If growth is your primary goal, then you need to be analysing how to sell more to your existing customers. Stop trying to find elusive new customers, and focus on what is already right in front of your face.
Why? Well it is so much easier to sell to existing customers than to acquire new ones. According to Marketing Metrics, the probability of selling to an existing customer is 60 to 70 percent, while the likelihood you’ll sell to a new prospect is just 5 to 20 percent. SAY WHAT!! The statistics don’t lie people.
Two common sales strategies are either “upselling” or “cross selling”. Same same but different and we feel most business owners should have at least one of those strategies in play (if not both).
Tips for cross-selling
Bundle your services. So if you already have people buying from you then, whilst you are at it, why not sell them something else which goes with their existing order? Either a similar product, a top up product, and add on to their product, something to complete their order. If they are already wanting to buy one thing from you, you need to dangle the carrot of what other products would work well together.
Whilst this is obvious for a product based business (think…customer wants to buy a printer, then you need to be cross selling them to also buy toner and paper etc), for a service based business this can be a bit more tricky. Doable, but tricky.
You generally get the best results with cross-selling when a complementary item is offered at a much lower price point.
Would you like fries with that is the perfect example. I mean have you even been to McDonals and they haven’t tried to sell you something else?
You will make it even easier for your customers to buy more from you by offering a discount when they purchase two items at the same time.
“Would you like to save 10% on printer paper/toner with your printer purchase today?” is an offer plenty of customers will find hard to refuse. Don’t expect your customers will come back to buy that second item later on. Put it in front of their face and if done right, you are doing them a favour – you are giving them convenience.
Tips for upselling
When you upsell to a customer, you’re asking them to consider a higher-priced upgrade during a sales transaction. Now this is not to get confused with selling them something they don’t need. We are not trying to turn into an icky sales person ripping off the customer.
Think of an upsell as a recommendation: you’re endorsing the best version of a product or service your customer is already planning to buy.
It is usually much easier to upsell a customer than to cross-sell. Paying more for the premier option is a smaller stretch for a customer than deciding to buy something extra that wasn’t initially part of the plan.
So for example if a client comes to us and just wants help with payroll, could we upsell them to a complete bookkeeping package with payroll included. No it was not what the customer thought they wanted, but for a bit extra, they get a whole lot more.
Whenever you’re telling your customers about a product’s features, suggest the benefits of the premier option. Even if they decide not to buy at the highest price point now, they might keep it in mind for next time.
Upselling often happens naturally in sales when the focus is on the product that would best meet your customer’s needs rather than starting with price. Explain the differences between two or three options, providing all the info your customers need to make the best choice to meet their needs.
If you are not revisiting your customers, and reviewing their purchase needs, you are missing out on a revenue stream. Go back to those customers and encourage them to buy from you again. If they loved you and your customer service the first time, it should be a no brainer.
As you integrate upselling and cross-selling into your sales strategy, always keep your ideal customers and their needs top of mind. This is not about you (even though you benefit), it is ensuring you are giving valuable options to the customer based on their needs.
By being knowledgeable about the problems your customers most want to solve and able to provide honest, helpful advice – your customers will grow to trust you and your recommendations.