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Business organizations all over the world are striving hard to evolve strategies to survive in the new competition ushered in by globalization. Over the decade, customer expectations have risen by leaps and bounds. Customers continue to become more sophisticated and interested in innovative products and customized services. They are becoming more and more un-predictable in their wants and needs. At the same time they continue to expect and demand more ‘Value’ from brands. [Value – defined as creating for its buyer in excess of the costs and what the buyers are willing to pay]. Corporate strategies are designed to deliver products or services that satisfy consumers. The underlying principles of all the business organisations today are profitability and sustainability. Thus, the two strategic objectives of any business organization are to provide a broad variety of products and also maintain a high level of customer service. Many small efforts lead to completeness and completeness in itself is not a small thing in itself-Aditya Vikram Birla. The key to effective selling can be achieved by giving attention to little details and a high degree of ‘innovation’ (in organizational context it involves creation or alteration of business structures, practices, and models, and may therefore include process, marketing and business model innovation). These are the propelling forces that will lead businesses to new high growth trajectory. I would be discussing some of the ‘lesser traveled’ functionalities in Sales and distribution module in SAP which can make a difference with a little creative and innovative set-up. Concepts like Cross-Selling, Dynamic Product Selection, Bonus Buy, Rebates, etc would be discussed in my imminent blogs. CROSS SELLING Remember your last visit to your corner Fast food joint where while buying the burger, you were asked the famous question, ‘Do you want fries and coke with that?’ or while buying grocery at the near-by Mall you found that with your favorite toothpaste, you can get a tooth-brush either free or at a discounted price of 70%. Better still, with the winter coming to an end, almost all the major stores are running sales with BIG signs of ‘Get one free on purchase of two, etc. This practice of offering an additional product to a customer who just made a purchase is popularly known as Up/Cross selling. These days the customer needs a lot more than the simple solution/product they first consider. By grouping together several different products and services, one can give the customer a more advanced package that goes much further toward creating a satisfying customer. Cross selling is a strategy of sales promotion technique through which an effort is made to sell a product to a customer that is related to another product that the customer already bought or uses. It offers a wider range of the products and services and drives more value in a comprehensive way to meet their needs and demands. In today’s retail world, the cross-selling functionality is no longer a novel concept, rather as the technology is bringing more visibility to consumer buying pattern; Cross-selling is being used to sell more products to the consumer. Cross-selling can be used to increase the customer’s reliance on the company and decrease the possibility of the customer switching to a competitor, it can be used to clear inventories of slow-moving items, can be for a seasonal product with a large stockpile for which the end of the selling season is approaching or can even be used for a product that the organization has decides to drop from its assortment. Examples of Cross/Up-selling can be as follows: a) Bundling several related products or services together. Drop the price below what the total would be if the customer bought all the products separately. b) Compliment the products with Accessories: It works fine by itself, but it REALLY works when you add THIS”. c) Offer Good Deal on the bulk selling products for the products which are either having success or are popular with the customers Successful Cross/Up-selling needs to be at the core of every business or professional practice. It can really multiply the profits of any organization. In my next Blog, would be discuss the set-up and the common queries for the Cross-selling.
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  1. SANTIBHUSAN RAO
    Really nice overview.

    I would like to add/ share few more points to your views which I have come across in real time.

    Cross- Selling concept: TWO ADVANTAGES

    1) At one stage, Cross-Selling concept not only benefits the consumer but also helps the company in many angles.

    2) Cross-Selling concept not only enhances the selling capacity of different other brands, it also helps to liquidate your own slow moving items (or models of same brand), which otherwise, would not have been sold in the regular market.

    In this scenario, sometimes you get the offer of some other models of the same brand with lesser price or more discounts. For example: you have a model “A”, “B” and “C”. “A” is a regular & fast moving model with more demand in the market. The other two models “B” and “C” are non moving models. If you do not liquidate the stocks of “B” and “C”, the overall stock value at the company is unbearable. So to liquidate that, you will find many promotions clubbing these models (“B” & “C”) to the model “A”. So many times you will find the ad/ banner stating “Buy model A and get 20% off in model B or C”.

    By doing so, you are not only holding your customers but also reducing the non-moving stocks, which otherwise would have affected the stock holding capacity.

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