How many people realise that every time you order a McDonald’s meal, the servers and cashiers are trained to upsell and cross-sell?

“May I have a Big Mac?”

“Sure sir, do you want fries with that?” (Cross-sell)

“Yes please.”

“Medium or large sir?” (Upsell)

“Large please.”

“Sir would you like a coke with your meal?” (Cross-sell)

“Yes please.”

“Medium or large sir?” (Upsell)

Even though you’ve ordered once, you’ve made multiple purchases.

Most sales people are taught to stop selling once they get the order and more often than not they do, but to ensure that you add value or show additional worth, it’s always a good idea to keep an ace up your sleeve.

Leave some arrows in your quiver to ensure that you’re able to grow the client and generate continuous revenue. Your sales will grow above required management and industry growth.

Three Main Benefits of Upselling

Upselling builds profound customer relationships

When you make an effort to express the benefits of buying a more expensive version of the same product and the customer is willing to make the purchase, it’s a win-win situation to you as well as the customer. Here you have to talk about the value the product adds to the comfort of the customer. You need to understand that upselling in not a hard core sales strategy or technique. Both you as well as the customers get the benefit of upselling and this leads to a strong customer relationship.

Upselling to an existing customer is easier

The authors of the book “Marketing Metrics” revealed an interesting research finding. They revealed that “the probability of selling to a new prospect is 5-20%. The probability of selling to an existing customer is 60-70%.” This is actually a huge gap. The metrics show that it’s easier to upsell to an existing customer than to a new customer. Also, it helps to increase the revenue and meet the seller’s target.

Upselling helps identify your best customers

Your loyal customers have a well-accepted history with your services or product. These customers are those who were with you during the initial stages before committing to full roll out. The best customers grew with your product and are the loyal ones who look forward to the release of your new products. Though initially, you may not have much data on your customer’s behaviour, with time you will be able to understand the purchasing power and increasing usage of your products by the customers. Using this data, you can draw a timeline on how a good customer uses your product. Analyzing the life cycle of each customer will let you know if the customer is on track for upselling or whether he wants further support or onboarding. These analytics can help you in your marketing campaigns and strategies.

Resources:

  1. The Small Business Site: http://www.thesmallbusinesssite.co.za/2017/09/27/importance-upselling-cross-selling/
  2. Apptivo Small Business University: http://runapptivo.apptivo.com/importance-of-upselling-for-small-business-enterprises-13265.html