· Misc

Upselling and Cross Selling in Today’s Economy

Upselling is a popular sales strategy in many different industries. Upselling encourages a customer to purchase a more expensive product, or to augment the original purchase with additional features. McDonalds offer of “supersizing” is a great example of upselling.

Cross-selling is a technique that entices a customer to supplement their initial purchase with products that compliment it.  Amazon contributes a 30% increase in sales to the addition of the additional banner for, “Customers who bought this product also bought”.  Another great example of cross selling would be the automobile industries warranty offered on a new car purchase.

No matter what you are selling, todays customers are looking for the best value.  Value can consist of many factors, price, product, quality or even just their personal relationship with the vendors. When done right upselling and cross selling helps to build a deeper relationship with your team members & your customers. After all who is the expert & knows your product lines better than your own front line team members.  We need to make sure we are listening to our customers wants and needs before we make suggestions.  If a customer is buying their university aged son a new laptop, they might be interested in Microsoft office or Adobe Pro, but likely not games. If the university student is purchasing the laptop – add ons like a sound system, or higher graphics card or even games may be of interest to the student. 

In the travel industry 48% of airline passengers and 59% of hotel guests said they were interested in upgrades or additional services, which means that without upselling or cross selling your team members are literally leaving money on the table. Why wouldn’t I want to upgrade to an airplane seat with more leg room on a 10 hour flight for only $25 more, or add a breakfast voucher for 2 to my hotel reservation for only $20 more when the regular cost is $49 dollars – what a deal!!  Everyone likes to feel they are getting the best “deal” for their hard earned money.

Upselling and cross selling in person is quite easy – just ask the question, show them the related product, tell them why they need it and follow the guests lead.  But what about phone sales?  What if your customer can not see the item and it is not something tangible They may not see why they would need or want that item.

Would you buy a sweater without seeing it?

What if I said to you: “I have a blue sweater for $10.00 or a red sweater for $20.00”, which would you buy? Without getting a description, you would be more likely to choose the least expensive one right? 

But what if I said: “I have 2 choices in sweaters for you: a super soft, beautiful red sweater that is hand woven by a very popular designer using exclusive llama wool, which I do have available in all sizes for only $20.00, or if you prefer, I have a scratchy blue one, one size fits all for $10.00.”  Which would you buy then?

Our goal is to capture every possible sale, and to help our customers choose the product that is going to suit their particular needs and wants. Describing your product and working to truly “paint” the best possible picture that you can before you give them the price may certainly lead to higher profits, and an increase in the customers perceived relationship with the provider.  Unfortunately, People will tend to go with whatever is cheaper or whichever choice they heard first – unless you can make it into a memorable visit or call.

Alethea Porter
Regional Training Account Manager
a.porter@signaturecanada.ca
Phone: 403-461-6590

Alethea Porter

We offer Canadian companies, personalized, sustainable and measurable business and training solutions which contribute to optimize income by developing sales and service skills dedicated to create memorable experiences.