What is cross merchandising?

What is cross-merchandising, and why does it matter?

Here’s how cross merchandising can help boost sales of fast-moving consumer goods
Even the most loyal shoppers are only going to spend money if they can find the products they want to buy. If your company is experiencing disappointing sales, then the problem might not be so much about what you’re selling, but how
you’re selling it. Merchandisers have many tricks of the trade at their disposal that attract customers and boost their sales, and a lot of them start at the store shelves. Few of these methods have proven as effective as cross-merchandising, Here’s how it works, and how to make the most
out of it:

What is cross-merchandising?

Cross-merchandising, also known as cross-selling, is the practice of showing related products alongside each other. Cross-merchandising is common in both online retail and in traditional stores. However, it’s especially effective in the case of fast-moving consumer goods (FMCGs), where purchase decisions tend to be made on the spot and with minimal research beforehand. For example, it makes sense to place pet food next to bowls, while
bags for pet waste might sell more easily placed in the aisle for cleaning materials.

What are the benefits of cross-merchandising?

The most obvious benefit of cross-merchandising is that it increases sales, but that’s far from the only advantage. While linking products together in such a way can encourage customers to buy more, it also improves their shopping experience.
Cross-merchandising is a proven way to attract customers and build loyalty. Keeping related products in the same place is convenient, because it means customers don’t have to spend so much time looking for what they need. Together, these benefits add value to your business and improve customer experiences.

5 examples of cross-merchandising in action

Here are some proven cross-merchandising examples that should work for any FMCG
retailer:

1.Tap into shopper missions

Most customers enter the store with a specific purpose, so it’s important to tap into the shopper mission by positioning items in such a way that they speak directly to their needs.For example, people often like to buy beer and bar snacks together
, so why not place them together?

2.Make customers' lives easier

No one wants to spend time looking for dependencies required for another product to work. For example, If a POP display sells flashlights, then you could add batteries to it as well, so customers don’t have to go to the electronics section or worse, forget to buy them.

3.Remind shoppers of their needs

It’s easy to forget the little things, so it helps to remind shoppers of their needs by using cross-merchandising to suggest other relevant products. For example, selling salad dressings and other condiments next to the greengrocery section can help ensure they don’t forget anything.

4.Group products by occasion

Cross-merchandising is one of the most powerful ways to highlight special occasions, such as Christmas, Halloween, or Black Friday. Retailers often group items together to encapsulate a special event or promotion, since it’s convenient for shoppers, and it can supercharge sales.

5.Demonstrate a product’s uses

Sometimes, the use for a particular product might not be immediately obvious. By displaying these products alongside those meant to accompany or complement it gives customers ideas. For example, it makes sense to sell spicy Mexican sauces alongside other Tex-Mex products, rather than with the other more familiar sauces.

How can technology help?

Thanks to emerging technologies like computer vision and supermarket shelves equipped
with RFID tags, it’s now possible to continuously improve your customer experience based
on data-driven insights, just as it is in online retail. These solutions can provide a detailed overview of store efficiency by instantly revealing opportunities for improvement. For example, before and after images of store shelves, analyzed using computer vision and AI, can provide valuable insights into things like product placement, brand popularity, and stock levels.
Cross-merchandising is a powerful strategy that adds value to the entire shopping experience to both the benefit of your customers and to your business. Incorporate cutting-edge tech into the mix, and you’ll also be better positioned to make informed decisions based on facts rather than assumptions and guesses.

Inspector Cloud is changing the CPG sector with its award-winning image recognition
solution. Our powerful, AI-driven software slashes retail audit times, eliminates human error,
and offers a detailed analysis of store efficiency.
Get in touch
today to find out more