“I wanna have more, more, more, more, more, more and more”…..
Trust us on this. It’s not just Kpop sensation Twice or half-starved Dickensian orphans that crave ‘some more.
Everyone irrespective of their bank balance, MBTI type, or social media status, covets just a teensy bit more of the good things in life.
Nothing compares to seeing my favorite chocolate chip cookies peeking from beside the coffee mug. Can I enjoy my coffee without the cookies? Sure, but the presence of those spheres of temptation does make coffee time more memorable. A lethal combination of coffee and cookie combinations customized on the preferences of the visitor ( black coffee with sugar (guilt)-free cookies or iced mocha latte with mint-chocolate chip cookies for instance ) may just be the thing that would make coffee addicts like yours truly coming back for more to your café.
People are indeed looking for more of the good things in life. However, the challenge is to make them admit it.
This brings us to the subject of Upselling. Workable knowledge of Upselling techniques can drive in more revenue and help you build 3X stronger relationships with your customer.
What is Upselling?
Upselling is a sales strategy aimed at encouraging customers to purchase a more sophisticated or premium version of a particular item or other add-ons. Many retail stores and e-commerce websites use upselling and cross-selling tactics to boost sales volumes.
Why Teach Your Retail Staff To Upsell?
It has 60-70% more chances of lead conversion
It is easier to convince a loyal customer who trusts your product/services to make an additional purchase or two than impress a new prospect who is unfamiliar with your brand. Old customers are more likely to make more orders so ignoring upselling opportunities= fewer profits.
Helps Create Customer Relationships That Last
Upselling does have a negative connotation. However, it need not be so. If your client feels that they have acquired something more useful or valuable for the added purchase, they will not begrudge having to shell out more.
Increases Customer Lifetime Value
Customer Life Value or CLV helps you identify your most prolific or profitable clients. If a brand has a high amount of profitable customers it can have a steady stream of profit without having to incur a huge expense. Effective upselling can help transform many of the current customers into profitable ones.
A Marketing Strategy with High ROI
No extra cost is needed to come up with upselling tactics. However, as we have pointed out before the chances of it working is more than 70% as it involves customers who already like what you have on offer. In comparison, traditional marketing tactics geared toward attracting new clientele may have a low ROI (Return on Investment) as you have no idea if it will indeed work. Prospects will most likely be skeptical of new brands and your marketing campaign may go to waste.
Helps Retaining Customers
According to recent research conducted by Bain & Company, as little as a 5% increase in customer retention can boost the profitability of your company anywhere from 25% to 95%.
Customers who feel that you are looking after their requirements through relevant products will be more likely to stick to your brand. Moreover upselling often empowers the clients by giving them more choices. Most people don’t want to hop from one shop to another for a single product.
You can win clients over by suggesting they can find what they want by purchasing add-ons. This may lead to satisfied clients and positive reviews. Great product and customer service reviews are a great WOM (Word of Mouth) strategy. This way your brand reputation also grows.
5 Ways Your Retail Staff Can Excel in Upselling
Ensure Their Product Knowledge Is Exemplary
Up skilling, tactics can fall flat if the customer rep comes across as ignorant or unauthentic. A client will only agree to purchase add-ons or go for an upgraded version if they feel that adds value. Informed sales reps convert more leads (123% more) than less knowledgeable peers as per research led by Wharton Business School as customers are more likely to trust the words of an expert.
Sales staff and customer service reps have to educate the customer on why or how add-ons will enhance the experience. They also need to be thoroughly informed about your product catalog. This requires in-depth product knowledge.
Pre-Arrange Complementary Combos
Upselling becomes easier if you know what the customers like. Staff should arrange complementary combinations by analyzing the purchase history of clients and conducting research on what complementary/supportive products can go with a specific item.
For example, if a client is here to buy a grill oven, your staff should also have a handful of skewers ready. If someone is interested in buying raw pasta, ask if they want to look into your collection of extra-virgin olive oil.
Be Ready To Demonstrate Value
A customer may initially be wary that you are trying to sell them something they don’t need to make a quick buck. The way to assure them is to assure that they are making an informed purchase. This can be done through case studies, testimonials, and ROI calculations.
Offer Rewards
Everyone wants a prize for their effort. A loyal customer who has agreed to extend their budget at your suggestion deserves a reward. This reward can be in form of a discount, free delivery, etc.
Encourage Staff to Follow Up
Many upselling opportunities come after the customer has made a satisfactory purchase. Follow-ups not only strengthen customer relationships but also provide some golden opportunities to make upselling suggestions.