Software Tips

Basics of Cross Merchandising

In the retail and marketing of products, there is a need to be savvy and to understand exactly how to go about getting the results that you desire. One of the methods that marketers employ, in their bid to achieve increased sales, is known as cross-merchandising. This is a simple yet powerful marketing concept or practice that entails displaying products from different categories together. The idea is to rake in additional revenues for the retail store. It also help stores stay ahead in a competitive industry.

Cross merchandising can also be referred to as add-on sales, secondary product placement, or incremental purchase. The main aim of employing this strategy is to sell products that are complementary or that can be used in association with the primary product or with each other. 

It can also be used as a way of improving customer experience where they can pick up analogous goods in the same area rather than moving around and looking for them.

The goods that are placed together should not just by any group of random goods. They should have relevant connections that can cue a buyer into realizing they need the other product and pick that too alongside their original product choice. Depending on the store arrangement, the products may share the same shelf space or they may be placed within an eyeshot of each other on an aisle.

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To summarize the above, the purpose or some of the benefits derivable from cross-merchandising is listed below:

  • Better shopping experience resulting in increased customer loyalty.
  • Increased sales resulting in higher Revenue.
  • Better marketing strategy leading to improved brand awareness.

Examples of Cross merchandising

You may not have taken note of this but grocery and retail stores have a way of arranging the store and shelves. It is a calculated arrangement to draw in the shopper to buy as much as they can. When well implemented, this typically yields positive results. 

While some shoppers are single-minded and know what they want to purchase from a store, a larger percentage are more open-minded. Some do not even know exactly what to buy. They just want groceries that’s all. Cross merchandising appeals more to the latter sets of people. By methodically arranging products, it psychologically sends a message to buyers that they “need that too”. 

Examples of such include:

  • Wine openers close to wine bottles
  • Salad condiments and dressings close to salad ingredients
  • Placing tomato sauces near pasta.
  • Birthday cards near cakes
  • Computer accessories with laptops
  • Extension boxes close to electrical gadgets.

The above are common everyday examples of cross-merchandising.  Some are unconventional such as diapers and beer to appeal to the men folk who come to shop for baby things. Depending on the occasion or season, items can be arranged to entice the buyer.

However, when using cross-merchandising, there is a need to be careful. Do not get carried away and overdo things in a way that is off-putting rather than attractive. Avoid pairing too many items or putting items that do not complement each other in any way. 

You should endeavor to map out an effective plan before implementation to avoid running into issues. To this end, you should have the following in mind when planning your cross merchandising

Provide Solutions

A lot of the time, people unknowingly shop for solutions rather than products. Consequently, it is good to have this at the back of your mind when arranging products for cross-merchandising. Instead of putting up a display for sales, arrange it in a way that provides solutions to customer needs. For example, a shopper buying diapers will most likely need baby wipes and other baby accessories. Even when the shopper is not thinking about it, the sight will help them remember the other items that they need.

Make Shopping Convenient

You should endeavor to arrange and display items in a way that makes shopping convenient for your customers. By guiding them to what they need and putting it in and around the same area you would help made them enjoy their experience. They may not know what to buy but you would have helped them save time by simplifying their shopping.

To make your cross-merchandising easier, there are retail solutions to help you out. They can provide you with data as well as photos that can guide you in implementation, store appearance, sales, merchandising and many more.

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When setting up a store for display, it is important to have your customers in mind and provide convenient solutions for them. This helps to give you an edge and improve sales and revenue. For a better experience, you can use retail solutions that are designed to help store owners in this regard.