At most of the places we shop today, employees often ask customers if they need anything else with their order. It could be the clerk at the deli counter asking you if you would like any cheese with your order, the server at a restaurant asking if you want to start with an appetizer, or the now famous, “would you like fries with that.” Why is this? Business owners have determined that they only have a finite number of customers. Therefore, they must maximize the potential of each customer. Retailers often track the ‘average sale;’ whereas, in the restaurant businesses, managers look at the ‘average check size.’ Managers track that number to be sure they are achieving their sales goals.
Whether you’re in customer service, management or sales, you increase your value to an organization by retaining valuable customers. Research shows that the more products and services your customers use, the more likely they will remain your customers. But how do you sell additional or higher value products or services without feeling pushy?
How do you give more value to customers? Additionally, how do you recognize this is good for them, for you, and for your company? Cross and up selling often provide a win-win situation for everyone. This allows you to work with proven tools to open doors for additional business and learn how to sell without feeling pushy.
You need to develop a plan with your managers on ways to increase each sale. Listed below are the concepts of what this plan should contain.
- Offer additional items that add value for the customer
- Convince the customer that you are supporting their original purchases
- Move the buying decision to a higher level, more valuable solution
- Create a value map to increase the quantity of the sale
- Raise the quality of the solution and help customers save time or improve efficiency
- Follow a consistent system of gathering information, opening the door to the solution, presenting added value, and confirming needs
Now that you read the concepts above, you are probably asking questions on how that can be implemented in your business. Below are some real-world solutions:
- In a coffee shop a customer asks a clerk, Can I please have a cop of coffee? You ask; a Large? Most likely the customer will say OK. If you responded, a small, medium or large, most likely the customer would have responded with a medium please. In this process you moved the sale up without being pushy.
- In an auto parts store a customer comes in for parts to replace the brakes on their car. The counterman notices the customer does not ask for any brake fluid. Knowing brake fluid is needed when replacing the brakes, the counterman makes the suggestion. The customer could respond with, I have some at home. Or, most likely the customer will say yes and thank him for the suggestion. Again, not pushy and you are actually offering better customer service because there is nothing worse than starting a job and not having all of the required parts.
Cross or Up Selling is not limited to restaurants, retailers, or wholesalers. Contractors can use the process as well. In most trades, it is very easy to sell a better product than the customer may have requested. Remember in many cases the labor component of the cost would be the same. It could be as easy as showing the value of paying a little more for a roof that has a longer warranty. The same would be true for a plumber installing a new water heater. The point to remember is the cross or up sell must add value to the customer. If they are planning on moving in 5 years they probably don’t want to spend the extra money on longer life products, but those still could be added features when they are selling the home.
Implementing a plan to improve your Cross or Up Selling can easily add ten to fifteen percent to your sales!
At Cogent Analytics, we never stop looking for ways to improve your business and neither should you. So, check out some of our other posts for helpful business information: