How can cross-promotions enhance a retailer's performance indicators?

Cross-promotions enhance a retailer's performance indicators primarily through bundling products together to increase average transaction values. When products are promoted together, customers may be encouraged to purchase additional items that they might not have considered buying individually. This strategy not only makes the shopping experience more appealing but also leads to a higher total sales amount per transaction.

By bundling items, retailers effectively create a perceived value for customers, as they may feel they are getting a better deal or more comprehensive solution by purchasing a group of items together. This increased average transaction value directly contributes to improved sales metrics and overall business performance.

In contrast to this correct approach, options that suggest solely increasing return policies, decreasing customer satisfaction, or limiting the selection of items do not support the objectives of cross-promotion or any enhancement of performance indicators. These approaches could potentially deter customers or limit their purchasing options, leading to reduced sales and customer loyalty.