The Power of B2B Cross-Selling: More than Selling More

It seems like the majority of my conversations with sales leaders now include the topic of cross-selling. Offering multiple products or services to existing customers is a common sense way for B2B companies to boost their revenue--but it is easier said than done. It's more than pushing product. In today's climate, many customers are looking to reduce the number of vendor relationships--seeking partners who can support them in achieving their objectives more completely. Cross-selling can play a key role to help both you and your customer.

HubSpot research found that, on average, cross-selling accounts for 21% of organizational revenues. Despite this, repeated studies show that 75% of cross-selling initiatives in B2B sectors fall short (Homburg et al., 2020; Coyles and Gokey 2002). 

So what sets successful cross-sellers apart from those who struggle? The key lies in having a deep understanding of your customers and their ever-changing needs. It goes beyond having a range of products--it is about recognizing how these offerings complement each other to deliver tangible value to your customers. 

As your business evolves and your customer's needs shift, how can you adjust your products and services to keep supporting their development? This is where a strategic approach becomes crucial. Eggenschwiler (2024) conducted a review of existing literature on this subject. That research found that although cross-selling and cross-buying are different concepts, they are often treated interchangeably in practice--focused on the actions taken by the company selling additional products or services to a customer. This leads to confusion and hinders effective implementation by not taking into consideration the behaviors of the customer when it comes to cross-buying. You know why you want to sell more, but do you understand why they would want to buy more? 

A key insight from the study underscores the significance of evaluating the progress made with a customer before determining the offering. This evaluation should be a part of business reviews allowing you to assess where the client stands in their journey with your company and identify opportunities to support their future growth stages. As highlighted by one manager interviewed in the research "It's difficult to leverage selling insights effectively with existing customers when there is ambiguity about their past interactions and future preferences" (Eggenschwiler, 2024).

But just having this data and knowledge is not enough. It also involves having the right team members, processes, and content to take action. Roles like account managers focus on increasing revenue from current clients. But, it's important to balance this specialization with teamwork and sharing knowledge across departments to ensure the best outcomes for clients. 

Ultimately successful B2B involves becoming a trusted partner in the customer's success--understanding their needs in advance and continuously adapting your recommendations to help them achieve their objectives. By adopting a customer-focused approach to cross-selling, B2B enterprises can create a growth engine and stand out in a competitive environment.

So if cross-selling is part of your strategy for growth, ask yourself these questions about your sales organization:

1. How confident are you that your team knows the right next steps to take in an account?
2. What ability does your team have to articulate these next steps from a "cross-buying " perspective (why the customer would want to buy more) rather than a "cross-selling" perspective (why you want to sell more)?
3. What content and tools do you have for strategizing with existing customers on the next steps?
4. How have you standardized the planning of potential cross-sell opportunities identified in an account?
5. How are your business units and departments aligned to share cross-sell opportunities?

References:

• Coyles, S., & Gokey, T. C. (2002). Customer retention is not enough. The McKinsey Quarterly, 2(2), 81-89.
• Eggenschwiler, M. (2024). A systematic literature review on the cluttered cross-selling and cross-buying subfield: A call to action. [Working paper]
• Homburg, C., Böhler, S., & Hohenberg, S. (2020). Organizing for cross-selling: Do it right, or not at all. International Journal of Research in Marketing, 37(1), 56-73.