In a world where a global pandemic has struck, humanity as we know it is coming to a screeching halt. In a matter of days, all disinfectant products, cleaning supplies, and toiletries have been cleared off the shelves. Rubber gloves and sanitary masks are practically impossible to find. Freezable meats and non-perishables are scarce, and people are panicking.
But why? Why those products? Why those combinations?
Besides the fact that the world is battling this new supervirus, these products are commonly bought together because they complement each other. Just like milk and cookies, isopropyl alcohol and aloe vera are the latest celebrity couple as people look to make their own hand sanitizer.
Understanding products that complement each other is the first step to cross-selling. Like upselling, cross-selling can provide value to both you and your customer
But first, let’s back up.
What are Upselling and Cross-Selling?
There are so many different techniques to add more value to a customer’s experience with you. Upselling and cross-selling are two useful techniques that are valuable to both the business and the customer.
Upselling is giving customers an alternative option that is somehow better than the option they are initially choosing. For example, say a customer came in to buy a new bed frame. Initially, he or she looked at a full-sized frame without underhand drawers. Upselling to this customer might be showing him or her a full-sized frame with underhand drawers or even a queen-size! The idea is to increase the value, without having to add more products to the shopping cart.
Cross-selling is like accessorizing. You are offering the customers additional items that complement their original purchase. For your earlier bed buyer, cross-selling would include providing him or her a matching nightstand, or maybe a new duvet cover! When cross-selling, adding value correlates with adding related products to your customer’s cart.
Upselling and cross-selling take a lot of knowledge of both your products and the customer’s wants and needs. If you offer the wrong product, you’re likely to turn the customer off instead of having them see the added value.
Throughout the interaction with your customers, they should reveal their specific wants and needs, so pay close attention. Being able to pick up on those will help you upsell or cross-sell appropriately.
Upselling and Cross-Selling Strategies
Like everything in life, there are some best practices for upselling and cross-selling.
Communication
Like all good relationships, communication is key! Listening to and understanding your customer’s wants and needs is essential. Figure out where they are in the buyer’s journey. Knowing this will help you gauge what/how much to offer them.
Build bundles
If your business is the kind that naturally cross-sells, it’s a great idea to have pre-built packages ready for customers to choose. Electronic stores are an excellent example of this. When you buy a new computer, the company might offer you an insurance package that includes an extended warranty, an anti-virus system, and a software upgrade. These are all things customers would find valuable to accompany their purchase of a new computer!
Paint the picture
The better your customers can see themselves using what he or she is buying, the more likely they’ll be open to your upselling and cross-selling techniques. Paint the picture for them. The more personal you can make the situation, the more customers will be able to relate. When customers can envision themselves using products, they’re more likely to buy.
“Ok Bill, now imagine it’s July 4th weekend. You and Susan have all the kids and grandkids over. You’ve got your new grill loaded up with burgers and hotdogs. Everyone is having a great day. You go to reach for an ice-cold Corona for you and your son-in-law and OOPS! They’re warm! It’s because you have a crappy cooler, Bill. See, this new model keeps ice for 24 hours, even in 100-degree weather.”
Plan your path
There’s a strategy to how stores are laid out. It’s why grocery stores keep the milk in the furthest corner from the door, so you have to walk through the whole store to get one item. Funny how on your way to the milk you “suddenly” remember you also need 14 other things…
When helping a customer in-store, walk them to the register, but plan your path accordingly. Take note of where the complimentary items are in the store and try to walk customers past those related items on their way to pay. It’s pretty sneaky, but it can be an effective way to cross-sell.
Follow up
After their purchase, follow up with customers, especially if they didn’t initially buy the complementary items. You can add them to a workflow to market those additional items. Maybe include a discount or promotion to entice them more. Either way, following up can offer insight as to why they didn’t buy the additional items initially, but it will also give you another chance to make the sale.
When to Upsell and Cross-Sell
Sometimes it might be hard to get a read on your customer and the appropriateness of upselling or cross-selling. Knowing when and the best way to upsell or cross-sell to your customer is key to offering the most value.
Does the product you’re offering actually complement or belong with the product your customer is already buying?
At times, we might be so eager to make a sale or hit our numbers, that we might push products onto customers that don’t compliment each other, or aren’t even related to one another. Before you offer an up or cross-sell, make sure the product is relative and not part of your personal agenda.
Will they actually benefit from the new/additional product?
While an upsell or cross-sell might add value to some customers, they don’t add value to every customer. Recognizing when a customer will find value is key to making a successful sale.
Are they open to spending more?
Some customers might find value in other products in theory but might not have the budget to support it. That’s ok! Similar to the scenario above, not every customer will be qualified for the upsell or cross-sell. Ask exploratory questions to determine how much a customer is willing to spend so you can decide what additional products might be best.
Improve your Upselling and Cross-Selling Strategies
The strategies we mentioned above are great, but the best way to really improve your upselling and cross-selling techniques is to collect data with each sale. Data collection is a great way to learn how your customers are buying. Its how Amazon suggests “items you may like” and how Spotify is able to create custom playlists for you.
Collecting data via a customer survey is a great way to not only try to predict consumer habits but also earn unique feedback from your customers. Survey kiosks make it quick and easy to collect customer information and feedback.
