Increase Your Sales without Stress by Cross-Selling and Up-Selling
How would you feel if you found out that you can dramatically increase your profit with minimal stress through cross-selling and up-selling? Two business growth strategies that are effortless, simple and actionable at no cost at all? Over the moon right?
This is because it is ten times easier and cheaper to sell to an existing client, than it is to get a new one through the door.
If you are a coach, consultant, realtor, or professional service business owner of any kind, and you desire what I said above… then this post is for you. I will be showing you how to leverage cross-selling and up-selling as strategies to generate revenue increase in your business.
The beautiful thing about this is that, you don’t need to go for special trainings or get any certifications before they can work for you. You can apply them on the go and see their effect immediately.
Cross-selling and up-selling are two marketing and business strategies that lots of business owners and professional service providers don’t think much of. But the smart ones have discovered these hacks and tapped into it to get ahead. It is no surprise as we see them not only give their clients a unique buying experience, but they smile to the bank consistently.
These strategies are dynamic as they can fit across all business spheres. Whether you’re in the coaching business, consulting, etc. You can apply these strategies.
But can you apply strategies you don’t understand into your business? Hence, let’s understand what cross-selling and up-selling is all about.
What Is Cross-selling?
In business, cross-selling is the offering of additional complimentary services or products to clients, which makes then purchase more than they initially set out to.
In other words, this is getting your clients to buy more than they planned by throwing in something complementary.
I cannot talk about this without clarifying my point with some examples. Now, has a person ever asked you whether you wanted some chicken with those fries? Check out places like McDonalds, this a strategy they adopted over the years and it worked and still does for them.
The clients are offered like-minded products, such as a combination of chicken and chips which I mentioned earlier. This makes them increase their spending, which in turn increases revenue through profit on each order.
Same is the situation in coaching business and every other business out there. For instance, as a realtor, you could sell a house and then propose an insurance package to them. Every type of home needs an insurance against thefts, fire, flood and the likes.
So your proposal is a great idea, because they get to spend more for what they need. All you need to do is have an insurance firm you work with on ground to put them through the process.
Think of every other business and you’d find ways to cross sell, with the possibility of clients saying “NO” very unlikely. Getting your clients to raise their original purchase can add about 30% or more profits to your business immediately… or you can apply the tactics of upselling.
Let’s Talk About Upselling
This strategy is similar to cross-selling, but there is a huge difference between both tactics. Cross-selling as described above is about offering complementary or related services/products to what the client is buying.
Up-selling on the other hand is offering the buyer an increase in the same products or services that they are buying. It is the ability to convince the buyer to buy more of the same product than they intended, for a gain of course. It could be at a huge discount rate at the point of sale.
Citing a business coach as example, he can organize a one day workshop for their clients. The business coach can go ahead to extend the duration to about two or three days at 25% discount. This is a way to upsell your services.
Another example is one which happened to me. I had a craving for ice cream and three of my friends decided to tag along. Luckily for me, cold stone ice cream was up-selling. They told me to buy one and get another for half the price. Since we were four in total, I bought two cups of ice cream and got two extra cups for half the normal price. Win-win!
Let us also look at an instance of when I went to get a set of pans from the mall. At checkout point, I was offered another set for 30% discount, and I thought… more pots will make for long term usage. Who knows how much these will cost in two years’ time, why not buy it now?
I bought more than what I planned for on the same products. They increased their sales and I got more value for my money. This is a win-win for the buyer and the seller. But the challenge here is, when is it right to cross-sell or up-sell?
How Can You Determine If To Upsell Or Cross Sell?
Knowing when it is right to up-sell or cross-sell can do great for your business. And I will be putting you through on how to determine that in a bit. The sound knowledge of your business and your creativity will help you determine this.
First of all, take out time to ruminate over what else your clients will need to go with whatever they are buying from you. What is that one thing that will either complement the services that you render to your clients, or make them purchase more of the same item?
So, instead of always giving clients discounts on your primary products that could take away all your profits… you can get them to buy additional products than they intended at the point of purchase. This strategy is potent and can suck your client in.
But this is provided that you are offering your clients what will be useful to them alongside their original purchase, and not what they don’t need.
The main aim of cross-selling and up-selling is to bring your clients to the realization that they need more, or something else to go along with their purchase. Something that they would otherwise not have thought of. Get into the buying mood of your clients, offer up some incentives and watch your clients nod in approval.
Factor In The Peculiarity Of Your Business
Every business is peculiar and so are the methods. While it will be easy for some businesses to up-sell, others may have to stick with cross-selling. Take for instance, a clothing business. They can up-sell, because clothes are never enough.
A person can have more than five dozens of shirts and want more. But a realtor may have to cross-sell. An average person can only buy one house at a time. What such client needs is an additional service that complements the house they bought.
Hence, think of what you can offer to clients at the point of purchase as it applies to your business. A coach may either cross-sell or up-sell, depending on the niche they chose. Or insurance packages
How Do You Apply Cross-selling And Up-selling?
- For repeat businesses like groceries, cosmetics, clothing, coaching, and the likes, up-selling is the way to go. Get the clients to buy more than they intended to at the point of purchase.
- There are other businesses which are single purchase types. A person buys and doesn’t buy another in a very long time. This is in the case of a car dealer, plumbers, computer sales, etc. in this situation, cross-selling is the best idea.
You can introduce the best car oils or insurance packages to your client if you’re a car dealer, etc. This is because very car needs an insurance, more than anything
- If the products or services you offer is a random or infrequent one, such as a realtor, attorney, or health service, then you can cross sell and upsell. Give clients something that will complement what they bought from you. You can also get clients to buy more of the same products.
Your business is full of endless cross-selling and up-selling opportunities. It boils down to having an intimate knowledge of your business and leveraging it to make more profit immediately. So, with the ideas of how to cross-sell and up-sell firmly in hand, you will find below some salient questions to guide your decisions.
Salient Questions To Help Identify Cross-selling And Upselling Opportunities
The following are questions you should ask yourself before making a decision to up-sell or cross-sell.
- What are ideal products to offer clients to complement what they are purchasing?
- What are the ideal products that clients will need in excess at a given?
- Of what benefits are the complementary or additional products or services to the clients?
- How much does it cost you to cross-sell or up-sell and how much do you profit from cross-selling and/or up-selling?
- How much is the profit of up-selling or cross-selling per transaction?
- What is the risk management plan for cross-sell or up-sell offers?
My final thoughts…
Cross-selling and up-selling are great opportunities to bring more profit into your business. The most important thing is to know which applies and how it applies to your business. Also consider some salient questions that will guide you through your decision making of whether to cross-sell or up-sell.
Here is where Clients Oasis come in, to give you their support if you need one.
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