Part 2b : Up selling & Cross selling
Up selling really is one of the most powerful marketing strategies you can implement.
If you’re not already doing this you’re almost guaranteed to increase your profits by implementing this strategy, and the great thing is, it’s really easy to do so.
To describe it simply, it’s the process whereby you attempt to get a customer to purchase more then they originally intended by recommending additional products or services that add value to the original sale, once they have already decided to purchase something, or right before they are about to do so. The important thing to note that this must occur at the same time the original sale is taking place.
Here are some easy examples of some common up sells you may have already encountered:
- adding side dishes to a food order
- suggesting a premium brand of alcohol when a brand is not specified by a customer (such as offering Captain Morgan if a customer simply requests a “Rum and Coke“).
- selling an extended service contract for an appliance
- suggesting a customer purchase more RAM or a larger hard drive when servicing his or her computer
- selling luxury finishing on a vehicle
- offering tripod, filters, and lens wipes with a purchase of a camera
- suggesting a brand of watch that the customer hasn’t previously heard of as an alternative to the one they are considering.
As you can see up selling is used almost everywhere by everybody, simply because it really is that powerful.
Once the customer has already decided to make a purchase, psychologically he is committed to spending money with you and will be wide open for adding something else to the sale.
Here is another great example that shows how a pet store drastically increased the value of a sale while at the same time leaving the customer thinking what a great deal they got, and as a result, very satisfied.
When the clerk sees Sam looking at the budget-priced gold fish, she leads him over to the much more impressive tropical fish.
“As you probably know, you will need a fish tank,” she says. “These beautiful fish only live in salt water. We have these $75 salt water tanks on sale for just $49.95.”
By the time Sam exits the store, he has purchased much more than the twenty cent gold fish he originally came in to get. He is proudly carrying home several exotic species, a $50 fish tank, fish food, a light, and other accessories. The sale went from a tiny twenty cent transaction to nearly $100. The store’s profit margin rose right along with it.
As you can see upselling is a great strategy that not only increases your average sale price per customer, but also ads additional value to your customer purchase.
Keep in mind that as an expert in your business, you need to become a trusted advisor to your customers, and make sure you use upselling to offer a more complete solution to your customers needs.
In many causes a customer will choose to purchase something for a specific need that they perceive will resolve their problem, however in many cases, its simply not enough, and it’s your duty (for your customer and your bank account) to recommend a more complete solution to resolve their needs.
Remember upselling is as much getting customers to purchase additional products or services from you, then it is for them to purchase an upgrade on their initial sale.
A good example in the fitness business is the guy who advertises a low priced once a week personal training session which has good response, and then recommending a more advanced intensive service you provide that may consist of 2 days per week:
It can go something like this:
“This program works well, however if you get on program XXX you should be able to get double the results in half the time.” If a product or service works much better with a complimenting item or upgraded version, be sure to tell customers about it.
You should always have a mode “advanced” version for every product or service you offer that you can recommend to prospective or existing customers, or you missing out on additional revenue.
Tags: 2b, Additional Products, Alcohol, Budget, Captain Morgan, Cross Selling, Customer Purchase, Food Order, Gold Fish, Hard Drive, Marketing Strategies, Pet Store, Premium Brand, Profits, Rum And Coke, Service Contract, Side Dishes, Spending Money, Tripod, Tropical Fish


Tue, Nov 24, 2009
Small Business Marketing