Cross-selling isn’t just about boosting revenue—it’s the retention strategy you didn’t know you needed. Customers with multiple products stick around and spend more. Here’s how to make it happen.
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Let’s talk about cross-selling for a minute or as some of you call it, share of wallet selling.
But it’s that act of making sure that your customer is buying more than one product from you so that they have a diversified portfolio.
Most people think of this as a growth exercise, which it is, right? The more they’re spending with you, the more you grow.
But a client shared this about their retention rates with me recently.
They discovered that they have a 60% churn rate when their customers only buy one product from them.
When customers buy two products from them, they have about a 25% churn rate.
When customers buy three products from them, they hold on to 99% of their customers.
From 1 to 3 – it’s a dramatic difference. So shared wallet or cross-selling isn’t just a growth exercise, it’s a retention exercise.
Yes, your revenue is accelerating and probably faster than just selling to net new customers, because existing customers tend to close at a higher percentage and a higher rate than your new customers.
But you’re also hanging on to more business.
So every year, as you retain that business and your customers continue to grow with you and you add new customers over here, your business starts to grow at above market rates.
So what are you doing this year to cross-sell your customers with the complementary products that they need in order to allow their business to thrive and allow you to retain their loyalty?
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