Customer-centric product research is crucial for an effective cross-selling strategy. It involves understanding customer needs and overcoming cross-selling challenges, and integrating new technologies into products to address these issues. A systematic approach accelerates product development, improves them over time, and enhances cross-selling opportunities.
Some of the most effective B2B cross-selling strategies in APAC and quality cross-selling recommendations include:
Bundled Product Packages:
Dodging APAC Market Curveballs with AI-driven Bundling
A/B testing and AI models are being used to predict successful product bundles in APAC B2B markets. Product bundling, a strategy of packaging complementary items, is effective for SaaS products and can increase customer engagement and extend customer life cycles. Despite only 32% of websites effectively attracting cross-sells, B2B companies can leverage this strategy for economies of scale and value-for-money discounts. Customizable product bundles can also reduce user acquisition costs.
Product bundling benefits include:
- Increasing the average order value (AOV) by 5.6% to 30%.
- Reducing the inventory turnover ratio by 17%, leading to faster sales and less storage space.
- Increasing the transaction amount by 9.2% to 24%, depending on the bundle design and customer segment.
Extensively Applied Product Bundling Tactics in APAC
- Buy more save more
- Bundling commonly brought together items
- Bundled subscriptions of the same product in multiples
Making use of customer data to find what products are bought together frequently helps B2B ecommerce businesses cross-sell to their customers. While gauging the effectiveness of a great product bundle might take years of experience, however, it has been distilled down with this case study from the APAC region.
Adobe’s Mastery in Product Bundling in APAC
Adobe’s Creative Cloud is one of the finest specimens of product bundling, which includes a variety of creative software applications. This bundle has proved to be phenomenal in Adobe’s revenue growth, with an impressive $2.68 billion in revenue, out of Adobe’s total revenue of $4.53 billion in Q4 of 2022, indicating a 13% YoY growth.
Customer Referral Program
Leveraging People Power for Better Lifetime Values
A well-structured customer referral program benefits from the effect of community driven sales while lowering the cost per acquisition dramatically, at the same time, increasing customer lifetime value. This qualifies customer referral programs as perfect cross-selling tactics with a huge boost in customer loyalty. Word-of-mouth marketing through customer referrals is undeniably formidable when it comes to grabbing an early market share and outperform competition in the long run.
Customer Referral Program Models and Tactics in APAC
Right timing, right incentives, seamless process of referrals, timely reminders, introduce bands of customers as per loyalty are some of the best tactics that bring enjoyable outcomes. Creating a successful customer referral program starts with the perfect mix of these strategies. After a thorough analysis of the market with the help of AI-driven data analytics tools, arriving at a winning referral program is easy.
Dropbox Revs up its Revenue with its Splendid Referral Program
Dropbox's referral program, offering extra storage to both parties, led to a 60% rise in signups. This resulted in a growth from 100,000 to 4 million users in four months, with 35% of daily signups in September 2008 attributed to referrals. The program caused a permanent 60% increase in signups, doubling users every three months and leading to a 3900% growth over 15 months. By 2017, Dropbox had nearly 34 million users. This highlights the effectiveness of customer referrals in driving increased growth and revenue.
Extra Resources for Multi-buyers
Save Costs by Cross Selling Extra Resources for Multi-buyers
Increase the perceived value of a product for higher customer loyalty and lifetime value by providing extra resources to customer who buy more than one product or are repeat customers. Providing extra resources for multi-buyers as a cross-selling strategy can lead to increased sales by encouraging customers to add more items to their carts. It can also reduce costs by batching several items in one order, thus saving on packaging, shipping, and labeling costs. Furthermore, this strategy can increase customer lifetime value and reduce overhead costs, ultimately increasing net profit.
Getting Customers Buy More with Cross Selling
Cross-selling to customers who buy multiple products can be achieved by bundling related products together, offering freebies and discounts. This can be particularly effective as it provides customers with a comprehensive solution. Suggestions of additional resources can be made throughout the buying process, based on the customer's purchase history. The key to successful cross-selling is ensuring that the offer is relevant and provides more value to the customer.
Starbucks’ Loyalty Rewards Cross Sells Upto 40% More Products
Starbucks Rewards, with 28.7 million active members as of October 2022, has significantly contributed to Starbucks' profitability. The program accounts for 53% of U.S. company-operated revenue and 40% of total sales, leading to a rise in same store sales by 7%. This has driven customer loyalty and increased Starbucks' revenue.
Design Complementary Products
Ecosystem of Products that Work Well Together
Designing complementary products for cross-selling can increase sales, improve customer experience, and build stronger brand loyalty. It can also provide a competitive advantage, enhance understanding of customer needs, and increase the customer lifetime value. The key to success is to clearly communicate the benefits of using the products together and make it easy for customers to purchase multiple items.
Apple’s Success from Designing an Effortless Ecosystem of Products
Apple's success is largely due to its strategy of designing and selling a range of products that work seamlessly together, encouraging customers to purchase multiple items. This approach has led to significant growth, from $8 billion in 2004 to over $274 billion in 2019. Moreover, Apple's updated app puts cross-selling front-and-center, allowing the company to take advantage of its large base of loyal customers who own multiple devices.
Loyalty Program for Multi-buyers
Loyalty Program for Frequent Buyers for Cross-selling
Loyalty programs for multi-buyers can significantly increase overall revenue by 5-10% and improve customer retention, as loyalty members buy 5-20% more frequently than non-members. These programs can also enhance upselling and cross-selling efforts by using collected data to offer extended warranties, suggest accessories, and provide discounts on related purchases. Additionally, they can increase demand in slow seasons and have a positive impact on purchase frequency, transaction size, and further cross-buying.
Tactics for Cross-selling in APAC: Loyalty Programs for Multi-buyers
To enhance a loyalty program for multi-buyers for cross-selling, create structured opportunities where customers earn perks based on their buying patterns. Educate team about the loyalty offerings to effectively use them in upselling and cross-selling efforts. Develop a dynamic loyalty strategy built around a fluid partnership of products, services, and experiences. Balance monetary rewards with experiential offerings and tap into complementary product and service offerings to create a brand ecosystem.
Sephora Rewards Loyal Customers with its Beauty Insider Program
Sephora's Beauty Insider program is a rewards system where customers earn points for every dollar they spend. These points can then be redeemed for products. The program is divided into three tiers: Insider, VIB, and Rouge, each with its own perks like free shipping, exclusive access to products and beauty events, samples, gifts with purchase (GWP), early access to sales and more.
The impact of this loyalty program on Sephora's growth is significant. The program boasts 17 million members in North America alone, who are responsible for 80% of the company's sales. This engagement leads to a 22% increase in cross-sell and a 13-51% increase in upsell revenue. It's clear that the Beauty Insider program has been a key driver in boosting Sephora's growth.
Email Marketing for Related Products
Leveraging Email Marketing for Related Products for Cross-selling
Email marketing for related products can significantly increase sales and improve customer retention by satisfying all customer needs. It allows for a personalized approach, making more tailored offers to customers, ensuring their higher satisfaction. This strategy can drive repeat purchases, increase customer lifetime value, and is effective for both cross-selling and upselling. Combining upselling and cross-selling in an email marketing strategy further enhance these benefits.
Amazon Experiences 35% Boost with Personalized Emails
Amazon's personalized email strategy, based on browsing and purchasing history, significantly contributes to its success. In 2021, about 35%(argoid.ai) of Amazon's sales were via recommendations, which are based on a user's past interactions and interests. Studies show that 80% of consumers are more likely to purchase from a brand that delivers personalized content. Personalized email messaging holds a major share in Amazon's revenue model.
Free Trials of Complementary Products
Leading Free Trials to Recurring Buyers
Offering free trials is a common strategy used by software companies to attract new users and encourage them to become paying customers. Companies typically employ one of two strategies once a trial period expires: they either apply an auto-renewal policy, automatically charging the subscription fees, or they deny access, enforcing manual opt-ins after the free trial ends.
Apply Free Trials for Complementary Products for Cross-selling in APAC
To apply free trials of complementary products for cross-selling, businesses should identify complementary products and offer them as free trials. This can be done when a customer orders a product, or through sponsored ads. Follow-up emails after the trial can further promote the products. The aim is to enhance the customer experience by offering value-added products and services.
Microsoft’s Dynamics 365 Sees 45% Q3 Growth with its Free Trials
Microsoft Dynamics 365 offers its B2B customers complementary product 30-day free trial. For instance, if a customer is using Dynamics 365 Sales, they will be able to try Dynamics 365 Customer Service lfor free. This allows existing customers to try out the other offerings from Microsoft with no additional cost. This strategy has contributed to its significant growth over the years, with a 45% revenue growth in Q3 and nearly 16 million monthly active users for Microsoft Power Platform. Free trials have played a vital role in attracting new customers and retaining existing ones.
Pro tips to get started with cross-selling the right way:
To maximize resources, APAC marketers should adopt strategies that ensure effective cross-selling and compound growth. Success in cross-selling relies on data-driven tactics for cost-effective results. Key strategies include compliance with security regulations, lead generation, email marketing lists, content syndication, omnichannel marketing, and SaaS marketing. These strategies are crucial for streamlined cross-selling.
