Businesses are always looking for new ways to make more money, keep their customers happy, and keep their cash flow positive. One effective strategy is to give current customers complimentary products to show appreciation and get them to try your new products.
For instance, a related-items online retailer could offer a promotional gift basket of related products to consumers who have purchased from them before. In addition to making the consumer feel valued, these complementary items showcase the company’s wares, which may encourage further purchases.
It is essential to ensure that the free goods help the company reach its goals. Which complementary items will give you the best return on investment through more sales depends on several factors, such as your present best-selling items, upcoming sales, high-margin items, and extra inventory.
A complementary product plan also works best when you know a lot about your products’ popularity and how they appeal to different types of customers. You can guess which things customers will like getting for free by closely monitoring sales data, demographic data, and product reviews.
If you choose the right products and target the right people, surprise-free gifts can build goodwill and happiness, leading to long-term business wins through more purchases. Intelligent use of complementary goods keeps customers interested and opens up new ways to make money.
In this article, we will talk about the importance of offering complementary products.
Offering items that go well with each other and make your present collection better when you are a business person.
For instance, video game devices and games work best together; one would not work properly without the other. Along the same lines as coffee and milk are both good on their own, they work better when used together.
Upselling and cross-selling are sales strategies that align with promoting such mutually beneficial products. If a customer is already sold on a primary controller, upselling them to a more expensive and feature-rich model might be an excellent strategy to keep them returning for more. A good example of cross-selling is giving available game titles complementary to the game to someone buying a console.
Items with seemingly unrelated functions can serve a common goal. Businesses often create collections of complementary products, or retailers stock their shelves with complementary items. Customers are more likely to buy more of what they need when presented with products that work together harmoniously. This allows companies to boost sales without putting undue pressure on every add-on.
Promoting items that work well together encourages customers to buy them in bundles. Supplements that provide access to new features or improvements are well-received by buyers. Effectively meeting customer requirements requires skillful mapping of complementary relationships.
Products that work well together tend to have a lot of demand overlap and be used together. Still, the level of connectivity can be different.
Strong things that complement one another work hand in hand and depend substantially on one another. For example, consider razors and blades; you can’t shave with one without the other, and each type of blade is made to fit a particular razor brand. When the price of razors goes up a lot, people will buy a lot less of their blades, which is quite unusual.
On the other hand, weakly complimentary things are less dependent on each other and have higher levels of autonomous desire. For example, people often buy popcorn and a drink together when they go to the movies, but both things are also in high demand. If soda costs rise, popcorn sales might go down a little.
Tennis rackets and balls are another example of a pair that could work better together. Both are necessary for a game of tennis, but customers can and do purchase them independently. If the price of tennis balls went up, there might be a small drop in racket demand, but most people would probably just keep playing the sport they love.
The difference between solid and weak complementary things is how much they depend on and are affected by each other’s availability and price.
Offering complementing items might be beneficial for businesses. These products can help companies to stand out from the competition, boosting sales and bottom-line results. Depending on the organization’s objectives, several ways can be employed to accomplish this with supplementary goods.
Offering complementary items can positively affect a company. Let’s look at some benefits of offering additional products:
To boost sales, businesses might employ complementary commodities. Advertising complementary products by putting them side by side on an eCommerce site or positioning them next to each other in a brick-and-mortar store can increase sales of both items. Sales and income are boosted as a result. Customers also gain because they can purchase products that complement one another, increasing the overall value they receive.
By incorporating complimentary items into their pricing plans, businesses can enhance long-term revenues and customer loyalty. A game console manufacturer, for instance, may incur a tiny profit or even a loss in the beginning by selling the consoles at a discounted price.
They can quickly increase their market share due to the lower barrier to entry, which makes it easier to convince price-sensitive shoppers to acquire the console. Once they’ve built up that sizable client base for their consoles, the business stands to gain substantially from the subsequent sales of the full-priced games and peripherals that go along with them.
As a result of gaining access to the original console at a tempting discount and continuing to be happy buyers of the entire gaming ecosystem, users also enjoy significant value. Sales continue to rise even though console prices are falling.
Complementary accessories and secondary purchases, which may appear “optional,” allow companies to charge more, resulting in more significant profit margins.
For example, printers generate far more revenue by selling replacement ink cartridges than by selling the printers themselves.
When companies offer a variety of items that work together under one brand, consumers are more likely to recognize that name and be loyal to that brand since they can get complete solutions rather than individual products.
Various items that are compatible with each other increase your presence in that field.
If demand diminishes, you could lose money if you depend on individual items’ sales. But supplementary items help lessen the blow; when demand drops for one, supplemental items might keep the lights on.
This diversification enhances the stability and predictability of corporate performance. For example, even while sales of cameras are down, people may still buy lenses and other accessories.
Businesses employ a variety of tactics to introduce and offer customers supplementary products. The nature of the firm and the items offered will likely dictate the chosen strategy. Companies often employ the following strategies when marketing complementary products:
One effective tactic for highly complimentary products is to sell the base product cheaply and then offer the supplementary products at a higher price. Frequently, the more costly component is a consumable good by clients continually purchase to maintain their usage of the primary offering.
For example, a basic t-shirt can be priced at $15, while a scarf of the same brand can be priced at $30. Customers may be initially attracted to fashionable and cheap t-shirts. But they also can be tempted by the more pricey accessories to enhance their wardrobe.
The idea here is that although the markup on each t-shirt may be lesser, the brand can still make up for it with the higher-margin sales of accessories. Furthermore, accessories tend to enjoy a higher perceived value, which gives the brand a chance to justify the higher prices to their customers. This approach segments the market into a low-priced base product to attract customers and a higher-priced supplementary product to generate revenue.
You may charge high for a main product, and then you can provide discounts or sales on additional items. This tactic might be effective if the cheaper item is also sold separately and the sales encourage people to buy the more expensive base product.
Even if the items’ complementary relationships are poor, they can still function. In cases where the company’s lower-priced product is selling well but the higher-priced item is not, this tactic can be quite effective.
For example, a luxury watch from the company’s line could be priced at $5000, whereas a top-notch leather watch strap could be priced at $200. Even though the watch band is cheaper, it is built with the same careful detail as the watches.
The strategy invites clients to purchase the higher-priced luxury watch when they are offered an accessory at a discounted price. Whether there is a direct relationship between the watch and the watch strap or not, the discount will encourage the customers to purchase both items at once. Thus, the brand’s overall sales will be increased.
Businesses can also boost complimentary product sales by bundling them. Offering a drink and dessert combo with the main course could entice customers who would otherwise pass on those products. You can boost sales of less popular items by offering a special price when combined. With weak complementing elements, this method typically works.
For instance, if you have a restaurant, you can bundle complementary products to improve sales. “Free Drink with Every 12-inch Pizza” can be an offer you can launch right before a big event.
Customers can enjoy a wide selection of drinks with 12-inch pizza orders, from soda to wine, without extra charge. Since it’s complimentary with the pizza order, it encourages customers to order drinks even if they wouldn’t have otherwise. Bundling allows restaurants to maximize revenue by promoting less popular things, such as drinks, at a discounted price when purchased with the primary product.
Both brick-and-mortar and eCommerce sites can benefit from strategic product placement. Customers are more likely to buy related items when they are displayed together. When the prices of the two products are close, this strategy can increase both sales.
Additionally, it might be helpful when the price gap between the two items is enormous. Imagine a grocery store that sells frozen fish goods right next to frozen chips. Putting them together increases the likelihood that the buyer will buy both products, even if they already consider buying only one.
Offering goods that go well together isn’t just a nice thing to do; it’s also a smart business move that could help your bottom line. By carefully choosing things based on data and focusing on the right customers, you can build customer loyalty, get them to buy more, and even get rid of extra stock. Remember that a well-thought-out plan for related products can turn gifts that don’t come as a surprise into long-term business wins. Don’t forget how powerful a little something extra can be!