As an entrepreneur, understanding the importance of the relationship with your clients and customers is important. To have a constant value for your business has to be followed to keep your loyal customer base intact. A challenge that every Entrepreneur faces is Getting new customers and retaining loyal customers. Being consistent, keeping your values constant, and having a good relationship with your customers can be key to solving this challenge. What if you have to upsell your current customer base? How can an entrepreneur do that and retain the existing customer base? Let us deep dive into what upselling is and how to effectively upsell to your current customer base.
Upselling is getting your customer to make a higher-cost purchase than they had already planned. Imagine that a salesperson in your team made a sale. It does not end here. Making a sale is one step but being ready for your next move is important. This is where upselling comes into play. It is a sales technique equipped by salespeople to make customers purchase more expensive items or upgrades to gain more profits. Research suggests that the probability of selling to a new prospect is 5-10%. Selling to an existing customer is 60-70%! Here are some ways you can upsell to your existing customers.
Make a connection to your customer’s original purchase.
Now here’s a story that everyone can easily relate to. If you have visited a fast-food chain, for example, McDonald’s, you would have noticed the cashier trying to sell you some coke and fries to your initial order of a burger. Mostly, since fries and coke go well with your order of a burger, the upsell that the cashier makes is related to the original purchase. A customer becomes a customer by the purchase they make. When they improvise on their buyings, they become an upsell customer. Customers who are interested in buying a spoon might end up buying a fork and knife set as well. If a customer is interested in buying a knife, try selling them a knife sharpener. If you have a business of software, sell updates and premium support. Yes, we are looking at you, Microsoft.
Convince Customers to upsell themselves.
A good salesperson not only uses the best of their selling techniques but also clubs their products widely. This would make the customer consider buying multiple products together. In this manner, you would be making a massive effort since the customer would decide to go for a clubbed purchase. The more successful upsells are those when the customer realizes their own need to make the purchase.
Make your upsell convincing.
If your upsell is too expensive, the customer would immediately register it as a sales gimmick. The customer always tries to rationalize the price. It makes them feel smart. A great way to do this would be to add discounts to the upsell that you try to make. If a customer is purchasing a product for 10 dollars, adding another product for 50% off would encourage them to buy that as well. For instance, if a customer is interested in buying a shirt, they would probably buy pants as well if it has a discount of 50% off. Businesses also use gift wrapping and free shipping as an effective upselling strategy. Making convincing payment plans is also a good strategy to convince customers for an upsell. It gives them an illusion of paying lower if they are paying 600$ over six months. A limited-edition offer is also a good way to increase the value of your product for an effective upsell.
Initiate an upsell after the original purchase.
Do not burden a customer with an upsell before they have completed their checkout for the initial purchase. Added or increased prices are a major cause for customers to abandon their shopping cart during purchase. Try this instead. Take steps to remember the payment information of your customers during their second purchase. You can also contact the customer and post their purchase via email. Email marketing is very effective to upsell a product post-purchase. Emails also provide scope to offer additional discounts and offer on upgraded products and services.
Sell products that add value and solve problems.
Think of the new challenges and problems that your product can be used to solve. Think carefully about the product you sell and try to understand the problem it introduces. Use your product as the solution for the problem that it created. It is important to note here that people act on solutions and not on features of a product. For instance, if a customer buys advanced software, it would be helpful to sell training courses for the same.
Adding value and a mission to your product that resonates with your customer base can also help increase loyalty in the long run. A philosophy behind a product can nurture an already existing customer base and make them loyal fans of the product or brand. For example, some people fight over Apple and Samsung, Nike and Adidas, etc. If we take Nike and Adidas as examples, both sell shoes. Although, the philosophy behind the brand makes the difference. Nike talks about impulse and just doing what you feel like with their “Just do it!” mentality. Adidas, on the other hand, believes in hard work and excellence. They believe in winners with their “impossible is nothing” mindset.
Upselling is a skill that every salesperson or an entrepreneur can make use of. It can help you achieve your goal of creating a loyal and successful customer base. Customers for every brand can be unique. Some tactics as mentioned above can be foolproof. If you have a BIG IDEA and lack the direction and resources to bring it to life, look no further. With a great tech team and a proven track record, Projest 10K is honored to hear your ideas and partner with you in hopes to make an impact on the world. Visit our website for more information.