Mastering Cross-Selling: Strategies and Benefits

“Would you like fries and a Coke with that?”

That’s a billion dollar question. Quite literally. Popularised by McDonald’s, this check-out question exemplifies one of the most successful cross-selling strategies in the fast food business. By suggesting a complementary product (fries and Coke) with a main purchase (burger),McDonald’s reportedly increases its average order value* by 15-40%*, contributing billions to their annual revenue.

But this point-of-sale mantra started way back in the 1970s for the fast-food giant. Today, cross-selling has become a lot more sophisticated – businesses have their own versions of “fries and coke” and interesting strategies to sell them. That said, many businesses, in their quest for new customers, continue to overlook this golden opportunity right in front of them: their existing customer base.

While companies spend hefty budgets on acquiring new customers, research by Forbes shows that existing customers are 50% more likely to try new products and spend 31% more than new customers. Cross-selling is a simple but powerful way to tap into this potential.

But how do you go about building a sophisticated cross-selling strategy that customers actually appreciate? The answer lies in data-driven insights and perfect timing.

Let’s break down how cross-selling works and why it’s worth mastering.

Table of Contents

• What is Cross-Selling?
• Benefits of Cross-Selling
• How to Implement Effective Cross-Selling Strategies
• Challenges in Cross-Selling
• Is Cross-Selling Always Beneficial?
• Conclusion: Maximizing Customer Value Through Cross-Selling

What is Cross-Selling?

📌Cross-selling is when a business suggests related or complementary products to existing customers or those already making a purchase. Unlike upselling, which involves upgrading to a premium version of the same product, cross-selling focuses on expanding the customer’s product portfolio.

These recommendations aren’t random but are based on what makes sense for the customer. For example, if someone’s buying a new laptop, offering an extended warranty or a laptop bag is a natural way to enhance their purchase.

Examples of Cross-Selling

Here are some examples of how cross-selling works in the real world:

💡E-commerce: A shopper purchasing workout gear might see recommendations for water bottles or resistance bands that complement their purchase.

💡Customer support: A business using an email helpdesk tool might find value in adding live chat to handle customer queries in real-time.

💡Hospitality: A hotel guest booking a room might be offered spa treatments or airport pickup services during the reservation process.

Amazon’s “Frequently Bought Together” feature is a great example of cross-selling done right. For instance, when you add a particular brand’s shampoo to your cart, Amazon might suggest soap or other daily hygiene products to compliment your original purchase. These are curated suggestions based on data showing what other customers, who have previously purchased this item, frequently buy along with it.

Customers appreciate the convenience, and sellers see higher sales — everybody wins. When done right, cross-selling feels helpful; not pushy and overwhelming.

Benefits of Cross-Selling

Cross-selling increases your sales while offering more value to your customers. Here are some key advantages:

1. Increasing Revenue

Cross-selling is great for boosting Average Order Value (AOV),which refers to the average amount of money a customer spends per transaction. When you recommend complementary products or services alongside the primary purchase, you increase the total spend for each customer. The higher your AOV, the more revenue you generate without needing to acquire new customers.

Let’s look at a few more examples:

• A business buys a high-quality office chair. Instead of just selling the chair, you cross-sell related products like a matching desk, ergonomic cushions, or a chair mat.
• The original purchase is a high-end office printer. Instead of just selling the printer, you cross-sell complementary products, such as a set of premium toner cartridges, an extended warranty, or a printer maintenance service.

According to a Shopify Cross-Selling Guide, businesses that effectively cross-sell often see a noticeable increase in their AOV.

2. Enhancing Customer Satisfaction

When you offer complementary products you’re helping your customers get more value from their purchases. This approach directly improves their experience by making them feel understood and well taken care of. McKinsey notes that 71% of consumers expect companies to deliver personalized interactions, and 76% are frustrated when that doesn’t happen.

Let’s think of a customer purchasing a camera. Said customer has bought these accessories that were offered to them — a carrying case, memory cards, and a lens cleaning kit. These products get them excited to use the camera. They are now able to enjoy their new purchase even more than they thought they would.

This is where cross-selling shines. It’s about meeting the unspoken needs of the customer.

3. Building Customer Loyalty

Personalized cross-selling strengthens loyalty by creating deeper, more meaningful relationships with customers. When you suggest products or services that align with a customer’s preferences or purchase history, it creates value. And when customers feel valued, they are more likely to stick around. Beyond immediate sales, personalized recommendations encourage repeat purchases, directly increasing Customer Lifetime Value (CLV).

For example, if a customer buys a face cream, offering them a bundle of complimentary products they need to create a skincare routine shows you’re thinking beyond the initial purchase. Now your customer doesn’t have to navigate the confusing world of beauty products; they can get it all in one place, from a brand they trust.

How to Implement Effective Cross-Selling Strategies

Now that we’ve established the importance of cross-selling, let’s discuss the ‘how’s’.

1. Leverage Customer Data

Data analytics is one of the most powerful ways to identify cross-selling opportunities. Use data to understand what your customers like, when they buy, and how they interact with your brand. Basis that, suggest products that truly complement their interests and needs.

Here’s how to make the most of customer data for cross-selling.

1️⃣Analyze purchase history

Use CRM tools to dig into your customer’s purchase history and identify patterns. Relevant items based on their past behavior will make the offer feel much more personalized.

Some CRMs help you analyze purchase history to cross-sell effectively:

• Salesforce: Allows businesses to track customer purchases and behavior, enabling them to suggest related products based on past transactions. It helps personalize cross-sell recommendations by forecasting which products are most likely to interest a customer.
• HubSpot CRM: Offers features like smart lists and workflows that can automatically trigger and send product recommendations based on customer data. The key is — right cross-sell offers at the right time.
• Zoho CRM: Provides sales teams with customer insights and the ability to create personalized, data-driven sales strategies. Its ‘Blueprint’ feature automates sales processes, ensuring that cross-selling opportunities are identified and acted upon at the most opportune moments.

Additionally, with Hiver’s Analytics, you can get insights into customer interactions and purchases across email, live chat, and support channels. By identifying frequently asked queries and recurring issues, businesses can pinpoint potential cross-sell opportunities. For instance, if multiple customers inquire about a specific product or request, Hiver’s analytics can track these patterns to guide support teams to recommend complementary items or upgrades.

2️⃣Segment Customers:

Segment your customer base by behavior, demographics, or purchase history. This lets you tailor your cross-sell offers based on what specific groups are likely to need.

For example, you could create a segment for first-time buyers, and another for repeat customers, and personalize your offers accordingly.

3️⃣Use Predictive Analytics:

Predictive analytics helps you understand what products your customers might need next. By analyzing past data, predictive tools can forecast future behavior and suggest complementary products before customers even know they want them.

An online retailer, for instance, selling tech products can use predictive analytics to suggest a new version of a customer’s recently purchased smartphone. If a customer has bought an iPhone 13, they may be interested in the iPhone 15 or relevant accessories as soon as they’re available.

2. Train Your Sales and Support Team

When you have a successful cross-selling strategy on paper, the next step is training your team to spot opportunities and communicate them in a way that feels natural and not forced.

Here are some important customer service skills, and tips on how you can train your sales and support team to identify and act on cross-sell opportunities:

1️⃣ Spotting opportunities in customer interactions:

Train your team to listen actively and look for cues in customer conversations that signal an opportunity for cross-selling. Using Hiver’s Collaborative Inbox, teams can share successful cross-selling conversations as templates and add internal notes about customer preferences. For instance, when a support agent discovers a customer’s interest in an advanced feature during a routine ticket resolution, they can log this information and loop in the sales team. This collaborative approach ensures no cross-selling opportunity falls through the cracks.

Collaborate across teams with Hiver’s Shared Inbox

2️⃣ Focusing on benefits along with features:

When cross-selling, you need to communicate how the additional product or service will improve the customer’s experience. Make sure your sales and support reps are not simply listing features but emphasizing the specific benefits of the complementary product instead.

For instance, when a customer subscribes to a cloud storage service, instead of saying “We have a file encryption add-on available,” a better approach would be: “Since you’re storing sensitive financial data in the cloud, I’d recommend our enterprise encryption add-on. It provides bank-grade security and detailed audit trails – this typically helps companies meet compliance requirements while reducing security review time by 60%.”

The key is connecting the dots between the customer’s needs and how the additional product provides tangible value.

3️⃣ Role-playing and scenario training:

This is one of the most effective ways to train teams. Simulate real customer interactions and challenge your team to identify cross-sell opportunities while keeping the conversation natural.

This helps them gain practice with handling objections, offering product suggestions, and guiding customers toward the right purchases without pressure.

4️⃣ Continuous feedback and support

Regular feedback on how your team is performing and ongoing training sessions will help your team refine their skills. Equip them with the tools they need — whether it’s a knowledge base, CRM insights, or scripts for handling objections — to keep cross-selling efforts sharp.

Remember (and remind your team) that objections are a natural part of the process. Having well-prepared scripts can help them address these with confidence. Here are some responses to common concerns:

💡“I don’t think I need this right now.”

Response: “I understand. Many of our customers felt the same way initially but found that this product solved (a specific problem). Would you like me to share how it might help you as well?”

💡“This seems too expensive.”

Response: “I hear you. While it may seem like a higher upfront cost, many customers have shared how it saved them (time/money/effort) in the long run. Would you like me to explain how?”

💡“I need to think about it.”

Response: “Of course. Is there any additional information I can provide to help you decide?”

These scripts aren’t meant to be rigid. They’re starting points that can be tailored to the conversation. The goal is to address concerns without pressuring the customer.

3. Offer Bundled Products

Grouping related items and offering them at a combined price can provide value and convenience to customers. Bundles simplify the buying process, encourage larger purchases, and create a sense of savings.

Picture this: A retail store creates a “Back-to-School Bundle” containing notebooks, pens, pencils, erasers, and a backpack. Individually, these items would cost $50, but the bundle is priced at $40. For parents preparing their children for school, this package saves both time and money while ensuring they have everything they need.

Kipling’s Back to School bundle offer

This approach doesn’t just work for retail. For example:

• Software companies can bundle tools like antivirus software, cloud storage, and a password manager.
• E-commerce platforms can offer themed packages, such as a “Holiday Baking Kit” with mixing bowls, measuring cups, and cookie cutters.
• Service providers can combine offerings like a streaming subscription with premium customer support for a discounted rate.

Here are some tips on how you can create effective bundles:

💡 Focus on complementary products. Combine items that naturally go together. For instance, a coffee machine with coffee pods and a cleaning kit.

💡 Set a clear value proposition: Highlight the savings customers gain by purchasing the bundle instead of buying the items separately.

💡 Test and optimize: Experiment with different product combinations to find what resonates most with your audience. Track the performance of bundles and adjust pricing or content based on customer feedback.

4. Utilize Digital Channels

Digital platforms open up new opportunities for real-time cross-selling. Tools like live chat, email automation, and in-app messaging allow you to suggest relevant products and services at the perfect moment.

1️⃣ Real-time cross-selling with Live Chat

Live chat tools help support agents offer personalized product recommendations while resolving customer queries. If a customer reaches out about a product they’ve purchased, the agent can suggest an accessory or a complementary item during the conversation.

Hiver’s Live Chat feature makes this process even easier by integrating directly into Gmail. Teams can manage live chat conversations alongside their emails, providing a unified platform for all customer interactions.

With Hiver, support agents can:

• Access contextual data: See customer purchase history and past interactions to recommend the most relevant products.
• Send recommendations easily: Share product links or bundle suggestions directly in the chat window.
• Enhance customer experience: Respond quickly and accurately, improving satisfaction and driving additional sales.

Let’s say that a customer browsing a tech retailer’s website starts a live chat to ask about a laptop’s specs. The agent not only answers the query but also highlights a discounted external hard drive and a laptop sleeve, making the customer’s purchase more complete and convenient.

2️⃣ Email automation

Use tools to send personalized product suggestions based on browsing history or past purchases. For instance, Brümate sends a follow-up email suggesting complimentary products when a customer buys their drinkware.

3️⃣ In-app notifications

SaaS platforms can recommend upgrades or add-ons based on user activity. If possible, allow self-service trials of complementary features. Take the example of the design tool, Figma. They effectively cross-sell by introducing their existing customers to their other product, FigJam, for white boarding and brainstorming.

Here are a few tips for utilizing digital channels for cross-selling:

💡 Keep it relevant! Recommendations should align with the customer’s preferences and needs. Irrelevant suggestions can be off-putting and feel pushy.

💡 Offer value: Highlight benefits, such as discounts or convenience, when suggesting products.

💡 Monitor engagement: Use analytics to track which channels and strategies work best, then refine your approach.

5. Monitor Perfor mance Metrics

Analyzing specific metrics will help you pinpoint what’s working, what needs improvement, and how to deliver more value. Here are some important metrics you should be tracking:

Suppose your analytics show that bundled products are converting well but recommendations during live chat sessions are underperforming. This insight allows you to train your team to fine-tune their approach during conversations or improve the timing of those suggestions.

For instance, Hiver’s CSAT surveys help gather real-time feedback from customers after interactions. Use these surveys to understand their experience and identify areas for improvement in your cross-selling efforts.

Measure customer feedback in real-time with Hiver’s CSAT surveys

Challenges in Cross-Selling

Cross-selling is highly effective but comes with its set of challenges. Mishandling strategies can frustrate your customers and damage relationships. Let’s break down two key obstacles businesses face and how to overcome them.

Avoiding Over-Promotion

One of the biggest pitfalls in cross-selling is overwhelming customers with too many offers or irrelevant products. Bombarding a customer with unrelated suggestions dilutes the value of your recommendations and could also drive them away.

Imagine a customer purchasing a basic pair of running shoes online. The retailer’s website bombards them with offers for unrelated products like camping gear, high-end headphones, and a luxury travel backpack.

Not only does this feel unrelated, but it also creates the impression that the brand is simply pushing products rather than understanding the customer’s needs.

Here’s how to avoid this:

• Focus on relevance: Use customer data to recommend products that complement a purchase. In the example of running shoes, suggest running socks, a water bottle, or a fitness tracker.
• Limit the number of suggestions: Instead of overwhelming customers with choices, prioritize two or three high-value, complementary options.

Ensuring Ethical Practices

Imagine a subscription service suggesting a premium plan to a customer who doesn’t need the extra features. While the company might secure a temporary upsell, the customer could eventually feel misled or even cancel their subscription altogether.

Here are some tips to stay ethical:

1️⃣ Be transparent and clearly explain the value and purpose of the suggested products.

2️⃣ Only recommend items that genuinely enhance the customer’s experience or solve a problem for them.

3️⃣ Respect customer autonomy by allowing them to decline offers without pressuring them into purchases.

Is Cross-Selling Always Beneficial?

Cross-selling, when executed well, can enhance the customer experience and increase revenue. And while it offers clear advantages, its success depends on how and when it’s implemented.

At its best, cross-selling feels natural and helpful. It’s about showing customers the right products at the right time — ones that genuinely meet their needs and simplify their decision-making.

However, without care and strategy, cross-selling can backfire, leaving customers feeling overwhelmed, manipulated, or undervalued. Aggressive recommendations can come across as insincere and create a negative experience, making customers hesitant to interact with the business in the future.

To strike the right balance and ensure cross-selling benefits both parties, it’s crucial to approach it thoughtfully:

• Know your audience: Use customer data to suggest products that add value to their specific purchase.
• Pick the right timing: Avoid inundating customers with offers mid-transaction. Instead, provide recommendations at natural points, like after the main purchase is complete.
• Respect their choices: Make suggestions, but leave room for customers to decline without pressure.

Conclusion: Maximizing Customer Value Through Cross-Selling

Cross-selling is a great way to increase revenue by understanding and meeting your customers’ needs. Solutions that add real value can turn simple transactions into meaningful experiences. We think it’s a pretty underrated way to retain existing customers.

The most effective cross-selling strategies use customer insights to make thoughtful, relevant recommendations. Use tools like Hiver’s live chat if you aim to make cross-selling feel personal. But it’s not just about the tools, rather, it’s about how you use them.

When done with care, cross-selling can strengthen relationships and help customers discover products that genuinely improve their experience. It’s a fine balance — show customers you’re focused on their needs, not just your sales goals, and watch as satisfaction and loyalty grow.

*by 15-40%*