to narrow your buying to the best products in that category and become the go-to resource in your local neighborhood and beyond.

Once you've carved your niche and created a compelling reason for consumers to visit your store, the question still remains, how do you generate and increase sales? The goal is not only to get customers into your store and to make a purchase while they're there (and to get them to come back again and again), it is perhaps even more important to expand the breadth of their purchase. When consumers are watching their pennies, it becomes harder and harder to convince them to plunk down $200.00 for a fancy diaper bag. But they might be willing to spend that amount on two or three products that they need and want.

In today's economy, we need to find ways to help make purchase decisions easier and more efficient for the consumer. Offering product lines at lower price points, with the opportunity to sell multiple products together, is one way to increase overall revenue. Taking a tip from the virtual retail world, brick and mortar stores can employ similar cross-selling tactics that combine a stable of products within the store.

"You might also like..." suggestions seen in online retail environments can also be applied in the real world. For example, grouping products by color or theme rather than by category or brand is one way to help a new mom put together a look of matching items to fit her lifestyle. Gift ideas that bundle together a few small items within a theme is another way to make the shopping experience easier and more turn-key, helping the customer navigate the store and find more to buy.

In-store promotions offering discounts on product add-ons is another great way to increase the number of items "added to the cart." Buy item A, get item B for a percentage off or other gift-with-purchase offers are tried and true promotional tactics that work.

In order to compete in these economic times, manufacturers must work together with their retailer partners and with each other to create synergies and efficiencies and share them. Stores can seek out manufacturers that are offering joint programs on products that can be sold together. More and more, companies are joining forces to offer bundled, coordinating product lines that can be sold together for a lower cost. Manufacturers are willing and able to support retail promotions and cross-selling strategies as they face similar challenges in a declining economy.

Look for a new way to grow your business, by offering products that can be sold together as one bundled purchase, making it easier and more attractive for both you and the end consumer; two matching products that can be displayed, advertised and sold together at a better price point than sold separately. Look for a program that delivers a competitive advantage that both manufacturer and retailer can leverage so that ultimately together we can win over that elusive consumer we are all vying for.

In a sea of competition and declining sales, retailers and manufacturers must band together to offer compelling product choices at the right price point, that make the buying decisions easier for the consumer. Cross marketing and merchandising strategies that help sell not just one product but two or three together is a way of making everyone happy.

It's a win-win-win.

Editiorial provided by Karen Rappaport, co-founder of My Royal Heinie.