How to upsell
in a tough economy
If you know what your customers value, you can create offerings to meet their needs...
Businesses need to think outside the box to generate leads,
whether you are in a competitive industry, a tough economy,
or a combination of the two. And remember – new business
doesn't have to come from new clients; there are ways to
provide maximum value to existing customers and increase
your revenue.But before we look at ways to upsell, let's unpack what it means,
and how it differs from cross-selling. Upselling is the practice
of encouraging customers to buy a higher-end product or
service than the one in question; whereas cross-selling tempts
customers to buy related products that satisfy additional,
complementary needs.A simple example of cross-selling is when you order a quarter
chicken from Nando's, and they ask whether you want a side or
drink with it. Chips, wedges and a side salad all complement the
meal. The same applies when you're checking out of an online
store; the shop often lists similar or complementary products
that you may add to your cart, or buy next time.Consider American airline, JetBlue's "Even More Space" initiative,
which allows passengers to buy seats with more legroom. This
upsell was projected to net JetBlue $190 million in additional
revenue in 2014 (compared to $45 million in 2008, when it first
launched). On a broader scale, one can look at statistics from
the travel industry: 48% of airline passengers and 59% of hotel
guests are interested in upgrades and additional services, which
means that you could be leaving money on the table if you
neglect to research upsell options in your industry.The key to success in both cases is to understand what your
customers value and then respond with products, services or
features that meet those needs.Build strong relationships
Long-standing relationships and loyal clients are worth gold.
Nurture them, and never side-line dedicated customers when
you are busy with new business development. Constantly over-
deliver and exceed expectations. Make yourself 'irreplaceable'.Identify clients' needs
Don't presume you know what your customers want or need –
ask them. You need to understand their hopes, dreams, fears and
challenges. To do this, set up one-on-one calls; catch up over
coffee; or email them a quick survey to complete.Also be aware and find out what else your clients' and your
competitors are doing to address these needs. Find solutions (or
be the solution) for these anticipated problems.Define your offering
Next up, figure out how you can help them achieve their goalsMARKETINGEmma Donovan