If growth is your primary goal, take note of these two essential sales strategies: cross-selling and upselling.
Why? Because it’s much easier to sell to existing customers than to acquire new ones. According to Marketing Metrics, the probability of selling to an existing customer is 60 to 70 percent, while the likelihood you’ll sell to a new prospect is just 5 to 20 percent.
Some entrepreneurs use the terms “upselling” and “cross-selling” interchangeably, but there is a difference. Read on to learn how to generate more income by working these two sales strategies like a pro.
Cross-selling is simply inviting your customers to buy a secondary item that naturally bundles with a product they’re already purchasing. You’ll get the best results with cross-selling when a complementary item is offered at a much lower price point.
Let’s say your customer is interested in buying a printer. Asking if they already have printer paper at home is easy cross-selling. Rather than being perceived as pushy, it’s good customer service to ask your customer if they have everything they need. You’ll make it even easier for your customers to buy more from you by offering a discount when they purchase two items at the same time.
“Would you like to save 10% on printer paper with your printer purchase today?” is an offer plenty of customers will find hard to refuse.
When you upsell to a customer, you’re asking them to consider a higher-priced upgrade during a sales transaction. Think of an upsell as a recommendation: you’re endorsing the best version of a product or service your customer is already planning to buy.
It’s usually much easier to upsell a customer than to cross-sell. Paying more for the premier option is a smaller stretch for a customer than deciding to buy something extra that wasn’t initially part of the plan.
Whenever you’re telling your customers about a product’s features, suggest the benefits of the premier option. Even if they decide not to buy at the highest price point now, they might keep it in mind for next time. Upselling often happens naturally in sales when the focus is on the product that would best meet your customer’s needs rather than starting with price. Explain the differences between two or three options, providing all the info your customers need to make the best choice to meet their needs.
As you integrate upselling and cross-selling into your sales strategy, always keep your ideal customers and their needs top of mind.
By being knowledgeable about the problems your customers most want to solve and able to provide honest, helpful advice – your customers will grow to trust you and your recommendations. Over time you won’t have to think about upselling or cross-selling. They simply become a natural part of any sales conversation when you stay a step ahead of your customers, able to offer the perfect recommendation for what they need, whenever they need it.
As you can imagine, after decades in the Cornish business community, we have accumulated a great deal of experience in helping businesses boost their sales. If you would like our dedicated support as you develop your business, contact us for an informal discussion. We’d love to join your team.