How Polar generated $1.8M in new revenue by rediscovering cross-selling
The cost of acquiring a new customer is five to seven times greater than the cost of retaining or expanding an existing customer account. However, only one-third of top performing organizations report their customers understand the full scope of their services, products and capabilities. And, while 74% of companies claim they're trying to cross-sell, up to 90% of these efforts ultimately fail (Gartner Group research).
When Charlie Puissegur was the vice president and general manager of The Polar Companies, he discovered a major problem. The sales team was not effectively selling the company’s full range of industrial fluid products and services, and the company was missing out on thousands of dollars in revenue each year.
Crossbridge helped Polar create a compelling case study to demonstrate cross-selling examples and techniques. Charlie tracked the data for a three-year period, which indicated the training and development effort had produced significant results.
By the end of the first year, cross-selling efforts produced nearly $600,000 in new business. The second and third years produced another $600,000 each, for a total of $1.8 million in revenues derived solely from cross-selling.
Cross-selling is an effective way to jumpstart sales revenue. This is particularly true if you have a solid track record of delivering useful products and services that produce results.
It's more important to reach those who count than to count those you’re reaching. Who counts? You’re already acquainted with them. They’re the customers who know you, trust you, buy from you and are likely to buy again.