Upselling: The Key to Your Best Valentine’s Day Ever
By
Jeff Mowatt, CSP, HoF
PostedJanuary 4, 2019
If you and your employees aren’t trained on effective ways to upsell, chances are you either offend customers by being too pushy or leave money on the table that customers would have willingly spent with you. Either option is costly.
“Consistently and skillfully suggesting higher-tier or affordable add-on items to every customer can result in significant sales increases this holiday – and every day.”
When I train employees on how to increase revenues from current customers, I often find that not enough attention is paid to upselling.
Upselling refers to when you help a customer decide to buy a little extra or to slightly “upgrade” the final purchase. A car dealer, for example, might inform customers at the time of ordering about upholstery protection and undercoating. A shoe salesperson might suggest that when you buy a pair of shoes that you also use some weather-protection spray. These are usually small purchases that the buyer doesn’t have to put a lot of thought into. The bonus is they can be extremely profitable for you as the salesperson and for your organization.
WHY UPSELLING IS SO PROFITABLE
Consider this example. A customer buys a car with monthly payments of $395. With that size of investment, there’s very little resistance to adding $2 to the monthly payments for upholstery protection. For the dealer, however, that additional sale is significant, as over 48 months, it adds up to a $98 sale, with a huge profit margin.
Some would say that a $98 sale on a $25,000 vehicle is only a minimal increase in the overall sale. Why waste your time? My argument is that if it takes only 30 seconds to make that extra $98 sale, then you’re making more money for the company than with any other activity you do. If your salary is $20 per hour, then the 30 seconds you take to upsell costs the company about 17 cents. If it costs the company only 17 cents to make $98, that’s a huge return on investment (ROI), and the fact that it’s attached to a $25,000 sale is completely irrelevant. So, upselling is one of the highest and best uses of your time.
UPSELLING SHOULD BE EASY
The best part of upselling is that it’s practically effortless. Since it’s done after the customer has decided to go ahead with a major purchase, the hard part of the sales conversation has already taken place. You’ve already established rapport, identified needs, summarized, presented benefits, asked for the order and handled objections. Upselling is just presenting the information in a “by-the-way” assumptive manner.
The Three Biggest Mistakes in Upselling
1. No attempt is made to upsell.
2. The salesperson comes across as being pushy.
3. The upselling is made in an unconvincing manner, so the customer generally refuses.
EFFECTIVE UPSELLING STRATEGIES
• Assumptive is the key. You have to assume that the customer will naturally want this. Begin the upsell with a brief benefit, then, if possible, add something unique about what you’re selling. To avoid sounding pushy, particularly if the upsell requires some elaboration, ask for the customer’s permission to describe it.
• Here’s an example of the wrong way to upsell. Imagine dining at a restaurant where you’ve just finished a big meal. The server asks, “Would you care for dessert?” If you say “yes,” you might give the impression of overindulging. So many customers refuse out of politeness. Result: no sale.
• So, the savvy server doesn’t ask if the customer wants dessert. The professional just assumes that when people go out for a meal, they are treating themselves. So, of course, they’ll want to treat themselves to dessert. In this case, the server pulls up the dessert tray and says, “To finish off your meal with a little something sweet (that’s the benefit), I brought the dessert tray over for you.” Would you like to hear about the most popular ones?” (asks permission to proceed)
• In a floral department, upselling might sound something like this: “As a finishing touch to your floral gift (or arrangement), we can add a heart-shaped foil balloon or a box of chocolates (or greeting card, plush animal, scented candle, etc.), for only $3.99. Would you like to see (or may I show you) our selection?”
• Using the dessert example, but in a floral department, it might sound something like this: “For just $9.99, a small box of our gourmet truffles can put the exclamation point on your statement of love” or something that reiterates the special occasion they are celebrating.
KEY POINTS TO REMEMBER
• Focus on customer needs, not yours. Don’t try to sell customers something you wouldn’t buy if you were in their shoes. It’s totally irrelevant whether this purchase suits your needs; what is relevant is whether it suits the needs of the customer. That perspective empowers you to upsell effectively and with integrity.
• Hands-on demonstration. One of the most effective upselling techniques is getting the customer to use the product in your location. A hairdresser, for example, might put hair gel in the customer’s hand and show him how to apply it himself. By showing the client how to get the salon look at home, the hairdresser creates a value-added upsell. In a floral department, the demonstration could show customers how to recut flower stems before putting them in water.
• Group related products. It’s a good idea to group similar add-ons and offer them as an upsell at a package price. If someone is getting a haircut and you talk to her about shampoo, it only makes sense to show her a package deal that groups conditioner and shampoo at a package price. A floral department example might be offering a vase or stem cutters with every bouquet sale or a decorative automatic plant-watering device with every plant sale.
BOTTOM LINE
Every floral department manager should realistically look at whether employees could improve the way they upsell. For most businesses, a little professional training can make a world of difference to your customers and your bottom line.
Jeff Mowatt is a customer service strategist, Hall of Fame speaker, and bestselling author. For more tips, training tools or to inquire about engaging Jeff for your team, visit www.jeff mowatt.com.
