Most Business Owners and Marketing Managers I meet just want customers to walk in by finding them on Social Media, their Website or another activity they may be doing but forget about the people they are currently working with.
This is fine but if you want a regular increase in business and profit, this way is quicker…
It’s 68% more expensive to acquire a new customer than it is to up/cross sell to a current customer!
Whats the difference between Up-selling and Cross-selling?
Up-selling meaning – persuade a customer to buy something additional or more expensive.
Cross-selling meaning – Cross-selling is the action or practice of selling an additional product or service to an existing customer
By doing one or both of these two things, WILL generate more business!
Watch this video about Up-selling and Cross-selling – 10minutes and 50seconds
For example; If a client purchases one of your products, offer them another product or service which complements the one they are already purchasing.
This could be for a number of reasons:
- it would naturally and logically be the progression from buying the first product or service
- the client isn’t currently aware that you deliver this additional product or service
- you have targets to hit for the week, month or year
You could also offer it at a slightly discounted price… Although you may have heard Amanda talk about discounts and offers NOT being an option! You SHOULD be showing the customer the VALUE you will deliver, once they have purchased the product or service which then means the discounts or offers are irrelevant.
[ctt title=”The main reason why people quibble about price is because they cannot see the value in what you do! #koogartip Follow @koogar” tweet=”The main reason why people quibble about price is because they cannot see the value in what you do! #koogartip Follow @koogar” coverup=”fdEcS”]
I understand that sometimes we either need to or want to get rid of something. So, in this case a reduced rate is appropriate, but what I want to ensure is that you do not playing a price war. ANYONE can reduce their price but what usually comes with that is also a reduced service or quality to the product.
You don’t want to be known for that!
3 Tips to get you started…
You should make Up-selling and Cross-selling a regular occurrence within your business to help push you towards your sales targets! Here are 3 tips to help you get started…
1. Segment your data/ Customer Base
You only need to put them into 3 sections; who are they, what have they already bought, what else could they buy… By segmenting your customer base, you will be able to see how much more business is available to you immediately!
2. Map your products/services
This is about understanding the buying process within your own business. Which services are most popular, which ones are bought first, second and third, why your customer buys in that order. By knowing this information, you are ready to sell more because you will know what comes next.
3. Create your perfect Customer Journey
Developing your customer journey takes customers from one place to the other. Firstly, not knowing who you are or what you do to finally buying from you and referring you on to others. Create a step by step process so you know what journey people take depending on your products and services as well as your marketing activities.
Putting an up-sell and cross-sell plan into place will show you how to get more business more easily and with the perfect customer!
Let us know how you get on by leaving a comment below.
I have a MASSIVE opinion on this and although I do practice cross-selling I firmly believe that it is an unrecognised artform to be able to carry it off without ‘Painting Seagulls’ in the words of Sandler.
Third party story; (another sales tip here for anyone that chooses to do some homework)…
SALES TIP OF THE WEEK: Don’t Paint Seagulls in Your Prospect’s Picture
The STORY:
Fred, a floor salesperson who really believes in pushing the sale along, had spent enough time to learn exactly how the prospect was going to use the product. But there was a problem: Fred was convinced that the prospect really didn’t see all the ways the product could be used, this was the reason in his opinion that the four previous attempts at closing had not worked (I don’t ‘CLOSE’ just for the record). There was only one solution. He decided to tell the prospect about all of them.
You know, Mark,” he began, “You haven’t thought of all the ways you can use this product.”
Mark turned his head to one side and responded, “Oh really.”
“Absolutely. If you have a few more minutes, I’ll be glad to tell you about some of them.”
Mark nodded his head “yes” and then added, “But I really only need it for the one purpose…”
“Well, not only can you use it for that, but in addition it will…” and launched into an extended description of all the other ways it could be used.
About fifteen minutes later, Mark looked at his watch and stated, “Fred, I really appreciate the education. Look, I’m going to be late for a meeting.” As he got up to leave, he added, “Why don’t you send me some literature when you get the chance. I’ll call you when I look it over.”
“Fine. I’ll get it right out in the mail to you. Thanks for stopping in.”
Fred left and immediately headed to the nearest competitor where he walked in, pointed to the product, and said, “If you have that in stock, I’ll buy it now.” And the competitor did.
The RESULT:
This happens more than most salespeople want to admit. The salesperson at the competitor’s probably assumed the sale was one of those lucky sales – someone walks in, points, and walks out with the product.
Fred lost the sale because he believed that he knew better than the prospect how the product should be used. He ignored what the prospect said just before he launched into his educational presentation. Fred painted a picture that the prospect could not buy into.
(The salesperson at the competitor’s had no idea that Fred forced the prospect into his arms).
DISCUSSION:
Fred made two major mistakes in his presentation. Firstly, he ignored Marks statement that he knew how to use the product and secondly; he went on to explain how to better use the product (totally ignoring Marks’ immediate need). To make matters worse, the chance of Mark ever going back to Fred is pretty slim. Why go back to deal with someone who won’t listen to you? and who insults your intelligence?
APPROACH:
It is tempting to anyone in business to display their product knowledge whilst trying to convince someone to buy. After all, unless the product has never been sold before, somebody is using it and probably veryy effectively. Learning how the product is being used is important information for a salesperson to have. It is not important to tell a prospect how he should use the product. Asking your prospect the right sequence of questions leads him to understand how he could use the product. This process, self-discovery of product usage, is a powerful incentive to buy.
When Mark told Fred that there was only one purpose he could see for the product, Fred should have quite simply asked: “How would you use it?”
Mark would then have responded by describing exactly why the product would be useful. At the conclusion, all Fred would have had to do was ask, “What do you want me to do?”
The prospect is the one who will use the product, not you (never presume you know better).
The time to cross sell in my opinion is after you have been to the bank (meaning, for anyone that hasn’t been through my sales development is that you have payment IN YOUR HANDS for the product you were meeting initially to discuss). I usually ask one question whilst I am shaking my prospects hand as I turn to leave “I’ve looked after you well Mark, it has been my pleasure also and I like to think that because I was so open and honest with you that you would ask me to advise on any of our other services that could potentially compliment the product you’ve just invested in, am I right?
Job done, future business commitment confirmed. THAT is a cross sell!
Here endeth todays lesson!!