Every single business can learn something from the phenomenal success of fast-food franchises over the past few decades. That's the power of up-selling.
It's all of the above and more, and you're leaving money on the table if you don't learn how to up-sell with grace and ease.
Sometimes the simplest methods are the best, and with sales, this is certainly true. The foundation of all effective sales is building a relationship. Without a strong relationship, your customer will not be inclined to buy a second time or to think of your company as one to recommend to friends and associates. Up-selling and cross-selling are not only methods but also tools for building strong relationships.
Up-selling involves more than working hard to understand client needs; it also requires a high-level blend of empathy for the customer's business challenges and staying alert for opportunities to move relationships forward in the sales process. Every time you talk to a client, you have an opportunity to serve him or her that you aren't taking advantage of. And many clients would buy more, but they don't know what you have to offer, they're not asked, or they're not asked in the right way.
So when and how do you present new ideas and offerings to clients? There truly is no right or wrong answer to this. It's about conversing with your clients all the time. It's about listening to them. It's about hearing what they aren't saying and what's between the lines of what they are saying. It's about asking questions. Salesmanship is more about listening and questioning than telling and selling. Up-selling simply takes this to a new level.
It is a fact that most customers have a higher level of satisfaction when they receive a high-quality product or service than they would ever have with a cheaper, lower-quality version. By listening to your customers and matching their needs with your best product or service for their circumstances, even if it's a higher-priced version than they originally wanted, you will not only increase the profit margin of your sale, but you will also boost your customers' satisfaction with your company. And we all know that a satisfied customer means a repeat customer — one who recommends your business to others.
So now we've established the importance of listening in building relationships with your customers. But what do you listen for? What questions should you be asking? And how do you know when it's the right time to present a new sales concept? The answer to these questions is too big to be addressed in this article, but here are a few hints:
- Don't simply sell them what they ask for — you may be not only leaving money on the table but also failing to provide your best service to the client. Find out what they are trying to accomplish (or the goal) with the purchase of the product or service. You may find out there is something else you have that fits their needs better.
- Each time you speak to your customers, gather information. Ask them questions about their business (or themselves). What do they see coming up for them in the next six/12/18 months? What challenges are they facing? What do they see as the biggest gap between where they are and where they want to be? Create a list of questions that are appropriate for your clients and will strike a chord with them.
- If you sell one line of products or services, but your company sells additional lines, ask them if they use these others. For example, if you sell life insurance, but a colleague in your company sells long-term care, ask your client if he or she sells/buys long-term care and, if so, whom he or she does that through now. If you sell to government, ask them who handles the commercial side. If you sell Toyotas, ask them who they know that would buy a Cadillac. You get the idea.
Your customers have money that they will willingly spend with you. Don't leave that money on the table!
About the Author
Linda Finkle, CEO of Incedo Group, works with innovative business leaders around the world who understand that business needs a new organizational-growth style. These innovative leaders know that powerful up-selling and cross-selling methods are key to profit growth and sales effectiveness.
If you're ready to power-boost your sales, make more money, and build stronger customer relationships, check out Linda's "Upselling Strategies" teleseminar at www.incedogroup.com/events_1.htm.