If you want to increase your profits, you’re going to want to consider upselling and cross-selling to your customers.
Did you know that the probability of selling to existing customers is around 60% to 70%? On the other hand, the probability of selling to a new customer is just 5% to 20%. When you consider these statistics, you can easily see why it’s important to try to utilize your existing customer base.
Having said that, there are some do’s and don’ts when it comes to upselling and cross-selling. Here, you’ll discover some of the best tips you can follow to ensure you’re doing it correctly.
Make Sure You Choose the Right Upsell
There are a lot of different upsell products you can offer to your customers. Therefore, you’re going to need to make sure you’re offering the right one.
A great tip is to consider adding customizable options. This allows the buyer to customize the product to fit their needs. They choose from a range of additional options, each of which will drive up the price. Customers love having the flexibility to do this.
Other upsell options include upgraded products, allowing customers to extend the amount of time they can use the digital product, and product protection offers.
Know Which Complementary Options the Customer Needs
You’re going to want to research so you know what complementary options each of your customers need. That way, you can let your sales team know which upsell products to offer along each part of the customer journey.
Take a look at the purchase history of your customers. Segment your customer base so you know which products attract which type of customer. Then, figure out what additional products each customer type would benefit from the most. By offering different upsell and cross-sell products to different customers, you’ll see much more lucrative results.
Provide Testimonials and Reviews
Something that can really help to sell your products is testimonials and reviews. If you’re offering an additional product, make sure you highlight the positives being said about it. If it’s already producing results for somebody else, this will make your customers think they need it too.
Show Your Appreciation
A great tip for retaining customers and continuing to upsell to them, is to continually show your appreciation. After making a sale, reward the customer’s loyalty. This could be something as simple as just sending them a thank you letter, letting them know they are appreciated. You could also send a free gift or give them a unique discount on their next purchase.
If you want to really impress them, why not create a full loyalty scheme? Each purchase could earn the customer points, for example. They could then use these points to redeem different discounts and freebies.
Overall, upselling and cross-selling can prove to be extremely successful at boosting sales. The tips above are some of the best you can follow in order to use these methods correctly.