Effective Cross & Up-Selling
If your business is not utilising cross-selling or up-selling techniques then there could be significant unrealised opportunities to increase your business profits.
The three main reasons for a business to utilise cross-selling and up-selling are:
- The generation of more profit
- Increased customer loyalty & satisfaction
- It is very cost effective
Simply put, cross-selling is the practice of offering complimentary items to the item being sold and up-selling is offering customers an upgrade or superior version of the product or service.
Many larger organisations cross-sell and up-sell to us every time we interact with them, an obvious example of this is McDonlads. If you ask for a Big Mac the first question is “would you like the meal deal?” – This is the classic cross-selling example, coke & fries are complimentary to the burger. If you decide on the meal then the next question is “would you like to supersize that?” – This is the up-sell, the chance to get more of the same thing.
It is important to note that this isn’t a sneaky, underhanded trick to get you to spend more. It is, if done correctly, a genuinely win – win situation. You are adding value from the customer’s perspective and increasing your sales.
I have in the past dealt with some business owners that initially didn’t feel comfortable with either cross-selling or up-selling. Their main concern was that the ‘customer is always right’ they know what they want just let them buy it and don’t hassle them further. This philosophy is doing the customer a disservice.
I recently purchased a new colour printer for home and when I got home there was no printer cable included. Assuming this was not the first printer sold, you might have thought the sales assistant would have known this and taken the opportunity cross-sell a USB printer cable. It certainly would have saved me a trip back to the store and would have demonstrated to me that the sales assistant knew what he was talking about. Also the up-sell opportunity to purchase an extended warranty also slipped his mind on this occasion. Both the cable and the warranty would have added value to my experience!
If you are not talking with your customers to find out what their needs are and offering value added solutions to meet those needs through cross-selling or up-selling solutions then you are not putting their needs first!
If you need advice on how to increase profits and customer loyalty then talk to a business consultant from Watts Price Accountants today about what can be achieved.
Richard Kemp – Watts Price Accountants
The advice provided on this Article is general advice only. It has been prepared without taking into account your objectives, financial situation or needs.