The role of upsellingLen Markidan of Groove suggests there are three distinct benefits to upselling customers:
- Upselling builds deeper customer relationships.
- Upselling to customers is easier than selling to new customers.
- Upselling increases Customer Life Value (CLV)
How upselling builds deeper customer relationshipsIf you’re earnest and fair-minded, it’s just plain helpful to show a customer a new and better option. It’s the added feature or more useful function that makes the product whole. And so, not bringing that extra to their attention might cost you some customer relationships.
Upselling to customers is easier than selling to new customersWriting for Forbes, Larry Myler quoted the adage, “Make new friends, but keep the old. One is silver, the other gold.” You all know the comparative cost of selling new prospects against selling current customers. But, Myler refers to a Bain & Company study showing, “60-80% of customers who describe themselves as satisfied do not go back to do more business with the company that initially satisfied them.” There’s a real problem in that disconnect.
Upselling increases Customer Life Value (CLV)I believe it’s fairly self-explanatory. And more than that, if you know what your customers are worth to you in the future, you know how to budget acquisition and retention costs.
Here’s 5 Tactics to increase upsells:
- Hone the frequency of your upsell attempts. You should balance not asking enough and asking too much. And, this differs from customer to customer.
Remember: upselling means adding value for the customer.You know that message at the bottom of an Amazon purchase telling you that other people who have made this purchase have also looked at. Yours is the same upsell opportunity. That is, your company has already made the sale by making them a customer, and so, you need only to suggest the choices that could be a great fit.
- Suggest a DIY. You can upsell if you suggest what the customer might do or have done to add the same feature.
Remember: it takes a good listener, too.Your best customer relationship is a mutual experience. You must listen well enough to hear the resistance in the customer’s voice. As you’ll learn, there’s a bit of a game to it. Customers expect you to push as much as they will let you, and no more. It’s a ritual, and people learn ritual through practice.
- Build trust and rapport. Any customer needs to believe you have their best personal interest at heart.
- Rapport is a two-way street. The word “rapport” describes a mutual relationship, where CSMs and customers both bring something to the connection.
Remember. Few things build rapport like good listening.
- Mirror the customer. You move forward if you can match the customer’s style. You acknowledge and confirm the customer when you repeat their key phrases, summarize their points, and agree with their objectives. You don’t want to insult them by mimicking them, but with active listening skills, you can reflect the pacing of their speech, laugh at their jokes, or dismiss the small talk.
Remember: adjust yourself to match your customer.
- Trust makes upsells. Relationships take time to build. But, if you work at them, they become enduring and productive. But, from the customer’s point of view, the trust that sustains depends on your keeping your commitments. This requires you to form strong relationships with your support people. For example, you dare not promise a delivery date your Ops people cannot meet. Their job is to meet and exceed your expectations because Ops need customers as much as you.
Remember: building a good support team will enable you to create trust between you and your customer.
- Have your client’s best interests at heart.
Remember: everyone has accountability for your success.That’s actually the easier part. The harder part, if you weren’t born this way, is to empathize with your customers. Learn how to do that and you’ll become the upsell king.
Remember: learning to empathize with your customers will be the best thing you can do for yourself and your organization
- Find out where else the customer spends money. You should know if the customer spends on products and services that could be better off with you.
- Know your market well. It’s your job to know the competition. In a world where everyone can comparative shop online, you risk losing customers to the competition. You must position yourself to show the difference you, your product, and your relationship make.
- Tell stories. Good relationships let you review testimonials and case studies. Any CSM should be able to make a better presentation than an online catalog.
- Work smarter. Working customers well takes creativity. You must study, prepare, and write different approaches on different products to different customer segments. It takes work, but it pays off.