Maximize Your Profits with These 6 Brilliant Cross-Sell Plays

In this episode of the Perpetual Traffic podcast, hosts Ralph Burns and Lauren Petrullo delve into the concept of New Average Order Value (nAOV) as a key marketing performance indicator. They differentiate nAOV from overall Average Order Value and emphasize its importance in determining profitability on initial customer sales. They discuss strategies to enhance nAOV through cross-selling and upselling, using examples from McDonald's, Disney, Amazon, and beauty industry clients. They outline six steps for effective cross-selling: choosing complementary products, limiting options, pricing appropriately (typically 40-50% less than the main product), timing the offer correctly (after the primary purchase commitment), avoiding pushy sales tactics, and continuously testing and refining the approach. The hosts stress that a well-executed cross-selling strategy not only increases revenue and profit margins but also enhances customer experience and retention, ultimately enabling businesses to pay more to acquire new customers.