Effective Cross-Merchandising Tips For Retailers

Cross-merchandising is a marketing technique where the retailer groups different products together to achieve more sales. When a custom notices the display, they may decide to purchase multiple products rather than just one. Unfortunately, far too many retailers overlook the importance of cross-merchandising, relying strictly on dated forms of in-store marketing and promotional displays. If you're struggling to grasp the concept of cross-marketing, keep reading for some effective tips to set you in the right direction.

What Exactly Is Cross-Merchandising?

Some people assume that cross-merchandising is some form of discount given to customers who purchase multiple products, but this isn't the case. It's actually a display marketing technique used in stores where different types of products are grouped together.

One example of cross-merchandising is a mannequin set up in a clothing store that's wearing a full outfit, along with a hat, handbag, jewelry and other accessories. Even if the retailer's primary objective is to sell clothes, they'll still generate some revenue on accessories, which is why they display them on their mannequins.

Another example of cross-merchandising is a luggage store that sells accessories like luggage tags and leather conditioner. Perhaps they'll group these accessories next to their luggage in an effort to encourage customers to buy them. The customer may have visited the store strictly for a new luggage set, but after seeing these accessories nearby, they may purchase them as well.

Cross-Merchandising Tips:

• Group together products that are related in some way. For instance, an electronics retailer might display some popcorn or beverages near their DVDs and Blu-Ray movies.
• Create your product display around a central theme. Cluttering it with unrelated products and no central theme will only reduce its effectiveness as a marketing tool.
• Analyze your sales. After setting up a cross-merchandising display, pay close attention to your sales in the weeks and months to follow. If it's not performing well, don't be afraid to make some changes.
• Think like a customer. Ask yourself: does this display make me want to buy the product? If you answered, redo your product display.

The Bottom Line

When it's done right, cross-merchandising can drive more sales and higher profits. It's a simple marketing technique that nearly all of the nation's top retailers use.