- On July 4, 2019
…Do you want fries with that?
Anyone who’s ever been to a fast food restaurant knows that they are royalty in the world of upselling.
The technique is drilled into their employees from the get-go, and is essential for keeping profits high. You only went in for a cheeseburger, yet somehow you find yourself leaving with an entire large meal, a milkshake the size of a small biplane, and some cheesy bites for good measure.
Another example of this is Amazon, who has attributed up to 35% of its revenue to its “Customers Who Bought This Also Bought” and “Frequently Bought Together” cross-sale features.
What can the channel learn from this?
In simplest terms, the goal of any channel partner is to sell the product or service provided by the vendor. However, we all know it doesn’t stop there – in order to reach sales targets, upselling or cross-selling may be a necessity.
There is, of course, a limit – some customers or clients will grow tired of you relentlessly trying to shove product upgrades down their throat, and your efforts may produce the adverse effect – so be sure to get it right!
- Keep it Simple – If you are pushing a range of services, ensure the product or service you are cross-selling is relevant to the original product, and offers value to the customer. If you go into a butchers and the butcher keeps trying to sell you his motorbike, chances are you’ll leave – by confusing your customers, they are likely to do the same.
- Don’t be too Pushy – Sales professionals know it’s a bad idea to push upselling too hard, especially after the client has clearly dismissed the idea. It’s better to have a sale without upselling than no sale at all.
- Bundle your Products – Everyone loves a deal. Bundling products together at a discounted rate is a common tactic used by salesmen to get more products out the door.
Ensure your bundle makes sense, is cohesive, and not just a random bunch of unrelated products. Bundling products usually works much better when the products are related, or have some kind of synergy for the client’s benefit.
- Keep it Customer-Focused – Remember, unless you’ve got Richard Branson and Warren Buffet knocking at your door, your customer has a budget. There’s no point trying to sell someone an Aston Martin if they are clearly in the market for a Ford – as a general rule, the cost of an upsell should never exceed more than 25% of the original purchases’ value.
It’s worth remembering that, when done right, up/cross selling is not just a marketing tactic to make your company more money. The correct upselling techniques will help the customer gain more value out of their products/services, and if the customer had a good experience they are more likely to return in the future – the goal here is to build stronger customer relationships.
Data from Forbes reveals that 90% of the customer value for B2B-focused businesses is actually attained after the first sale. By effectively working cross-selling and upselling into your sales strategy, partners can see some impressive returns by selling more to the customers already buying from you.
For more information on just how our resident channel experts can help streamline your channel and help boost profits, take a look at the wide range of channel services Gorilla has to offer.