Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

What does cross selling involve?

1. Offering discounts to customers

2. Encouraging clients to refer friends

3. Selling additional products from different departments

4. Managing customer complaints

The correct answer is: Selling additional products from different departments

Cross selling involves the practice of selling additional products or services to existing customers, effectively encouraging them to purchase items that complement or enhance their original purchase. This strategy is beneficial for businesses as it can increase sales volume and improve customer satisfaction by providing solutions that meet more of the customers' needs. In the context of the provided choices, selling additional products from different departments is a clear representation of cross selling. For example, if a customer buys a laptop, offering them accessories such as a carrying case or software suite are classic instances of cross selling. This approach not only increases revenue but also fosters a stronger relationship with customers by addressing their additional needs. The other options presented do not align with the definition of cross selling. Offering discounts to customers relates to pricing strategies rather than product recommendation. Encouraging clients to refer friends centers around customer acquisition and marketing strategies rather than enhancing sales per existing customer. Managing customer complaints focuses on improving customer service and retention, rather than maximizing the sales potential of current customer relationships.