It is important to understand the difference between cross-selling and up-selling. Cross-selling is basically the art of selling additional items to existing customers on a “horizontal” basis. For example, if any of your company’s salespersons were to sell additional parts, consumables, software, or peripherals/attachments to an existing customer, that would be considered as “cross-selling”. Similarly, selling additional units or devices to the same customer would also be considered as “cross-selling”.
Other examples of services cross-selling may include:
- Selling a preventive maintenance contract to an existing T&M or service agreement customer
- Selling training or consulting services to an existing services customer
- Selling software updates to an existing product customer
- Selling telephone hotline support to a customer who has historically only been using on-site field support (or vice versa)
- Adding other customer facilities (on other floors, or other buildings) to an existing service level agreement
- Selling service agreements for additional installed equipment at the customer site as a “package” with the existing covered equipment
Of course, there are numerous other examples of services cross-selling that would also apply; but it will ultimately be up to the onsite services technician (i.e., in many cases) to identify these opportunities on the basis of his or her direct experience in supporting both the customer and its installed base of equipment.
Cross-selling does not only apply within the product-only and services-only segments; in fact, some of the strongest cross-selling actually occurs between these two segments – going both ways. For example, if the service technician’s observations and experience suggest that a customer may have outgrown the capacity and capabilities of one of its units, then they may suggest that the customer considers acquiring a second, or third, unit. If this is the case, then it would be considered as cross-selling; however, if the most effective solution is to upgrade to a new machine, then that would be considered as “up-selling” (more on this later).
Examples of cross-selling between product and service may include:
- Selling any existing customer a service level agreement of any kind
- Selling any existing customer a preventive maintenance agreement
- Selling any existing customer advanced or remedial training, consulting, or engineering services
- Selling any existing customer any other types of services or support of any kind
Examples of cross-selling between service and product may include:
- Selling any existing services customer a product of any kind
- Selling any existing services customer parts, consumables, or other physical items
- Selling any existing services customer product and service “bundles”, or packages, of any kind
In addition to these various types of cross-selling, there are also many opportunities for simple, direct product-to-product and service-to service sales as well.
There is never really a bad time to cross-sell your customers. Chances are, if they’ve already got one of your company’s products, they are already using some of its services. If they are not using all of them, however, it may be either because (1) they don’t feel they need anything else from you in support of the equipment; (2) they are already acquiring these services from another vendor, or performing them themselves; or (3) they were unaware that your company offers them at all.
In the first two cases, it is simply a matter of your providing them with the relevant information for the first time; finding out whether or not they are interested in acquiring these services from your company; and, if not, simply making a note of your conversation for use at a later time. As situations change, the service technician may want to bring up the matter with them again in the future.
However, in the third case, it will be up to the technician to let them know that the company does, in fact, offer additional services; find out in which areas they may require additional support; and then match the company’s services offerings to the customer’s specific needs in the most effective manner. This methodology works well in both product-to-product and service-to-service sales, as well as across each of the two segments.
Some of the more opportune times to consider cross-selling the company’s products or services would be at the following:
- Leading up to, and within 90 days of, a service level agreement expiration
- When an existing unit’s warranty coverage is about to expire
- After one or more occurrences of equipment failure due to significantly increased volume, throughput, or overuse
- When a customer’s business is about to merge, or has just acquired, another business
- When a customer is about to relocate, consolidate, or expand its existing department or facility
Other times when cross-selling opportunities may abound include at the beginning of the customer’s annual business planning cycle (i.e., this is different for individual companies, but typically in the fourth quarter, or just after Labor Day), or at the end of a financial quarter or the company’s fiscal year. However, the service technician will need to check with each individual customer on a case-by-case basis to see what their respective financial planning cycles are before they can get a good feel for the proper timing for these potential opportunities.
Cross-selling is an integral component of any business’s sales and marketing program. It is generally embraced by most businesses, as the relative cost for doing so is typically quite low.
The benefit to the service technicians, however, regardless of whether the company currently has a cross-selling incentive program in place, is that they can assist in consolidating the installed base of the equipment that they will be servicing and supporting in the future by playing a part in the “clustering” of the respective installed bases of some of their customers, and this will probably result in less travel time required to support the same customer installed base. In any case, both the customer and the technician, and your company, win in any “cross-selling” scenario.