One of the best ways to make more money as a business is to upsell or cross-sell a customer. The goal is to entice a customer into buying products that compliment an original or intended purchase. For instance, asking a customer if he or she wants fries with his or her burger could increase the amount of revenue derived from that customer. However, timing is important when trying to effectively upsell or cross-sell a customer.
Why Upsell or Cross-Sell?
In some cases, a company may be meeting customer demand by using upselling tactics. A company that sells computers may be able to retain its customer base by offering IT support or special prices on computers that are geared toward businesses. Phone companies often offer television and Internet packages to both make more money and ensure that their customers will use them exclusively for their home entertainment needs.
When Can You Use Such a Tactic?
The best time to upsell is anytime there is a logical reason to do so. When a customer orders the regular size drink at a coffee store, he or she may be able to get a much larger drink for another dollar. Although the customer doesn’t necessarily need that larger size, he or she may be tempted to get double the drink for less than double the price. It may also be a good idea to upsell when a customer purchases an item for which there are many accessories. An example of this could be selling online game play capabilities to someone who just bought a video game console.
Customers Who are Buying Something Unfamiliar May be Prone to Upselling
While it is never ethical to force a customer to purchase something that he or she doesn’t want or need, inexperienced customers may be agreeable to upselling. An example may be someone who has just bought a car for the first time. He or she may be more likely to buy gap insurance or rustproofing because that person doesn’t want to feel unprotected. If a customer is buying a computer and isn’t necessarily tech-savvy, he or she may buy an extended warranty or additional support services if the computer already comes with a manufacturer warranty.
A business is always looking for ways to make more money. One method is to upsell or crosss-sell a customer whenever it makes sense to do so. While you never want to take advantage of a customer, there are times when buying a side dish or a computer accessory could result in convenience for the customer and more money for the company.