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Want Fries with Your
Burger? The Fine Art of the Upsell
Restaurants do it beautifully. “Did you leave any room for dessert or
coffee?”
At least one car rental company my client just visited did
it obnoxiously. “Did you want insurance,
gas, a GPS, or a toddler seat? Who will be responsible for the car if something
happens to it? Oh by the way, it’s extra now for the steering wheel. And if you want it to go in reverse from 4PM
to 5PM, that’s an extra charge, too.”
The All-Important
Upsell
How does your company rate when it comes to the
all-important upsell? Is it smooth like
a restaurant waitress who smiles while she delivers her line? Or could it be
improved?
While you don’t want to anger your current customer, you do
want to fully serve their needs in a way that helps them and boosts your
revenue. Here are five tips to perfect
and track the all-important upsell.
1. Make sure you are upselling.
Once people have chosen to do business with you, you have
their trust. They’ll want to know what
else you have to offer. Sometimes we
may feel like we’re bugging the client, but it’s really cheating your client
not to let them know what else you can help them with.
Don’t be afraid to add upselling to your communications
with your client in a number of places. If you don’t upsell, you’re leaving precious money on the table, and
most of all, you’re under serving your clients. A small percentage of your customers will always purchase what you
suggest.
2. Get
the timing right.
Add an upsell option immediately after a prospect has
landed in your funnel. For example, if
they signed up for your free newsletter, offer them your entry product or
service on the landing, on your Thank You
page or in your first welcome email to them.
If your product or service is relatively small in dollars,
add an upsell option immediately after any small purchases. Do this right after
the shopping cart has processed their order. Some carts have an automatic feature built in to do this; all you have
to do is select the product you think the buyer would like.
Don’t upsell right after you’ve agreed on a large proposal,
but do upsell at the end of that engagement.
If you meet a client periodically, such as monthly or
quarterly, always schedule the next appointment before you leave if
possible.
3. Get
the product right.
Gradually move your client up in price. If they purchase something for $100, offer
them something for $500, but not for $5,000. If they buy a $5,000 contract, they might be ready for a $10,000 service
next year.
4. Create
the right language.
Never put your customer in a position where they feel
forced to make a decision or feel wrong for not taking the service, like my
client did with the rent car. (Try your
upsell line on your spouse or friend before you try it on a prospect to be sure
of this.) Use language that is
benefit-focused when you explain the options, and always let them know that you
appreciate their business and the decision is theirs to make.
5. Package your offerings right in the first
place.
Services that should be included in the base price, well,
should be included in your base price. Don’t confuse upselling with what should have been in your package in
the first place. That’s how most
customers feel cheated during upsells.
Tracking the Upsell
There are a couple of ways you can track your upsell
results. If you offer every client who
bought “x” the “y” product, you can compute a conversion ratio based on your
sales of x and y, assuming you keep them in separate buckets in your accounting
system. You can do that for every upsell
you have at the service line or product line level.
Another more general way to track upsells is to compute
revenue per client on a monthly basis and see if it’s on the upswing. If you need help calculating either of these
methods or setting up your services and products correctly to create the upsell
tracking you want, please let us know how we can help.
Upselling is a vital part of every business. Fine-tune your processes with these tips and
watch your sales increase and your clients become better served and more loyal.
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