Cross-Selling

Cross-selling aims to increase the value of each customer relationship. Since it is generally cheaper to sell to existing customers than to find new ones, cross-selling can significantly boost revenue and profit.

Examples are common in many industries. A bank might offer a credit card or insurance to a customer who has a current account. An online retailer might suggest a phone case and screen protector to someone buying a new phone. A software company might offer additional tools that integrate with a product a customer already uses.

For example, a customer who takes out a mortgage with a bank might also be offered home insurance and a savings account, increasing the bank's revenue from that customer.

Effective cross-selling focuses on products that genuinely meet the customer's needs. Pushing unsuitable products can damage trust and, in financial services, can lead to regulatory action. Some major banking scandals have involved aggressive cross-selling targets that led staff to sell products customers did not need, or to open accounts without customers' permission.

Cross-selling is related to, but different from, upselling, which encourages customers to buy a more expensive version of what they are already buying.