Upselling and cross-selling can boost the revenue of any business and help strengthen its relationships with customers, regardless of the industry the business is in. The best part of it is that while implementing these tactics, businesses don’t need to spend a single cent. Income continues to grow while investment remains zero.
But that’s not the only benefit of upselling and cross-selling. Here are tips to make them work to your advantage.
But before we go there, let’s define the two terms first to make sure we’re on the same page.
Cross-sell: Selling customers a product or service that supplement or complement their purchase. For example, you purchased a new phone then the seller offers an on-sale protective case. That would be cross-selling.
Upsell: Getting customers to purchase an upgraded or premium version of what they purchased. For example, you purchased a ticket for a basketball game and the seller offers you a courtside seat at a discounted price. That would be up-selling.
Conduct regular business reviews
Performing regular business reviews is crucial for your enterprise because they allow you to see your clients’ needs. And understanding these needs will help you appropriately position your new or additional offerings.
You don’t want to barrage your customers with constant promotions. Since they already purchased from your company, your aim is to help them achieve more success by offering suggestions. Once a customer has a product or service in mind, they’re really not interested in anything else. However, a product or service that will make their first choice better is something they can go on board with.
Remind customers they need you
Remembering what makes your business stand out, and why many choose you over your competitors in your messaging will instill a sense of brand loyalty into your existing customers. This may even lead them to refer others to you.
Appeal to your customers’ emotions when doing a brand campaign to win their lifelong loyalty. Tell them why they need you. Be confident. Instead of asking them if they would be interested in knowing more about your product or service, tell them directly they need it. By doing so, you gain a higher chance of closing the cross-sell or upsell.
Consider testing your upsell and cross-sell tactics to your past customers first. Since you already have their contact information, you can easily come up with targeted lists for your specified messaging and campaigns. This step keeps things organized as it ensures the right people get only the information most relevant to them.
Make sense and be honest
Suggesting a cross-sell or upsell that completely misses customers’ needs will not only frustrate them but also put their relationship with your business at risk. Ensure your suggestion fits your customer’s exact need at the exact moment you’re discussing it with him or her. Listen intently to their needs and desires to determine which of your products or services could help them, then offer an upsell or a cross-sell.
When finding a good fit for a customer’s purchase, you and your sales team should be honest and transparent to earn the customer’s trust and loyalty. Once a customer feels at any point that something is not right, he or she will leave.
Be upfront when you try to upsell or cross-sell customers. When you’re transparent about your deals and pricing, the more likely they will take your upsell or cross-sell offer.
Provide real-life experiences
Once you’ve proven that a cross-sell and upsell offer works, you need to demonstrate the value your additional service or product gives to your customers. You can use testimonials or positive customer reviews to show potential customers how the additional offering you’re pitching can help achieve their goals. Ensure that the value is clear to your customers so they’d be confident that their purchase was a logical decision.
You may consider capturing the stories of your satisfied customers to create a case study. It’s always more effective to provide real-life examples than abstract descriptions. Once the case study is complete, send it to a few other clients who you think would benefit from your additional offerings. You may send it via their emails or social media accounts.
If you can’t produce a full case study, try getting quotes from some of your clients and ask them if you can use the quotes as reference.
One way to make your customers feel valued is by giving them loyal-customer discounts or gifts if they buy something again. You can also consider implementing a point system where customers earn loyalty points with their every purchase. You can use social media ads to remind repeat customers that they can use their saved-up points to splurge.
Before you implement your incentives, you’ll need to figure out their ROI first. Make sure the numbers make sense before testing some of the offers out with your customers. See which ones get the most responses. Remember: while incentives can increase your revenue through cross-selling and upselling, focusing on the primary purchase should always come first.
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