O cross merchandising has already become a key element in the success of POS strategies of many companies, transforming consumers' shopping experience and bringing great benefits to the brand.
However, if you are still part of the group that has never heard of cross merchandising, you don't need to worry, as this content is made especially to help you stay on top of the subject!
We will explain to you how this trade marketing tool works, talk about how it can boost your sales, as well as provide incredible tips on how to put this plan into practice. Interested? So keep reading to find out more!
What is cross merchandising?
If we start from a translation of the term “cross merchandising”, we arrive at cross-promotion or marketing of products. In practice, it means placing items from different categories side by side on the shelves as a way of increasing sales of those that have a smaller output.
To make it easier to understand, let's give an example of how this dynamic works: imagine that you are a manufacturer of crystal glasses and, to attract the buyer's attention, you decide to position them in the wine and sparkling wine aisle.
In this scenario, wines and sparkling wines fall into the “destination” category and glasses into “convenience”, that is, within the purchasing journey, drinks are the main objective, but the customer may feel encouraged to also take glasses even if they are not part of the initial purchase intention.
Why is this strategy so important?
For companies that do not sell products classified as essential or essential, increasing sales volume can be a major challenge. In these cases, cross merchandising gains even greater importance.
When used well, tactics to boost sales at the POS not only have the potential to increase the volume of profits, but can also bring a series of other benefits, such as:
- Save customers time by centralizing complementary products in a single location;
- Awaken new needs, such as associating the consumption of sweets with coffee, or even avocados with snacks reminiscent of Mexican food;
- Present new merchandise and thus win new consumers for a given brand.
The secret is to evaluate which products can be associated with yours in an interesting way and discover which tools are best suited to your business profile. And to help you with this mission, in the following topic we will talk about the types of cross merchandising available on the market. Check out!
What are the main types of cross merchandising?
Another advantage of investing in a cross merchandising strategy is its wide range of possibilities. Discover some of the main ones:
- Live marketing actions, with tasting of complementary products, such as guava and cheese, juice with toast, among others;
- Thematic merchandising, with the assembly of displays and tables with items related to a commemorative date (Christmas, June festival, etc.) or specific themes;
- Encouragement of impulse purchases, which generally occurs with the distribution of products from different categories at cashiers in markets and convenience stores;
- Display of the best-selling products on displays or on shelves at the entrance of the establishment;
- Shares of a specific brand, with gondolas or personalized refrigerators with different products sold by the company.
How to apply this strategy in your company?
And now that you know what cross merchandising is, you know the advantages and some of the tactics for applying this tool, let's give you some tips on how your company can also adhere to this point of sale strategy.
1 – Know your target audience well
In addition to knowing the consumer profile of your product, when developing a cross merchandising action it is also very important to take into account the target audience of both the establishment and the brand with which you intend to associate your merchandise.
After all, it is precisely the intersection of these factors that will make your tactic a success or not. Therefore, a good tactic for establishing ideal combinations is to observe who the people who frequent the store are and their purchasing habits to create actions that can effectively attract attention.
2 - Bet on creativity to combine products
Traditional combinations, such as cheese and wine or salad dressings and vegetables, are certainly welcomed by different types of audiences, but avoiding the obvious and thinking about creative product associations can surprise consumers in a very positive way.
Think about different dates to carry out thematic cross merchandising, monitor customer behavior within the supermarket, carry out research and don't be afraid to carry out tests to evaluate what works best in each case.
3 - But don't forget to pay attention to the pricing strategy
The price of the product is another factor that cannot go unnoticed in a cross merchandising action. This is because a very large difference between the target item and the convenience item can end up alienating the consumer or causing them to only take what they really need at the moment.
On the other hand, an excess of promotions at the point of sale can also be a negative aspect, as this “rain of offers” can end up confusing the public and, consequently, hindering sales.
4 - Invest in attractive POS pieces
What's the point of knowing your audience in depth, thinking of incredible product combinations and competitive prices if your initiative doesn't attract attention among so many other items displayed on the shelves?
That's why thinking about how merchandise will be displayed is a point that deserves a special chapter in your trade marketing planning!
Here it is worth investing in the potential of sales promoters, in the good arrangement of shelves and in the use of tables, benches, mannequins and special decorations within the store to guarantee the deserved prominence for your action.
5 - Monitor the performance of your initiative
The best way to know if your cross merchandising strategy is actually working through careful monitoring!
At this stage it is essential to check whether there was growth in sales of your product, whether the chosen location helped to arouse interest and also carry out opinion surveys with customers to find out whether they found what they were looking for in the store, whether they were influenced to purchase any complementary items and What did you think of the prices and promotions?
From the data collected, it is possible to carry out complete reports to analyze the success of the strategy and, based on the results, think about future actions that will boost your sales in a very effective way.
As you can see, cross merchandising is a tactic that has a long life in the market and that, with the right tools, can also expand to the online environment, expanding the possibilities of combining products to serve consumers in an even better way. more personalized and attractive.
And if you liked this article about cross merchandising and are interested in knowing more about the world of trade marketing and the various technologies that promise to transform companies' relationships with their audiences, continue on our blog There's always interesting content here to keep you well-informed.
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