what is cross presentation and why is it important

What Is Cross-Selling?

Learn how cross-selling can help you close more deals with the customers you’ve already won.

Salesforce Staff

Share article, cross-selling involves selling related, supplementary products or services based on the customer’s interest in, or purchase of, one of your company’s products..

Its a great way of increasing customer loyalty and deeping customer relationships which in turn can improve customer lifetime value and retention. 

This makes cross-selling an excellent growth strategy.

Achieve cross-selling excellence with a CRM: Learn more in the Complete CRM Handbook

What we will cover:

Cross-Selling vs. Upselling Examples of Cross-Selling Benefits of Cross-Selling Potential Drawbacks of Cross-Selling Steps for Cross-Selling to Customers Cross-Selling techniques Cross-Selling: Key facts and FAQs

Cross-Selling vs. Upselling 

Cross-selling and upselling are two distinct practices that involve approaching existing customers and convincing them to purchase additional products or services. In the case of upselling, your goal is to sell a more expensive, more advanced product to the customer than they had planned by conveying its added benefits.

One example of upselling would be a cable television provider selling a premium plan with a more extensive selection of channels to a current subscriber of a basic package. Upselling may also entail approaching the customer at the point of sale for one product, offering a more advanced alternative.

In both upselling and cross-selling, companies must effectively utilise their existing and potential customer base to increase sales by offering appropriate additional products to the right customers. However, cross-selling never involves encouraging customers to replace their current choices with more expensive ones.

LEARN MORE ABOUT UPSELLING

Examples of Cross-Selling

Some examples of cross-selling include an electronics retailer offering a deal on a computer case, mouse, and screen cleaning wipes to a customer who purchases a new laptop, or an insurance provider offering renters’ insurance to its car policyholders.

Get fresh insights from 7,700 sales professionals.

Dig into our latest report to learn how sales professionals are driving productivity and efficiency.

Benefits of cross-selling

The main benefits of cross-selling include increased sales revenue,  improve customer satisfaction  and in B2B businesses, increased Customer Lifetime Value (CLV) through deeper integration in a customer’s business.

When it works, cross-selling is great for both you and for your customers. The ideal situation is one where your existing customer is not aware of a product or service that would improve their customer experience. You find them on their  customer journey  at the ideal point, via their preferred contact method, and they react positively and go on to purchase the recommended product. Your sales increase, and their customer satisfaction increases because the product better fits their needs.

Potential Drawbacks of Cross-Selling

When it doesn’t work, cross-selling can be annoying for customers and ineffective at generating sales. This is almost always down to a lack of planning or appropriate data. If you recommend a product that makes no sense – for instance, promoting winter clothing to a customer who just bought a bathing suit – you may drive that customer away. If you approach a customer by phone who would typically place orders via email, you may not be able to make contact.

And strangely enough, cross-selling is not  always  a great idea, even when it works. According to a   Harvard Business Review  study  published in 2012, certain types of problem customers can actually make cross-selling a profit-losing strategy. According to Denish Shah and V. Kumar, some customer types can put stress on your customer service staff, whether by returning or cancelling a large number of goods and services or withholding spending in other areas to spend on your cross-selling promotions.

It’s crucial to  analyse customer data and metrics  related to your cross-selling marketing campaigns to evaluate which efforts produce cross-sales without reducing overall profitability, and which customers should be left out of cross-selling or approached with different methods, such as upselling. In general, cross-selling too many options to too many customers can be a losing endeavour if you don’t have a well thought out strategy in place.

Steps for Cross-Selling to Customers

Identify related products and services suitable for cross-selling, identify suitable customers ready for a cross-selling, develop a cross-selling campaign and customer journey.

Before you can convince your customers to respond to cross-selling efforts, you need to identify which products and services go together: What do customers typically buy as add-ons to their purchases? What products are usually purchased together? Or even, what products have been successful in previous cross-selling campaigns? Solid data makes all the difference.

Say your company is a fitness centre: Do some of the members often buy drinks at your front desk? They might be interested in a supplementary beverage program for a flat monthly fee. Or maybe your online electronics shop has wireless headphones that could be marketed to recent smartphone buyers – these customers may even have browsed for headphones, but left them in their shopping carts without purchasing.

The next step in creating effective cross-sellingcampaigns is targeting the right audience. Identifying cross-sellcustomers starts with the data you gather from your customers at every stage of their customer journey.

You can use information about in-person and digital communication your company has had with customers, their purchasing and browsing histories, whether they’ve repeatedly returned merchandise or cancelled services. All of this information can help you identify the best candidates for a cross-selling campaign. You can also target “look-a-likes” who demonstrate similar behaviours or characteristics to these customers.

Organising the information you receive through customer purchase histories and interactions is infinitely more effective when you use sales and marketing software with effective tools for  CRM , and even better when coupled with  AI-assisted sales analytics . Artificial Intelligence tools can automatically contact customers who display interest in certain products without the need for your staff to set up a new campaign each time. This frees up your marketing and sales staff for the more personal interactions that machines can’t perform.

Once you’ve identified customers who are ideal candidates for cross-selling, you’ve got to convert them. You then need to develop a strategy for presenting the potential cross-sales. If you have an online store, cross-selling through ads that appear during the checkout process can be effective, as can  email campaigns targeting  those who recently purchased a product. For higher cross-selling conversion rates, test out different approaches to making contact with customers, and adjust your approach based on analytics-based results.

Cross-selling techniques 

Now that you’ve identified the customers you’d like to approach and the products you’d like to cross-sell, here’s some advice about techniques and some cross-selling tips to keep in mind:

• Offer the customer additional products and services that will genuinely provide them with added value: Think about cross-sales from your a customer’s point of view, not just in terms of how much revenue you think you can generate. If you’re  utilising a CRM , fewer well-placed offers are far more valuable than a greater range of offers that don’t benefit your customer relationships.
• Find your customers at effective touch points on their customer journey: If they’ve used your website to place orders, email or  targeted ads  might be the best method for cross-selling. If they’re more likely to visit a store in person, a salesperson is more likely to cross-sell additional products and services to them in person or on the phone.
• Use your existing inbound marketing campaigns to promote supplementary products and services: If you have content targeting an audience that buys luxury cars, for instance, you can include ads for car accessories on your blog posts and product descriptions to encourage cross-sales.
• Make effective use of the data your customers provide: The new generation of consumers expects personalised service, even when it comes to upselling and cross-selling, and the tools for providing that through solid data are out there.
• Encourage cross-sales by creating spaces for interaction between customers: An online community for skateboard buyers may be as effective at encouraging sales of additional wheels and other parts as your direct marketing efforts.
• Make use of  social selling  techniques: For example, social media  influencers  are a valuable tool for reaching the widest possible audience in the current, predominantly digital sales environment. Offer incentives for influencers who already promote your products to mention supplementary products on their social media channels.

When handled with care, Cross-selling can be an effective way to increase sales revenue for your company. While you should take advantage of potential cross-sales, you need tools for gathering and analysing data to use cross-selling in a way that benefits your business and your customers. Managing your marketing and sales data intelligently gives you a competitive edge on your cross-selling efforts, thanks to sales AI. Find out more about Salesforce’s cloud software and Einstein Analytics with a  deep dive into AI.

That’s a lot of info!

Here’s what you should take away from this article:.

• What is cross-selling?  Cross-selling is the process of offering a customer products that are compatible with the ones they’re purchasing.
• What’s the difference between cross-selling and upselling?  Upselling is the practice of selling a more expensive product to a customer, while cross-selling is offering supplementary products.
• What’s an example of cross-selling?  An example of cross-selling would be offering a deal on a computer case to a customer who purchases a laptop.
• What are the benefits of cross-selling?  Benefits of cross-selling include increased sales revenue, improved customer satisfaction and increased Customer Lifetime Value (CLV).
• Are there drawbacks to cross-selling?  When it doesn’t work, cross-selling can be annoying and ineffective. This is usually down to offering incompatible or inappropriate products.
• What are some steps for cross-selling to customers?  The most important part of any cross-selling strategy is identifying products or services that are compatible with one another. After that, it’s identifying which customers are most likely to benefit.
• What are some cross-selling techniques?  When cross-selling, it’s important to always try to add value to the customer experience. You’ll also want to make sure that you’re offering the appropriate products at the appropriate touchpoints.

Cross-selling isn’t limited to burgers and software. It can be valuable in any industry, with any product. 

Case in point: As a sales consultant, my clients sometimes need more than a basic training course or hour-long coaching session. Cross-selling books, additional training, or sales resources is almost always an option — and to make sure the door is open for those cross-sells, I continuously deliver valuable articles or insights to build trust. Then, when an opportunity presents itself, I go for the cross-sell. 

This happened recently, shortly after the launch of my third book on sales. I had a few clients at the time who showed some interest in additional training for their sales teams, but I didn’t know exactly what they were looking for. So, I asked open-ended questions like, “What industry-specific insights or examples would be helpful?” and “What’s the best learning modality for your team?” 

Eventually, I uncovered a good fit: a few clients with smaller sales teams that wanted resources sellers could use on their own time. I confidently proposed a cross-sell in our regular check-in conversations, offering bulk copies of my book at a discounted rate. Happily, they accepted, and many have noted since that the book has made their training more impactful.

Frequently asked questions

What is cross selling and why is it important.

Cross-selling involves selling customers related items when they are making a purchase. It’s important not only because it boosts revenue, but also because it increases customer satisfaction, builds engagement, and helps to create solid and lasting customer relationships

Does cross selling work?

Yes. Cross-selling provides value for both businesses and customers, leading to increased revenue, increased customer satisfaction and better long-term relationships. This is assuming that cross-selling is done correctly – as the products or services being cross-sold must be appropriate and fit the needs of the customer.

What is an example of cross selling?

Cross-selling involves offering additional products that complement a purchase. For example, if a customer is buying a new bike, the retailer might offer them a discount on a tyre pump or a bike light. An electronics retailer might offer a case, an external hard drive and a mouse with the purchase of a new laptop.

Just For You

7 Sales Tools You Should Be Using Right Now

5 Tips To Create the Most Accurate Sales Forecasts of Your Career

Explore related content by topic

• Salesblazer
• Customer Experience
• Customer Success
• Sales Strategy
• Sales Representative

The 360 Blog from Salesforce teaches readers how to improve work outcomes and professional relationships. Our content explores the mindset shifts, organisational hurdles, and people behind business evolution. We also cover the tactics, ethics, products, and thought leadership that make growth a ... Read More meaningful and positive experience.

Want Trailblazer tips and thought leadership straight to your inbox?

The Complete Guide to Channel Sales

Sales Analysis: The Complete Guide

What Is a Sales Cycle and How Do You Optimise It for Consistent Sales?

9 Sales KPIs Every Sales Team Should Be Tracking

What Is Sales Enablement? A Complete Guide

Make Your Sales Kickoff the Party of the Year

What Is a Go-to-Market Strategy? (And Why You Need It to Beat Your Competition)

What Is a Sales Quota? Types, Examples & How To Set Goals

New to Salesforce?

• Why Salesforce
• What is CRM
• Explore All Products
• Product Pricing

About Salesforce

• Security and Performance
• Salesforce.org
• Best CRM Software
• Sustainability
• Give us your Feedback

Popular Links

• New Release Features
• Salesforce Mobile App
• Business App Store
• CRM Software
• Salesforce Plus
• Salesforce for Startups
• América Latina (Español)
• Brasil (Português)
• Canada (English)
• Canada (Français)
• United States (English)

Europe, Middle East, and Africa

• España (Español)
• Deutschland (Deutsch)
• France (Français)
• Italia (Italiano)
• Nederland (Nederlands)
• Sverige (Svenska)
• United Kingdom (English)
• All other countries (English)

Asia Pacific

• Australia (English)
• India (English)
• Malaysia (English)
• ประเทศไทย (ไทย)

© Copyright 2024 Salesforce, Inc. All rights reserved . Various trademarks held by their respective owners. Salesforce.com Singapore Pte Ltd. 5 Temasek Boulevard #13-01 Suntec Tower 5 Singapore 038985

• CRM Software and Systems /

What Is CRM? A Complete Guide to Customer Relationship Management

• What is Customer Relationship Management?

How CRM Works

• Why CRM is Important for Your Business

Customer Relationship Management Technology

Customer relationship management (CRM), is a set of practices aiming to deepen customer engagement . By applying CRM principles effectively, you can expand your sales pipeline, offer great customer service, and boost loyalty.

But what do CRM systems actually in practice? And how can businesses use top CRM software platforms to close more deals?

In this article, we break these questions down with practical examples. Read on for a detailed guide on CRM systems, as well as their benefits and practices .

What Is Customer Relationship Management (CRM)?

Customer relationship management—CRM for short—includes the processes, data, and technologies that help businesses engage with customer s. Potential buyers, such as qualified leads and target prospects, usually fall under the CRM umbrella, too.

CRM strategies aim to enhance the entire customer lifecycle , from awareness to purchasing and customer support. You can measure their effectiveness using key performance indicators (KPIs) such as customer satisfaction, retention, and sales conversion rates.

CRM software, often referred to simply as “CRM,” is a key component of CRM strategies. Using features like pipeline management and task automation , your marketing and sales teams can engage customers in more timely and personalized ways.

Here’s a snapshot of how CRM works across business departments.

Sales Teams: Maximize the Number and Value of Deals

Sales teams use CRM best practices to streamline sales processes and close more deals. As an illustration, a common B2B sales process typically involves qualifying and nurturing leads , building rapport, pitching, negotiating, closing, and up-selling or cross-selling.

Throughout this process—also known as pipeline stages—sales reps perform CRM tasks like:

• Researching each prospect (for a B2B) and customer segment (for a B2C) to personalize communications, pitches, and product offers.
• Neatly tracking lead communications to understand individual needs, objections, and feedback. Analyzing data including deal stage and value, plus lead demographics (B2C) and firmographics (B2B) to prioritize opportunities and identify winning strategies

Marketing Teams: Increase Awareness and Capture Leads

Both B2B and B2C marketing teams aim to add likely-to-buy leads to the sales funnel , plus raise general awareness of their brands and services.

Here’s how marketing professionals might apply CRM principles.

• Identify and segment a target audience . For instance, segment a B2C 20-to-40-year-old target audience into value, standard, and luxury spending segments.
• Identify and prioritize marketing channels for target segments. For example, research how different segments interact with channels like social media, email, influencer, and outdoor marketing.
• Transfer qualified leads to sales teams. For instance, create lead magnets such as industry reports to capture lead details for sales teams.

Customer Service Teams: Solve Problems Effectively

Here’s how customer service teams use CRM principles to solve problems effectively and increase retention .

• Create scripts and procedures based on common customer questions or problems.
• Track and organize cross-channel customer inquiries and complaints.
• Escalate customer issues to appropriate agents.
• Collect customer feedback to improve support and products.
• Monitor, analyze, and improve KPIs such as customer satisfaction and ticket resolution rate.

Why CRM Is Important for Your Business

Here are some tangible benefits of managing customer relationships effectively. CRM systems will help you…

Expand Your Sales Pipeline

Well-oiled CRM processes—including prioritizing marketing channels and tracking engagement metrics—help expand your sales pipeline. One study found that effective CRM use can increase conversion rates by 300% .

Here’s an example. Imagine that promoting an events business via online ads isn’t generating enough leads. Researching the target audience—for instance, through 1-to-1 interviews—reveals that target buyers value interpersonal relationships and trusted recommendations. So, strategies like face-to-face networking and incentivized referrals might boost lead numbers.

Close More Deals

Taking a detail-oriented CRM approach helps close more deals. According to a recent study, improved access to customer data helps speed up sales by 8 to 14% .

First, you can personalize B2B pitches and B2C product offers based on leads’ pain points and preferences . Say a business lead responds with a “no budget” objection. You might explain how your solution helps them cut operational costs, thus paying for itself.

Second, accurate pipeline and communication tracking enables you to follow up on proposals and negotiations without a hitch, so no deals fall through.

Provide a More Personalized Customer Experience

65% of customers want businesses to respond to their individual preferences, and around 75% spend more thanks to positive customer experiences. Luckily, CRM best practices help you offer current and prospective customers more personalized experiences.

For example, a B2B account manager can adapt their communication style to client needs and personalities. They might ask questions at the end of agenda items to prompt more introverted clients or invite specialist colleagues to meetings requiring product insight.

Boost Customer Loyalty and Retention

CRM systems can increase retention by up to 27% according to Salesforce, but it’s been shown that just a 5% increase in retention can lead to a 25% profit increase. Customers who feel you understand and promptly resolve their preferences and objections are more likely to re-purchase.

In practice, a B2C email marketer might group customers according to favorite products and automate offer emails based on past purchases . This increases re-purchase likelihood and encourages loyalty.

To 70% of sales professionals surveyed by LinkedIn, CRM technology is “very important” to closing deals. That’s because CRM software lets you easily track and analyze customer data, leading to better sales decisions.

Here’s how CRM platforms improve relationship management. With CRM software, you’ll be able to…

Leverage Cross-Channel Customer Data

The best CRM software collects customer data from different touchpoints, including emails, support tickets, web forms, manual data entry, and social networking platforms. For example, some platforms let you create landing pages and automatically store web form data. Others offer or integrate helpdesk platforms and live chat tools .

It’s easy to search and update customer records, including names, phone numbers, and communication history. You can also create custom data fields to enhance your sales tracking. For instance, a publishing business might create a data field titled “advertiser industry” with options including luxury retail, automotive, and hospitality.

This customer database acts as a single source of truth for your departments . In other words, you avoid the miscommunication risk and data silos inherent to spreadsheets and email threads.

Manage and Prioritize your Sales Pipeline

CRM platforms let you track each deal opportunity across pipeline stages like qualification, proposal, and negotiation. You can usually tailor the stages to your business needs for extra precision. For instance, you might add a “post-purchase nurturing” stage to plan retention efforts.

You then assign stages, estimated deal values and probabilities, and sales reps to specific opportunities. Many platforms let you standardize task lists for each deal stage , such as emailing, calling, and conducting demos, to increase team productivity.

Pipeline management also helps you prioritize and personalize your approach to different accounts. For example, you might invest more time building rapport with qualified, rather than unqualified leads.

Automate Tasks and Communications

CRM tools save you time and money by automating manual tasks. Here’s a sample to-do list you could automate.

• Score leads from 1-100 based on factors such as company size, purchase likelihood, and lead source.
• Assign sales reps to leads based on data including job title and geographical region.
• Progress leads to new pipeline stages based on trigger events like booking a demo.
• Add contacts to customer groups based on factors such as average transaction amounts and most recent transaction dates.

Automating manual tasks frees up time to build deeper customer relationships and collaborate with other departments. As a bonus, task automation also reduces manual error risk like calculation errors.

Some CRMs let you automate customer emails, too. These platforms either have built-in email campaign features or integrate with email marketing software (e.g. Mailchimp) and email clients (e.g. Microsoft Outlook).

You could, for instance, automate tailored emails based on contacts’ company revenue and job titles. This means you send large comms volumes in little time, while the data-driven personalization increases response rates. Some platforms use AI to scan emails and proposals , along with engagement metrics, to suggest top-performing sales content.

Analyze Customer Insights and Forecast Revenues

CRM reports help you better understand your contacts by grouping them according to characteristics including:

• Demographics such as age and geographical location
• Firmographics like job title, tenure, and company revenue
• Pipeline factors like stage, sales rep, and deal value

Once customers are segmented, you can analyze purchasing behaviors. For example, you might spot that senior stakeholders progress through the pipeline more quickly than middle-management ones.

On top of reporting, CRMs offer admin dashboards that visualize your sales activity through charts. You might see, for instance, your deal closing rate and top-performing sales reps.

This bird’s eye view informs strategic decisions , such as which opportunities to prioritize and how to train underperforming team members.

Finally, top-notch CRMs also forecast revenue based on past deal data and current pipeline opportunities. Some offer AI assistants, usually on higher-tiered plans, that analyze past sales workflows, including lead characteristics and communication timing, to recommend revenue-maximizing next steps.

Next Steps 

CRM includes the strategies, processes, and tools you use to nurture relationships with current and prospective clients. This includes segmenting your audience and tailoring communications to help you better understand customer needs and increase conversion rates.

To this end, CRM software is a key tool, enabling you to shorten sales cycles and close more deals. Using tools like pipeline tracking, task automation, and in-depth reporting, you avoid deals falling through and increase sales rep productivity. 

Learn more with our guide on CRM software benefits for small businesses .

Ready to find the right CRM platform for your business? Use our free CRM software comparison tool . 

Meanwhile, analytical CRMs use your business data, including ecommerce, cross-channel marketing, and accounting data to produce 360-degree customer profiles and sales forecasts.

Finally, collaborative CRMs enable teams to share information, and track customer journeys holistically across marketing, sales, and customer support channels.

Written by:

Customer Data Platform

All user information is systematically collected in a unified customer data platform

Omnichannel Marketing

Distributing messages across various communication channels: email, SMS, push notifications, messengers

Loyalty programs

Promo codes, bonuses, and points for building long-term customer relationships

HTML Email Builder

You can create and edit any HTML template, as well as save your own custom blocks

Personalized mailings

Personalized distribution of messages to clients through communication channels

A/B/n Testing

Conducting experiments and optimizing marketing strategies

Real-time analytics

Tracking the effectiveness of marketing campaigns to make informed decisions

Integration and WebHooks

Connecting external systems to the platform and synchronizing data with company databases

Forms and Surveys

Creating questionnaires, surveys, and feedback forms of any level of complexity

Messenger Communication

The ability to communicate with your clients anytime and anywhere

Pop-Up Windows

Increasing user awareness of your company's offers

Average Order Value: What It Is, How to Calculate It, and Why It’s Important

The average odrer value is a useful metric for evaluating the effectiveness of a marketing strategy. It is calculated by dividing the total revenue from all purchases by the number of purchases.

Let’s take a closer look at what an average order value is. Suppose you run a bookstore and your monthly income is 1,400,000 rubles. Over the month, customers made 4,000 book purchases. In this case, you can calculate the average order value by dividing 1,400,000 by 4,000. Here, the average order value is 350 rubles.

Analyzing this metric allows you to assess the business's performance, the effectiveness of advertising initiatives, and the efforts of employees.

Why it’s important to track the average order value

Tracking the average amount customers spend is important for several compelling reasons:

It helps you understand if your brand image aligns with what customers are willing to pay. If you position yourself as a high-end company but find that customers spend less than expected, it indicates a mismatch between brand perception and customer expectations. This may require a strategy review.

You can gauge the financial capabilities of your target customers . This is necessary for making informed pricing decisions. Analyzing the average amount customers are willing to pay provides valuable data for adjusting your strategy.

You can study spending patterns based on seasons. Understanding how customer spending changes throughout the year helps you plan promotions and sales better. You can choose the best time intervals for introducing discounts to maximize sales and avoid periods of decline .

You can assess how effectively your retail locations are performing. This is another crucial reason to monitor how much money customers spend. Comparing average order values across different locations helps identify stores that earn the most and understand why they perform well. This information can be used to make improvements in underperforming locations.

You can evaluate how well your advertising ideas are working. Without this, you won't reap the benefits. If special offers or loyalty programs don't make people spend more, it means they don't suit your target audience or business. If certain types of advertising don't yield the desired results, try something different.

How to calculate the average order value

Average order value formula: Average Order Value = Revenue / Number of Sales

It seems simple, but there are some details to consider:

There's no point in calculating the average order value just once. Try to monitor this metric monthly, and if you have many customers, then weekly. Only then can you accurately adjust your strategy.

For stores with a diverse assortment, it's recommended to calculate the average order value by categories. Take, for example, a pet store that offers food, toys, and accessories.

Suppose you analyzed the average order value and found that customers mainly buy food, but the average order value in this category is the lowest. To improve this metric, consider expanding the mid-range price category of pet foods or offer a cashback bonus for such purchases.

• Analyzing the average order value separately for mass-market products and premium-class products is valuable for understanding audience behavior. This is important for small stores where even one purchase of an expensive item can affect the average order value.

How to increase the average order value

Here are eleven of the most common strategies for increasing the average order value:

Apply the technique of upselling. Here, you encourage customers to choose higher-priced items within the same product range, such as newer model smartphones. This is typically used by online stores, where more expensive products are shown in recommendations.

Use cross-selling. Here, you offer customers additional products. For example, if you sell clothes, you can suggest some other items that fit with the chosen one. This can be done automatically when adding items to the cart or at the checkout.

Stock new products. Most people want to try something new—different flavors, colors, features. This motivates people to spend more.

Offer bundles. This method is often used in cosmetics stores. For example, buying one jar of cream might cost 500 rubles, but if you additionally take a toner and micellar water, the total cost is reduced.

Try offering different payment options , such as installments, card payments, or through an app.

Optimize merchandising strategies. Arrange products so that their placement makes sense. Monitor the work of employees who display the products. If sales at a certain point are lower than at others, it might be necessary to replace the merchandisers.

Offer loyalty programs , for example, if customers earn points for purchases, this motivates them to spend and come back to you again.

Train your staff. Educate your salespeople and consultants on upselling and cross-selling strategies. Try to motivate employees with bonuses and incentives.

Try promotions. The most obvious technique here is to sell five items for the price of four. Even if a customer initially wanted to buy only three units, they are likely to take advantage of the deal and purchase four to save money.

• Offer gifts for orders above a certain amount. For example, when ordering food, you can offer free delivery or a complimentary dish. This technique is often used to increase the average order value in restaurants.

• And the last option is to raise prices. However, you risk losing customers, so proceed with caution, especially if you have high competition.

How cross-selling works

Cross-selling involves offering additional products or services to customers who have already made a choice and are ready to make a purchase. This increases the average ticket size, which boosts the revenue of the store.

The process here is much simpler than traditional sales because customers are more inclined to buy something extra from the place where they have already made the primary purchase. Your task is to simplify the customers' lives. For example, if you sell burgers, offer them a soda or fries. People will want to buy something additional precisely because it is useful to them.

Effective cross-selling requires a systematic approach rather than one-time efforts.

Analyzing statistics, such as online cash register data, reveals patterns of peak and low activity periods. For a successful strategy, it is recommended to:

Study the average order value over several months to identify patterns, such as an increase in the check size from six to nine in the evening.

Investigate the reasons for increased sales during specific periods. For example, if an event or holiday is regularly held nearby.

Set a clear and measurable goal , avoiding abstract tasks like "I want to increase sales," and calculate the necessary growth in the average ticket.

Add additional products to the menu , tailoring offers to customers' preferences. For example, if an event for elementary school children is held nearby, add sweets to the menu.

To implement cross-selling, follow these steps:

Identify frequently purchased products or services. Selling something in addition to popular items will be the most profitable.

Create sets for at least the top 10 products or services, focusing on mutually complementary elements. Prepare cheat sheets for sellers so they do not get confused if you have a large assortment.

Use marketing techniques , such as asking customers about their preferences rather than just pushing additional purchases.

Implement a motivational system : offer bonuses to sellers for successful cross-selling results. If an employee meets the plan, reward them with a bonus or additional days off.

Analyzing the success of cross-selling is recommended to be done monthly or quarterly. Pay attention to key metrics:

Average order value per seller. This metric indicates individual efficiency. This way, you will know who is motivated and who is not delivering results.

Timing. This will help you identify patterns and compare data with previous periods.

The average order value (AOV), or average ticket, is a key indicator showing the average amount customers spend at a retail point. It is calculated by dividing the total revenue by the number of orders.

The average ticket per customer serves as an important tool for assessing business efficiency and employee performance. Moreover, it plays a crucial role in identifying seasonal sales trends.

Most brands strive to increase the average ticket size, as this raises revenue without attracting new customers. To achieve this goal, businesses use various strategies, such as loyalty programs to retain customers, cross-selling, upselling, and staff training. Additionally, installment payments are used to encourage larger purchases and increase the overall AOV.

By continuing to use our site, you consent to the processing of cookies that ensure the proper functioning of the site.  

What is Memorial Day? The true meaning of why we celebrate the federal holiday

For many Americans, Memorial Day is more than a long weekend and an unofficial start to the summer season. The real meaning of the holiday is meant to honor all U.S. soldiers who have died serving their country.

Originally called Decoration Day, Memorial Day's history goes back to the Civil War. It was was declared a national holiday by Congress in 1971, according to the U.S. Department of Veterans' Affairs.

Although Veterans Day in November also honors military service members, Memorial Day differs by honoring all military members who have died while serving in U.S. forces in any current or previous wars.

The late-May holiday has also evolved into an opportunity for Americans to head to the beach or lake , travel to see friends and family , or even catch a Memorial Day parade .

Here's what to know about the history and the reason behind why we observe Memorial Day.

Memorial Day weather: Severe storms could hamper your travel, outdoor plans for Memorial Day weekend

When is Memorial Day?

One of 11 federal holidays recognized in the U.S., Memorial Day is always observed on the last Monday of May. This year, the holiday falls on Monday, May 27.

Why do we celebrate Memorial Day?  

The origins of the holiday can be traced back to local observances for soldiers with neglected gravesites during the Civil War.

The first observance of what would become Memorial Day, some historians think, took place in Charleston, South Carolina at the site of a horse racing track that Confederates had turned into a prison holding Union prisoners. Blacks in the city organized a burial of deceased Union prisoners and built a fence around the site, Yale historian David Blight wrote in  The New York Times  in 2011.

Then on May 1, 1865, they held an event there including a parade – Blacks who fought in the Civil War participated – spiritual readings and songs, and picnicking. A commemorative marker was erected there in 2010.

One of the first Decoration Days was held in Columbus, Mississippi, on April 25, 1866 by women who decorated graves of Confederate soldiers who perished in the battle at Shiloh with flowers. On May 5, 1868, three years after the end of the Civil War, the tradition of placing flowers on veterans’ graves was continued by the establishment of Decoration Day by an organization of Union veterans, the Grand Army of the Republic. 

General Ulysses S. Grant presided over the first large observance, a crowd of about 5,000 people, at Arlington National Cemetery in Virginia on May 30, 1873.

This tradition continues to thrive in cemeteries of all sizes across the country. 

Until World War I, Civil War soldiers were solely honored on this holiday. Now, all Americans who’ve served are observed. 

At least 25 places in the North and the South claim to be the birthplace of Memorial Day. Some states that claim ownership of the origins include Illinois, Georgia, Virginia, and Pennsylvania, according to Veterans Affairs.

Despite conflicting claims, the U.S. Congress and President Lyndon Johnson declared Waterloo, New York, as the “birthplace” of Memorial Day on May 30, 1966, after Governor Nelson Rockefeller's declaration that same year. The New York community formally honored local veterans May 5, 1866 by closing businesses and lowering flags at half-staff. 

Why is Memorial Day in May? 

The day that we celebrate Memorial Day is believed to be influenced by Illinois U.S. Representative John A. Logan, who was elected to the U.S. House of Representatives as a Democrat in November 1858, and served as an officer during the Mexican War.

It is said that Logan, a staunch defender of the Union, believed Memorial Day should occur when flowers are in full bloom across the country, according to the  National Museum of the U.S. Army.

Congress passed an act making May 30 a holiday in the District of Columbia in 1888,  according to the U.S. Congressional Research Service.

In 2000, the National Moment of Remembrance Act – which created the White House Commission on the National Moment of Remembrance and encourages all to pause at 3 p.m. local time on Memorial Day for a minute of silence – was signed into law by Congress and the President.

What is the difference between Memorial Day and Veterans Day?

Memorial Day and Veterans Day both honor the sacrifices made by U.S. veterans, but the holidays serve different purposes.

Veterans Day, originally called “Armistice Day,” is a younger holiday established in 1926 as a way to commemorate all those who had served in the U.S. armed forces during World War I.

Memorial Day honors all those who have died.

Select the Gcore Platform

• Edge Delivery (CDN)
• DNS with failover
• Virtual Machines
• Cloud Load Balancers
• Managed Kubernetes
• AI Infrastructure
• Edge Security (DDOS+WAF)
• Object Storage
• ImageStack (Optimize and Resize)
• Edge Compute (Coming soon)
• VPS Hosting
• Dedicated Servers

What Is the OSI Model? | How Does It Work?

The Open Systems Interconnection (OSI) model is the foundational framework for network communication. It provides a common language across its seven layers, helping businesses develop and maintain compatible network systems. This article explains the OSI model and highlights its importance for IT professionals and businesses.

• What Is the OSI Model?

The Open Systems Interconnection (OSI) model is a conceptual framework that allows different systems and devices to connect and communicate, a process known as network communication. This involves devices like computers and phones exchanging data using shared connections and agreed-upon rules. By adhering to the OSI standards, devices and software from various manufacturers can communicate smoothly.

The OSI model divides network communication into seven layers, each with a specific role. This separation ensures that changes in one layer, such as upgrading a routing protocol, do not affect the other layers.

How the OSI Model Works

When data is sent, say when someone starts a video livestream on their smartphone, that data passes through all seven OSI layers starting at layer 7. Each layer adds information and instructions through encapsulation, similar to putting a letter in an envelope, then placing that envelope in a larger envelope, and so on. The encapsulated data moves through network devices, which read the instructions added by each layer to forward the data correctly.

At the receiving end—in our case, when the video livestream arrives at the server—the data passes back through the seven layers in reverse order. Each layer removes the information added by its counterpart at the sender’s end, a process called de-encapsulation. This is like removing each envelope one by one until you get to the original letter. This ensures the receiver interprets the data as intended.

• Unraveling the Seven Layers of the OSI Model

The OSI model breaks down data transmission into manageable tasks. Here’s an overview of each layer.

Physical Layer (L1)

L1 handles the physical connection and transmission of raw data bits over a medium, such as cables or wireless signals. It includes hardware like cables, switches, and network interface cards.

L1 functions include:

• Converting digital data into physical signals for copper cables or light pulses for fiber optics.
• Managing the medium for data transfer , such as copper wires, fiber-optic cables, or radio waves. For example, fiber-optic cables are suitable for high-speed data transfer over long distances, while copper wires are often used for shorter distances within a building.
• Defining connectors and interfaces like Ethernet cables or Wi-Fi adapters.
• Determining the bit rate , which affects data transmission speed.
• Setting limits for data travel before boosting or regeneration to optimize network reach and reliability.
• Defining how data is sent between devices —simplex (one-way), half-duplex (two-way but not simultaneously), or full-duplex (two-way simultaneously)—to ensure seamless communication based on the connection type.

Data Link Layer (L2)

L2 handles node-to-node data transfer, dividing bits received from L1 into packets or frames, a structured unit of data. Framing helps devices recognize the start and end of each packet, ensuring correct segmentation for transmission.

L2 is also responsible for:

• Managing Media Access Control ( MAC) addresses , unique identifiers for devices on a local network. Switches direct the frame to the correct destination, minimizing congestion and enhancing performance.
• Promoting flow control and access control , ensuring efficient data transfer free of collisions and making sure the receiver isn’t overwhelmed.

Network Layer (L3)

L3 is responsible for routing data packets across networks.

• Algorithms are used to find the most efficient path.
• IP addresses are assigned to devices , ensuring data packets reach the correct location. Large IP address spaces are divided into smaller subnets.
• As data packets move , L3 examines each packet’s destination IP address and selects the next hop (network device) en route to the destination. L3 also manages encapsulation and decapsulation of data packets.
• L3 acts as the boundary for data movement between local and wide-area networks. Routers operating at this layer ensure data can cross these boundaries with ease.

Transport Layer (L4)

L4 secures reliable data transfer between devices. It breaks down large data into smaller segments, manages data flow to prevent congestion, and ensures data arrives correctly and in the right order.

• Each segment is tagged with information to ensure correct reassembly at the destination.
• Flow control mechanisms regulate data transfer speeds so the sender doesn’t transmit data faster than the receiver can process. The sender adjusts its transmission rate based on acknowledgments from the receiver, maintaining smooth data flow.
• Source and destination endpoints or ports are assigned to each data segment, creating a “socket”. Sockets allow multiple applications to communicate simultaneously on the same device, keeping data from different applications separate and correctly routed.

Session Layer (L5)

L5 establishes, maintains, and terminates communication sessions between applications, ensuring smooth and orderly data exchange. It sets up communication parameters like session identifiers and synchronization points and ensures that resources, like memory or connection slots, are released when no longer needed.

L5 functions also involve:

• Keeping sessions active , preventing conflicts, and ensuring smooth communication. In a half-duplex mode, it coordinates which device can send data and when, avoiding transmission errors.
• Synchronizing during a session. L5 uses checkpoints, specific points in the data stream where the session can be resumed if interrupted. If you are sending a large file and the connection drops, the session can resume from the last checkpoint rather than starting over.
• Handling recovery by retransmitting lost data, maintaining session integrity.

Presentation Layer (L6)

L6 converts data into a format the application layer can understand. Without this, data from one device might be unreadable by another.

Additional L6 functions include:

• Encryption and decryption , securing data during transmission.
• Data compression and decompression , which accelerates transfers and reduces congestion.

Application Layer (L7)

L7 interfaces between the network and end-user applications, allowing users to interact with network services and data. It’s responsible for:

• Defining communication protocols like HTTP (web browsing), SMTP (email), and FTP (file transfers), ensuring applications can communicate over the network.
• Transmitting data between applications on different devices, ensuring data is correctly received and understood, regardless of operating systems or hardware platforms. This interoperability is essential for seamless communication in a heterogeneous network environment.
• Handling final data presentation and rendering , including tasks like displaying web content, rendering multimedia, or formatting documents for printing.
• Implementing security mechanisms , safeguarding data and ensuring only authorized users access certain services or resources.
• Why the OSI Model Is Important

The OSI model standardizes network device and application communication, ensuring seamless data exchange. Its organized approach simplifies understanding, development, and troubleshooting of network systems, providing several key benefits:

• Conceptualizing complex systems: The OSI model’s seven-layer breakdown simplifies and explains data movement through a network.
• Flexible standardization: The model provides universal standards, allowing different network technologies and products to work together efficiently.
• Faster research and development: With clear guidelines and standards, developers can innovate quickly, creating new technologies that fit seamlessly into existing networks.
• Addressing vulnerabilities and security issues: The model helps identify and address potential security weaknesses at different layers. By isolating issues to specific layers, administrators can easily identify and fix problems, apply updates, and customize configurations.
• Enhances interoperability: The OSI model ensures various hardware and software components work together, supporting the integration of modern applications and cloud services into existing networks.

Understanding the OSI model is essential for network design, troubleshooting, or implementation. This framework breaks down complex communication processes into manageable layers, empowering businesses to improve problem-solving, interoperability, and network security.

If you want to enhance your network security, explore Gcore Edge Security products. Gcore offers a globally distributed network that filters traffic worldwide, ready to stop even the most powerful and complex cyberattack. With advanced WAAP services and DDoS mitigation , Gcore’s solutions protect against low-rate attacks from their first request and block malicious sessions, not IPs.

Schedule a consultation with a Gcore Edge Security expert

Table of contents

Try gcore cdn, related articles, what is tcp ddos protection | how does it work, complete guide to configuring kubernetes cluster auto-healing set up, understanding ai as a service (aiaas): exploring its types and applications, how to secure your kubernetes cluster, choosing between edge ai and cloud ai: the best strategy for your project, the development of ai infrastructure: transitioning from on-site to the cloud and edge, what is managed kubernetes, ways to harm: understanding ddos attacks from the attacker’s view, subscribe to our newsletter.

• Production & Operations Management

Facility Location - Factors Influencing the Location

Facility Location is the right location for the manufacturing facility, it will have sufficient access to the customers, workers, transportation, etc. For commercial success, and competitive advantage following are the critical factors:

Overall objective of an organization is to satisfy and delight customers with its product and services. Therefore, for an organization it becomes important to have strategy formulated around its manufacturing unit. A manufacturing unit is the place where all inputs such as raw material, equipment, skilled labors, etc. come together and manufacture products for customers. One of the most critical factors determining the success of the manufacturing unit is the location.

Facility location determination is a business critical strategic decision. There are several factors, which determine the location of facility among them competition, cost and corresponding associated effects . Facility location is a scientific process utilizing various techniques.

Location Selection Factors

For a company which operates in a global environment; cost, available infrastructure, labor skill, government policies and environment are very important factors.

A right location provides adequate access to customers, skilled labors, transportation, etc. A right location ensures success of the organization in current global competitive environment.

Industrialization

A geographic area becomes a focal point for various facility locations based on many factors, parameters and issues. These factors are can be divided into primary factors and secondary factors.

A primary factor which leads to industrialization of a particular area for particular manufacturing of products is material, labor and presence of similar manufacturing facilities. Secondary factors are available of credit finance, communication infrastructure and insurance.

Errors in Location Selection

Facility location is critical for business continuity and success of the organization. So it is important to avoid mistakes while making selection for a location. Errors in selection can be divided into two broad categories behavioral and non-behavioral.

Location Strategy

The goal of an organization is customer delight for that it needs access to the customers at minimum possible cost. This is achieved by developing location strategy. Location strategy helps the company in determining product offering, market, demand forecast in different markets, best location to access customers and best manufacturing and service location.

Factors Influencing Facility Location

If the organization can configure the right location for the manufacturing facility, it will have sufficient access to the customers, workers, transportation, etc. For commercial success, and competitive advantage following are the critical factors:

Customer Proximity: Facility locations are selected closer to the customer as to reduce transportation cost and decrease time in reaching the customer.

Business Area: Presence of other similar manufacturing units around makes business area conducive for facility establishment.

Availability of Skill Labor: Education, experience and skill of available labor are another important, which determines facility location.

Free Trade Zone/Agreement: Free-trade zones promote the establishment of manufacturing facility by providing incentives in custom duties and levies. On another hand free trade agreement is among countries providing an incentive to establish business, in particular, country.

Suppliers: Continuous and quality supply of the raw materials is another critical factor in determining the location of manufacturing facility.

Environmental Policy: In current globalized world pollution, control is very important, therefore understanding of environmental policy for the facility location is another critical factor.

  Related Articles

• Effective Product Design
• Process Design and Analysis
• Integrated Product Development
• Facility Layout
• Demand Forecasting

View All Articles

Authorship/Referencing - About the Author(s)

The article is Written and Reviewed by Management Study Guide Content Team . MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider . To Know more, click on About Us . The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.

• Operations: Policy and Strategy
• International Production Management
• Managing Technology in OM
• Value Analysis
• Facility Location
• Why Forecasting has Become Very Difficult for Individuals, Firms, and Nations
• Capacity Planning
• Aggregate Planning
• Materials and Resource Planning
• Production Planning and Control
• Operations Scheduling
• Waiting Line (Queue) Management
• Inventory Management and Just In Time
• Warehouse and Materials Management
• Material Handling
• Maintenance Policy and Repair
• Quality - A Tool for Achieving Excellence
• Quality Control Techniques
• World Class Manufacturing
• Work Study and Industrial Engineering
• Quantitative Techniques
• What is Learning Curve ?
• Reliability and Redundancy
• Productivity and Its Role in Shaping Economies and Businesses
• What is Productivity and Why it is Important to Corporates, Nations, and Professionals?
• On-Demand Manufacturing
• Operational Transparency

• Skip to primary navigation
• Skip to main content
• Skip to primary sidebar
• Skip to footer
• Image & Use Policy
• Translations

UC MUSEUM OF PALEONTOLOGY

Understanding Evolution

Your one-stop source for information on evolution

• ES en Español

What are species anyway, and how do new ones evolve?

Here, you can explore different ways to define a species and learn about the various processes through which speciation can occur. This section also addresses the topics of cospeciation — when two lineages split in concert with one another — and modes of speciation that are specific to plants.

Let’s start by defining a species.

Mechanisms of microevolution

Defining a species

Subscribe to our newsletter

• Teaching resource database
• Correcting misconceptions
• Conceptual framework and NGSS alignment
• Image and use policy
• Evo in the News
• The Tree Room
• Browse learning resources