Upselling is one of the best ways to edge in a little more revenue out of your sales effort, give customers more reasons to be satisfied with your company, and help drive the success of your business. So, if upselling isn’t part of your sales strategy, it might be the perfect time to fold it in. Your friends at Spring-Green have made it easy to get started with this step-by-step guide to mastering the art of upselling.
What is upselling?
Upselling is kin to the famously asked question, “Would you like to add fries to that order?” As part of your sales effort, you encourage your customer to purchase a complimentary item to the one they have already decided upon buying.
What is cross-selling?
Cross-selling is the intent of selling a completely different product/service to an existing customer. This can be a positive strategy for the sales team.
Why does upselling matter?
Overwhelming marketing metrics (and general intuitive sense) show that the odds of selling to an existing customer is significantly higher than selling to an unknown prospect. In fact, your chances of making a sale in the proximity of 70% for existing customers while only at the highest 20% for non-customers.
Your Step-by-step Guide to the Art of Upselling
- Lay the ground work -A key step that many businesses bypass when starting an upselling initiative is taking an assessment of where they currently are. You might have some semblance of an upselling effort already taking place. Survey your sales team to find out what is working, what the challenges are, and what they see as a path to growth. This can help create your strategy and your baseline to measure success by.
- Define and segment – Now that you’ve done your due diligence and understand where your upselling efforts are currently, you can build from there. By defining your customer base, you can better target your messaging and product offering to fit the needs of your customer base. Pro tip: don’t go crazy with granular segments. Keep the groups at a high level, so it’s manageable. You can always get deeper into segmenting and targeting as time goes on.
- Define measurable goals – A goal without measurement is a waste of time. You will not be able to celebrate wins, adjust when things are not working, and miss the opportunity to gain clear insight into your business performance. Be sure to set some measurable goals. They can be basic and modest, if you’re uncertain about the way things will go. Of course, once your strategy is set into motion, over time, you may create stronger, different, or more specific goals…but always set those goals and reflect back on them.
- Expand your services – Part of your upselling strategy is to take a look at what you have to offer. What products or services can you upsell currently? Are there bundles or monthly service packages that you could market in a different fashion for an upsell? Upselling opportunities may abound in places you have yet to explore. Define those opportunities and keep it simple at the start, adding on as you goes on.
Master Upselling with Best Practices
- Understand your customers’ needs and wants – Your upselling effort should help your customers. Make sure that you are tuned into your customers’ challenges and providing a solution.
- Define the timing – Every instance is different, but there is a sweet spot for your upselling effort timing that needs to be defined. For some, it may be at the time of the first yes, or for others, it may be after a certain measurable time after the first sale. Variables will change, but defining them is a critical step.
- Be transparent with pricing and provide value – Price and budgets are always on the mind of the customer in some fashion. Be sure to show how your additional service is priced and how that price is worth it.
- Monitor the external landscape – Keeping an eye on trends in the marketplace and competitive offerings. You can also do surveys of your customers to learn more about what they want. This effort should be ongoing as things change rapidly, especially in the environment we are working through during the year 2020.
- Show social proof -Online reviews and testimonials are a top way that consumers make decisions in our digital world. The more that you can show proof that your upselling initiatives are working for others, the more you may be able to close the deal at hand.
- Bring your sales and customer service teams up to speed – Be sure to communicate and train your team to know what to sell, how it’s going to be measured and what tools they have to help them sell. This effort should be ongoing, so the team is empowered to succeed and working in conjunction with the overarching objectives of the business.
It’s been widely established that selling to existing customers is far more successful than acquiring new ones. While, of course, a new customer acquisition strategy is essential, upselling efforts to existing customers can increase revenue, increase customer lifetime values and improve the customer experience – all top goals of just about any business. At Spring-Green, we support our Franchise Owners with on-going business support, that includes marketing and sales strategies. Our priority is to keep them growing and evolving with in the marketplaces they serve – allowing them to take pride in the quality services they offer their customers.