What strategy involves selling additional products alongside an initial purchase?

Cross-selling is a strategy that focuses on encouraging customers to purchase additional products that complement or enhance their initial purchase. This technique leverages existing customer interest and shopping behavior, providing them with related options that could meet their needs more comprehensively. For example, if a customer buys a smartphone, the retailer might suggest accessories such as cases, screen protectors, or headphones. This not only increases the average transaction value but also improves customer satisfaction by offering them products that enhance their original purchase.

In contrast, competitive pricing refers to adjusting prices based on the pricing strategies of competitors, which does not inherently involve the suggestion of extra purchases. Bundling is a different approach where multiple products are sold together at a lower price than if they were bought separately, but it doesn’t specifically mean selling additional products independently alongside the main purchase. Market penetration aims to increase sales within existing markets, which may not necessarily involve direct customer interaction to recommend additional items. Each of these strategies serves distinct goals within retail, with cross-selling particularly focused on increasing the volume of products sold during an individual transaction.