Selling more to existing
customers
One of
the best - and easiest - ways to increase your revenue and profitability is to
sell more to your existing customers. Many customers only know about the
products they have bought from you. Simply telling your customers about all the
products in your range can bring in more business. Having the “Line Card”
conversation can be very useful.
Cross-selling
and up-selling is all about relevance. Look at what your customers have bought
before and offer them other relevant goods and services that might be useful.
They will see this as good customer care, rather than an intrusive sales pitch.
Timing is
everything. Where possible, focus on cross-selling and up-selling at the point
of sale when customers are ready to buy. Offering upgrades, special deals and
free gifts (such as three for two) is a great way to convince customers to
spend a little more.
How to approach existing customers
Never
underestimate the importance of your existing satisfied customers. It costs
less to sell to them than it does to find new business. What's more, they are
loyal, they tell you what you are doing right and wrong, they recommend you to
their friends and, compared to new customers, they are less price-sensitive.
Selling
to existing customers is quite different to approaching new prospects. You don't
need to establish your reputation, skills or the quality of your products. The
customer is already convinced. The fact that you're telling them about other
useful products or services shows that you understand their needs and care about their satisfaction.
Your
sales approach should reflect the fact that you already have a good
relationship. Listen to your customers and let them give you feedback before
you make your pitch. As long as you tell your customers about something that's
appropriate to them, they will appreciate the offer.
Don't
assume your customers know your products as well as you do. Most people are
focused on one thing when they make a purchase. Has a customer ever said to you
'I didn't know you did that'? Customers are often unaware of everything that a
business can provide.
Take
advantage of every customer touch point to show them what you can offer as part
of your routine customer-care
processes. You can also send newsletters and emails telling them
about new products and special offers. After a sale, a courtesy call is a good
opportunity to offer other goods and services. You can send reminders when
services or check-ups are due. When shipping a product to a customer, include a
flyer highlighting other items which they might be interested in.
How to cross-sell
Cross-selling
is an established sales technique that works. In a chemist, you'll find
mouthwash, dental floss and toothpaste next to the toothbrushes. On websites
like Amazon, you'll find other recommendations next to the book you are buying.
Maximise
the potential for cross-selling by positioning related items together, whether
in your shop, on your website or in your brochure. Educate shoppers on the
depth and variety of what your business offers. At the same time, ensure your
employees are trained in cross-selling techniques, based on offering customers
relevant products and services.
Incentives
can be the best way to achieve extra sales and it's very effective to bundle
together related products in a package deal. If you run a carpet-cleaning
business, don't forget to mention that you clean curtains too. You can also use
endorsement to make a sale - recommendations from experts or other customers
can convince customers to add more products to their basket.
How to up-sell
Getting
customers to buy a more expensive product can be difficult. However, by
encouraging your customers to spend a little more, you can significantly boost
your sales.
There are
two main ways to up-sell. The first method involves an in-depth understanding
of your customer's requirements. The second approach is based on incentives and
rewards for spending more. If you can combine both, you have a good chance of
successfully up-selling.
Take a
car sales pitch, for example. A customer comes in and is sure about the model
they want to buy. The sales person asks a series of questions to find out more
about their requirements. Then they show the customer the original model and a
more expensive model that gives them everything they want. The customer likes
the more expensive car but is concerned about the price. The sales person
offers a discount and the deal is sealed.
In a solution sale it can be very easy to add optional items to your sale!
