🎓 Definition

Trade across defines a strategy that aims at increasing the number of products in the shoppers’ baskets. It could be summarized as “1 More Product”.

A trade-across can be leveraged through multi-pack promotions for example. It can also be built through cross-merchandising analysis (which could impact categories adjacencies) or impulse products purchase.

🧪 Example of Trade Across

Trade-across strategy can be achieved through Product bundling, where Retailers display a product from 1 category with another that serves the customer for the same or similar purpose.

For example,

  • Pairing Shampoo with Conditioner
  • Pairing Toothbrush with Toothpaste
  • Pairing Baby Milk Powder with Baby Diaper

By implementing this, not only can the Retailers increase the number of product purchases per basket, but the sales and profitability will also increase for both bundled categories.

❓What is Trade Across used for
  1. Encourage customers to buy products they might generally overlook.
  2. Introduce customers to products they never purchased.
  3. To increase the product purchased per Basket for each shopper.
  4. To promote slow-moving SKUs. For example, Retailers do a bundling for top-selling SKUs with slow-moving SKUs to boost the sales of slow-moving SKUs.

How do retailers measure the effectiveness of a Trade Across strategy in terms of increased sales or customer satisfaction?

Retailers typically measure the effectiveness of a Trade Across strategy through various metrics such as the average number of products per transaction, overall sales volume, and customer feedback or satisfaction surveys. They may also analyze data on the performance of bundled products compared to individual sales to determine the impact on profitability.

Are there any potential drawbacks or challenges associated with implementing a Trade Across strategy, such as inventory management issues or customer confusion?

While Trade Across strategies can be beneficial for increasing sales and promoting specific products, they may also present challenges for retailers. Inventory management can become more complex as retailers need to ensure sufficient stock levels for bundled products. Additionally, customers might experience confusion or dissatisfaction if the bundled products are not complementary or if the pricing strategy is not clearly communicated.

What are some best practices for retailers to implement a successful Trade Across strategy, and are there any specific industries or product categories where this strategy is most effective?

To implement a successful Trade Across strategy, retailers should focus on identifying complementary products that appeal to their target customers and offer genuine value. Clear communication of the benefits and savings of bundled products can help to increase customer understanding and encourage purchases. As for industries or product categories where this strategy is most effective, Trade Across can be particularly beneficial in sectors with a wide range of complementary products, such as health and beauty, household goods, and baby care.

Learn more about Trade Across
Trade In
Trade Up