How do you increase the value of the offer you are advertising? Upselling. If you have ever been in contact with a customer service representative, you have probably experienced a very bad form of upselling. Cable companies, for example, are notorious for trying to sell you irrelevant packages even as you’re trying to end your contract!
When approaching your own strategy for upselling, you may find yourself on a tightrope with customers. You don’t want to have the same bad form cable companies do. Here’s some advice to help keep you from falling:
Know your customer
Learning about your customers and listening to them is essential when upselling your offer. Customers will often divulge important information about their needs, but only if you hear them and are able to cater to those needs. But be careful, according to a recent survey, 40% of customers worldwide stated they get annoyed when an employee “talks to me about things other than the problem I am trying to resolve, for example upselling or cross-selling.”
Upselling can be a great way to increase your customer base, but giving your customer a deluge of services/products will alienate them. Simply asking your customers about their needs can take you a long ways.
Use a loss leader
While this may not apply to every advertiser as it depends on the types of services/products you are providing, it is a very efficient way of gaining a client base. A loss leader is a pricing strategy wherein “leader” refers to any popular article and a product is sold at a price lower than its market cost; this serves to stimulate other sales of more profitable goods or services. It can open the door to upselling by attracting your customers with a discount on a less profitable service. Your upsell would then be predetermined complimentary to the loss leader.
Offer a lifetime value
Today, customers are overwhelmed with millions of choices from lip balm to computers. To help them navigate this jungle, they often turn to a company they can rely on for a particular service/product. Offering them a lifetime value will keep them coming back to your company. However, customers must see the value in what you are upselling in the form of convenience, prestige or something more physically attainable. The best way to do this? Help the customer focus on the bigger picture.
Regardless of which of the above strategies you use in your upselling, make sure that you’re at least using the technique of upselling–after all, it’s no secret that the fastest and easiest way for a business to increase sales is by taking selling more goods and services to people who already know, like, and trust the brand.