Cross-Selling

- or -

How do I sell the services of my colleagues?

Dipl.-Geol. MBA Christian Blothe, Head of branch Harburg

Dipl.-Geogr. Dr. Ulrich Mller, Head of sales department

 What is Cross-Selling exactly?

sensu stricto

to use the existing customer relationship to sell

related products/services
sensu lato

to use the existing customer relationship to sell also

non-related products/services
 Potential of Up-Selling is widely exploit
however

Potential of Cross-Selling is often not realized

especially

in case of high-grade services such as engineering service

Potential of Cross-Selling is often not realized
Main reason:
Spectrum of services is non-transparent to customers

source: www.4managers.de
 Potential of Cross-Selling is often not realized

How bad is that?

A study based on evidence from > 500 customers of industrial services (Detroy et al. 2007) shows that

only 30% obtain more than one service category

from one provider
although the vast majority (60-90%) is willing to order other
services from their provider.
 Ergo:

Cross-Selling offers an enormous potential to

increase our proceeds!
 Cross-Selling offers an enormous potential to
increase our proceeds!

Other gains of Cross-Selling are:

Increase of customer loyalty

The more services you obtain from your provider
the harder is it to switch
Extention of customer life cycle
In case a service is obsolete, you are not going to
resign as you obtain other services from your provider
Increase of customer satisfaction
Potentially problematic interfaces are reduced if you receive
related services all from one hand
Reduction of acquisition costs
It's five to ten times cheaper to serve an old client than
to go out and get a new client.
 Ergo:
Several good reasons to increase Cross-Selling

Questions for our HPC-discussion meeting:

1. What are the obstacles/barriers for

Cross-Selling in our company?

2. How can we remove, circumvent or

reduce these barriers?

3. Which actions do we need to take?

Thank you
for your

attention
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