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22 kwietnia 2022
Profitability of Promotions and the Benefits of Cross-Selling
Profitability of Promotions and the Benefits of Cross-Selling


Financial consultant at Datawiz

Increase the cost of the average check without losing customers.

What challenges do retailers face?


The most important retailers’ goals are to increase profits and increase sales. To do this, chain stores resort to various methods of stimulating the sale of goods - running promotions (like BTL *) - actions aimed at promoting the product and influencing customers.


Learn how to increase your average check value with Datawiz BES.


As a result of promotional campaigns, retailers, as a rule, receive attraction of a large number of customers (including new ones), brand recognition or specific products, and, of course, increase sales.

But besides this obvious benefit of running promotions, retailers also face some challenges:


  • Reducing the average check. This can happen when both numbers of buyers and checks have increased. But the cost of the average check has decreased due to the growth in sales only for promo products and not for the entire range.

  • Reducing the number of checks. When trying to increase the average check by raising the prices of goods that are not in the promo, the number of checks decreases, and in some cases, an outflow of customers occurs.

  •  Promo failure. This is a situation when, for some reason, the costs of the past promotion campaign were not covered.


Therefore, in order to make a promo profitable, it is not enough just to increase sales and attract as many customers as possible. For additional profit, it is necessary to increase the average check without losing customers. One of the ways to increase the average check is to sell additional items - cross-selling.


What is cross-selling?


This is a selling mechanism when the client is offered to purchase an additional product along with the main product. For example, sauces for meat products or cookies for tea, etc.

Stores most often use a cross-selling model of "expensive main product and cheap additional one". Moreover, the additional product is much cheaper than the main one, so the increase in the average check is not very noticeable for the buyer.


The Datawiz BES platform will help you find paired product relationships. Using the

Apriori algorithm, you can analyze all shopping carts and find the main and additional products.


With this information, you can plan your promo more effectively. By including key products in a promo, you will receive additional profit from the cross-selling. You will be able to use the trading floor more efficiently: place promotional products correctly next to additional ones, and install promo displays and signs.


Increase sales and profitability of your business without additional costs!

* BTL (from English below-the-line) - the term BTL combines promotions, exhibitions, POS (from English point of sale - a place of sale), etc.

In Western business, BTL refers to advertising technology that uses less intense/persuasive methods than conventional advertising. BTL events are aimed directly at the consumer. BTL promo is aimed not so much at the sale of goods, but at the attitude and awakening of public interest in the brand and its products.



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