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Cross merchandising links products from different categories to generate sales. Retailers can display items that logically go together, enticing customers to buy more. This strategy benefits both consumers and retailers, saving time and increasing sales. Logical connections between products are important for success.
Cross merchandising is a marketing strategy that allows you to generate sales for products that fall into different categories by linking them in the minds of consumers. In a retail setting, this can mean configuring displays that include two or more different products, but can logically be used together. The idea is to entice customers who have come in to purchase a particular item to also purchase other items that are on display in the same area and which can be used in conjunction with the first item.
One of the best examples of cross merchandising is in the electronics section of a retail store. In a section where stereo sound systems are displayed, store management may choose to display items such as batteries, universal remotes, speaker wires, or possibly even a small selection of popular music CDs. Therefore, a customer coming in to buy a new compact stereo system may choose to also pick up a universal remote that will operate the system as well as other electronics the consumer already owns. At the same time, the customer can also collect batteries for the remote control and purchase a new CD or two to play on the stereo system.
Employing the concept of cross merchandising has benefits for both consumers and retailers. For consumers, the ability to gather everything needed to go with a product without going down multiple aisles saves time. At the same time, the retailer has the opportunity to sell other items at the same time, while building customer loyalty with those who value being able to get what they want in one aisle, rather than traveling down several aisles. The end result is that retailers increase sales and consumers are more satisfied with the shopping experience overall.
For cross merchandising to work, it is important that the products displayed together have some sort of logical connection. For example, a more elegant man would not display men’s ties next to women’s lingerie and expect to increase sales. However, if those ties are displayed with a selection of men’s suits and accompanied by items such as dress shirts, cufflinks and lapel pocket handkerchiefs, the possibility of cross-selling items increases significantly.
The cross merchandising strategy can be used in virtually any retail environment. Movie rental stores can create a display with a specific group of movies and include candy bars, sodas, and popcorn in the same display. Perfume counters in department stores may also display scented lotions and soaps along with perfume bottles. Sporting goods stores may display helmets, tire repair kits, and bike gloves near a bike rack. As long as the elements displayed together have a logical relationship to each other, the strategy is very likely to work.
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