Cross Selling: Providing Edge to the Business
Introduction: Cross Selling is a feature which is used to suggest related product or service when customer is placing an order. This enables organization to bring to notice of customers about more products that they have for offer. This results in win-win situation for both parties involved; with organization providing comprehensive view of product listing and customer getting more options of products to buy from single supplier. Example while selling burger, a fast food service suggests us to buy Potato fries as well.
This marketing technique is being used across industry by companies to get edge over their competitor.
Problem Statement: A customer plans to buy a certain product from a company. Customer is not aware about different offerings that company has. He has decided to buy as per his mindset and behavior pattern. Company is already ensured that customer has made a buying decision. Now it’s in interest of company to recommend customer to buy certain other products also along with baseline product. This scenario can be applicable to any industry from online sales, retail sales or sales done through telephone calls.
Scenario: This document purviews scenario specific to Agriculture industry. Some specific seeds business is very short lived. About three-fourth of years’ time goes in sowing seed. Post harvesting, sales cycle is short lived for two to three months only. Organization has to ensure maximum sale in such a narrow time line. Also they have to ensure that there is no product left over from a season else otherwise it will have to be discarded.
Additionally in Agriculture industry sales is also driven by external natural factors like soil condition, temperature, precipitation and humidity content of an area. Detailed sales analysis can help to get comprehensive view on external parameters impacting sales.
In today’s industries, most of the sales are done for repeated customer. Most revenue is made by business by engaging repeated sales with existing customer, rather than adding new customers. Cross Selling enables companies to analyze behavior pattern related to product. Customers’ feels more connected with companies owing to such offers and thus resulting in higher customer satisfaction.
Feature like Cross Selling can act as a boom for such industries which have similar features.
Cross Selling – Company recommends other “Product 2” as well.
Cross Selling System Setup – Solution for implementing cross Selling purviews four major activities
- SAP Configuration
- Master Data Setup
- Condition Records
- Item Category Determination for usage “CSEL”
A) SAP Configuration:
Path for Cross Selling configuration is as followed
IMG –> Sales and Distribution –> Basic Functions –> Cross Selling.
Node 1 – Define determination procedure for cross selling
In this process, prerequisites for condition technique are maintained.
– Create Access Sequence and assign condition table to it. You can also create or assign Requirement routine based on business requirement.
– Create Condition type and assign Access Sequence to it
– – Maintain Procedure with correct condition type.
Node 2 – Maintain Customer/Document Procedures For Cross Selling
Like normal pricing procedure determination, for cross selling also needs certain combinations needs to match .
This encompasses combination of “Customer Procedure”, “Document Procedure” along with “Sales Document Type”.
i. Define customer procedure for cross selling
ii. Define document procedure for cross selling
iii. Assign document procedure for cross selling to sales document types
Node 3 – Define and Assign Cross-Selling Profile
i.Define cross-selling profile
In this step we create selling profile and assign to cross selling procedure.
Cross-Selling dialog box ind. Allowable values are –
Also we have option to check “ATP” for cross selling material.
ii.Assign cross-selling profile
In this step, created Cross-Selling profile is assigned to combination of Sales Organization, Distribution Channel, Sales Division, Cross-Selling Customer procedure and Cross-selling Document Procedure.
B) Customer Master Data Setup:
Correct assignment of Customer procedure should be done in Sales View of Sales Area Data of customer.
Correct Cross-Selling customer procedure should be assigned.
C) Cross Selling Condition Records:
T.Code is VB41
Path –> SAP Menu –>Logistics –> Sales and Distribution –> Master Data –> Products –> Cross Selling –> Create
-In this step we maintain condition record for Cross Selling Condition type.
-Here we maintain various materials, which can be proposed as cross selling option for given material.
D) Item Category Determination for usage “CSEL”:
Item Category determination for additional product is based on usage “CSEL” (Cross Selling). Thus it’s mandatory to do configuration of item category determination for Sales Document type, Item category group, Usage (CSEL) and High Level category (Item category of main item)
Above mentioned setups ensure that Cross-Selling SAP solution shall work.
While creating sales order, pop up comes providing cross selling option provided all required settings are correctly maintained. Quantity can be entered for sub item on the pop up screen. Once quantity is entered, click on copy button.
If sub item is not required, then cancel button can be clicked. In such case sales order will be created only with the main item.
To track whether Cross Selling functionality is working correctly, you can switch “ON” Cross Selling analysis while creating a sales order.
Below is Cross Selling analysis done by system based on condition records
Program SDCRSL01 can be used to understand behavior pattern. This feature can help to do sales analysis & understand which products are usually purchased together. Based on this logic correct Cross Selling condition records can be maintained.
Benefits of Cross Selling:
Following Benefits can be reaped using efficient Cross Selling Solution –
1) 1) Companies ensure maximum sales in given period of sales season
2) 2) Retaining Customers with increased profit.
3) 3) There is lesser chances of discard required for leftover stock
4) 4) Higher level of customer satisfaction as they feel more connected
5) 5) Better traceability of products for companies and thus supply chain can be planned more efficiently.
6) 6) Win-Win situation for both parties involved. Company as well as customer.
7) 7) From system point of view, master data maintenance is simple. Only Customer master needs to be maintained correctly
Limitations of Cross Selling:
Following are limitations related to Cross Selling Solution –
1) Cross Selling cannot be used along with Product Proposal functionality
2) Cross Selling functionality cannot be enabled for Scheduling Agreement
3) For Sub item of Cross Selling product, further cross selling proposal cannot be done. This mean cross selling can work only at one level; it cannot be further extended for sub items.
4) Sub item quantity is not proposed automatically. It requires manual entry.
1) VB41/VB42/VB43 – Create/Change/Display Cross Selling “Condition Records”
2) OV41 – Change View Cross Selling “Access Sequence”
3) OV42 – Change View Cross Selling “Condition Types”
4) OV43 – Change View Cross Selling “Procedures”
5) OV46/OV47/OV48 – Create/Change/Display Cross Selling “Condition Tables”
6) SE38 – To execute Programme SDCRSL01
7) VOV4 – Item Category Determination