There is a saying in Sales – That if you can get a customer to say yes once – it’s highly likely that he will say ‘Yes’ again.
Most of the folks in sales are well aware of the term ‘upselling’, but for those who aren’t, it’s a sales strategy where a salesperson will offer the buyer an opportunity to purchase related products/services to enhance the experience of the product.
Let’s say you walk into a high-end gadget store to buy a new phone.
So if you’ve just said Yes to Purchasing a mobile – the salesman would suggest you have a look at a pair of good headphones – may be a memory card and probably a nice looking cover for your phone as well, all related to your product which will make it better. This what upselling is – offering your customers a few more products that will enhance the experience of their primary purchase.
Upselling, when demonstrated in a mindless way loses customers, which is why it’s very important to ensure that your upsells blend-in seamlessly with your core product.
Here are five things you can do effectively to create targeted upsells around your core offering helping you increase the average order size while you woo them:
Never Show Desperation:
Like every other organization, it’s your top priority to make your business as profitable as you possibly can – yet you should never make upselling your foremost sales agenda. Instead, train your team to consider it as an afterthought. That way your salespeople will avoid using High-Pressure Sales Tactics that would drive away sure shot buyers.
Interacting with your customers on a more personal level and letting them know you care is definitely important to develop a stronger bond. But you should not be overdoing it.
While dealing with a high-priority client, it’s natural for your team to want to introduce them to high-end add-ons and upgrades related to the core products and services.
There is nothing wrong with this. But customers aren’t as clueless about matters as they might appear! Overstating the importance of your upsells, or hyping up facts will kill your profits in the long run – because business thrives on customer loyalty and high-pressure sales tactics will destroy customer loyalty.
Understand THEIR Priority:
A business would never be able to grow if it cannot retain customers. Spend more time getting to know your customers and analyze what their priorities are. Let your caring attitude do the bulk of the talking, and you’ll see your consumers automatically coming back to you.
The concept of upselling doesn’t necessarily have to be as self-serving as it has come to be. You need to be aware of the fact that not every customer actually ‘qualifies’ as a high-priority buyer. The pitch for an upsell shouldn’t be made on random selections. You should single out the clients who demonstrate affordability and inclination and target them with your add-ons and upgrades.
Don’t Sell More of the Same Thing:
If you were to walk into McDonald’s and order a burger for Rs. 99 – the cashier would then upsell you some coke and fries. If the cashier instead offered you a bigger burger that not only cost more – but wasn’t what you asked for in the first place. Chances are he would have just lost a valuable opportunity to increase the average order size because he ended up selling more of the same thing.
Ensure that your upsells are value offerings that enhance the experience of the core product.
Try to structure your core offer with Minimum Buy Ins:
A tripwire offer or a minimum buy-in is a great way to get a customer excited to make a purchase from you.
For example, if I were selling a video Course on How to make money on the internet – I would first create a low priced tripwire offer for an E-book that cost $99.
Upon purchasing my E-book I would then retarget him with Facebook advertisements and email newsletters offering him My Internet Money Video Course Priced at $999.
Since I first made him my fan by offering him so much content for just $99 – a segment of customers would want to know more about this video course. This will allow me to slowly guide them up to the Value Ladder –offering him a video Course that would permanently make him my true fan.
Try Using One Time Offers:
One time offers are upsold that will expire if the customer doesn’t make a purchase NOW.
Let’s take this situation if a customer purchases a pair of trousers from your store – A onetime offer could be a 50% discount on a shirt that is only available for the next 24 hours.
Human beings are driven by two primary emotions – pain and pleasure. One time offers to allow you to tap into these two emotional drivers.
At the end of the every sales interaction – you want your customers to feel they’ve received 10 times the value they paid for.
Push for upsells if you truly believe that this product can enhance the core offering. Don’t compromise short term profits for long-term-buyers-regret.