Cross merchandising is a type of visual merchandising strategy in which products are displayed next to other complementary products. Cross merchandising is also known as secondary product placement.
Why is cross merchandising important?
By using cross merchandising retailers can increase cross-selling. Since main products are placed right next to complementary products, people are inclined to purchase from both categories.
For example, when you sell flour, cross merchandising would mean placing dry yeast right next to it. These are complementary grocery products. For other types of retail, like beauty products, placing a hairbrush next to the shampoo and conditioner is also considered cross-merchandising.
Cross merchandising makes it easier for customers to find the products they need and helps increase customer satisfaction. Also, it helps increase sales because shoppers might end up purchasing more when seeing products that complete each other.
It’s a great way to advertise new products as well. Placing new products next to well-known complementary products will help increase customer trust for the new product.
By cross merchandising retailers can also help remind customers what they need to purchase. You also help them save precious time because they won’t be wandering around the store in search of a salsa dip for their tortilla chips.
How to cross merchandise?
Cross merchandising doesn’t only mean placing complementary products together. There are more ways in which you can cross merchandise. For example, you can focus on different themes and events.
If there is a holiday coming up, you should rearrange products to attract more attention. Focus on showing all of the products that are perfect for the holiday season. People will be looking for them and it’s best to put them right up front, near the entrance.
One interesting approach when it comes to cross merchandising was from Tesco. They discovered that most people who bought diapers were actually men. That’s why they decided to place products that you weren’t expecting near diapers, like beer and snacks. Of course, when retailers decide to place products that don’t seem to match, they end up attracting the attention of customers.
Another alternative when it comes to cross merchandising is placing substitutes or alternative products next to each other. For instance, placing pre-cut fruits or dried fruits near the fresh fruits and vegetable section is a great strategy if you want to maximize profit.