New and existing business owners sometimes find it challenging to make their potential customers interested in their products and services. There is absolutely nothing wrong with having a bestselling product or service. However, to maximize revenue, businesses have found clever techniques to draw the customer’s attention to a broader selection of offerings. Market metrics put the odds of making a sale at about 70 % for existing customers and only 5-20% for new prospects. These techniques help businesses capitalize on existing customers. Below are three quick ways you can sell more of your products and services.
1. Upselling
Upselling is a sales technique where a seller offers a customer a more expensive version of a product. The seller may also offer upgrades or add-ons that provide additional functionality to the existing product. Examples include phones with higher memory, premium or higher tier subscription plans etc.
2. Cross-selling
This technique encourages the customer to purchase products related to the one the customer has or is buying. Cross-selling is done through recommendations. Certain types of products are inter-related or are frequently bought together. For example, a mouse and keyboard may be recommended to a customer who just purchased a desktop computer.
3. Sale after-sale
This tactic involves offering special deals to the customer after a sale. This tactic aims to incentivize the customer to make more purchases and thereby raise revenue. It is mostly executed through the use of one-time deals, discounts etc. For example, a business offers customers a 10% discount on their next purchase at checkout.
Advantages of after-sale techniques
Boost in revenue
It doesn’t take a genius to figure out that an effective after-sale strategy can boost revenue, and hence, profits. Amazon has reported that cross-selling and up-selling make up as much as 35% of their income. Product recommendations make up 10 to 30% of eCommerce site revenues.
Increased Customer Retention
Customers buy products to meet various needs and solve problems. However, customers are not always the best at determining the exact product and service required to meet their needs. Offering options to customers increases retention by offering choices the customer may not have known existed. As Steve Jobs said, “people don’t know what they want until you show it to them.”
Creates a better customer experience
Add–on techniques help foster a sense of personalization in the mind of the customer. They plant the idea of win-win situations in the customer. Customers are more likely to revisit businesses that provide enhanced value. This translates to improved customer satisfaction and more revenue for your business.
Things to note
- The use of add-on services must be measured. Businesses must employ proper techniques to prevent frustration on the part of the customer. Avoid “hard-selling” and stick to making quality recommendations. Customers can feel like they’re being ripped off
- For after-sale techniques to be properly utilized, the business owner must ensure that sales representatives have proper knowledge of all the products (including the premium offerings). Recommending a shovel to someone who came to buy a car is unlikely to lead to a successful sale.
- Upselling is not a “dirty” tactic. Focusing on providing excellent products to your customer will lead to happier customers and increased revenue.
- It is easier to upsell to existing customers than to acquire new ones.
Actionable Tips
Online Platforms
- Before purchase: display recommendations at the bottom of the product page or using sidebars.
- After purchase: use pop-ups at checkout and shopping cart pages to display recommendations.
- Promote products with strong reviews.
In-person Sales
- Make relevant suggestions by answering the “Why” of a product.
- Do not bombard the customer with too many options to avoid analysis paralysis.
General Tips
- Do not hard sell when upselling. Think of your approach as gentle nudges and suggestions.
- Offer bundles to simplify the decision-making process for the customer.
- Use price anchoring.
- Be helpful, not aggressive.
Need help integrating sales strategies in your business? Contact Catalyst Business Consult on +234 816 272 6997.
