For small businesses, strategies are crucial to improving their sales. Upselling and cross-selling are some marketing trends businesses use to boost their revenue.
However, there are several negative comments about cross-selling and upselling, such as pushy salespeople, irrelevant sales pitches, and unethical sales strategies.
In reality, as a salesperson, it is our job to understand if the additional products can help our clients. Then, present it to them so they can see the value in adding to their purchase.
To help you boost your revenue, it is important to use marketing strategies, such as upselling and cross-selling. But how would you know when to apply them?
Would you be able to increase your revenue through these strategies? Let’s find out more about upselling and cross-selling and the effective ways to use them.
What are Upselling and Cross-selling?
Cross-selling means suggesting a product relevant to the one the client is having. For instance, a shopper is buying a purse, and you recommend a matching wallet.
Meanwhile, upselling means offering a version of the product that is more expensive, thinking that the shopper wants to upgrade the item.
If done correctly, both strategies can increase your sales while helping customers at the same time.
When it comes to upselling and cross-selling, doing it right and at the right place and time are the keys. If you upsell a product or service that is not relevant or you are selling in a pushy manner, you are more likely to fail in converting the customer or, worse, lose the original sale.
Effective Strategies for Upselling and Cross-Selling
As a salesperson, your objective is to increase the revenue, regardless of how you do it. In upselling and cross-selling, it is vital that you have a strategy for a successful sale.
For a successful upsell and cross-sell in retail, here are some tactics that can help you.
Be sure you provide customers value
If you are trying to persuade customers to buy more items or upgrade their products, it is apparent that you want to gain more benefits for your business. But you have to keep in mind that customers are unsure whether not or to make a bigger purchase if they don’t think they will benefit from the deal.
This means, aside from your own profit, you also have to give value to customers to persuade them to buy more.
Make sure customers see provided value
If you think that your deal will bring value to you and your customers, you have to show all the benefits your customer can get. This will convince your customer to buy a related item or upgrade products.
Some of the benefits you can offer your customers are a discount voucher, a loyal card, an extended warranty, or reward points.
Consider the Rule of 3
When upselling, find out if you can apply the “Rule of 3”. This means providing the shopper with three options for their items, and this is more likely to boost their order’s value.
These options are:
- Requested products
- Alternative products
- Dream products
The requested product is an item the shopper is looking for. An alternative product is an item that is a little better with a higher cost.
And lastly, the dream product is considered the best option with much better quality and highest cost among the three choices.
Among the three products, the dream product is most likely to be bought by shoppers. Giving your customers three choices allows them to choose.
This method is often used in upselling.
Once you have mastered the technique of upselling and cross-selling, this can definitely boost the revenue of your business. This will encourage your customers to buy more products or expensive items.
And now, purchasing an item does not only happen in physical stores. Customers also buy products and services online on which they can pay for the item in some ways, such as card payments or electronic payments.
As a salesperson, it is crucial that you have knowledge about point of sale (POS) and how this works.
Point of sale or POS is where a customer pays for the goods and services he gets. It is also an essential focus for salespeople as customers tend to purchase high-margin products at these strategic locations.
When a customer selects items from stands or checks out online, they are at the point of sale. Using efficient point of sale lending software helps the business to make more sales.
What is POS Lending Software?
A POS lending software allows offering loans at the point of purchase to allow customers to purchase products or services themselves. Just like consumer lending, POS financing works with credit cards, installment loans, and in-store loyalty cards.
People consider taking a POS loan when purchasing an item that they cannot afford, such as cars, furniture, or kitchen appliances. Thanks to the development of technology, POS financing has developed recently and made online lending possible.
The market provides instant mobile and online loan opportunities supported with clear repayment terms before taking out loans. This allows borrowers to take out loans from their smartphones at the point of sale of any retailed immediately and pay for the items.
And this has become the most preferred POS solution for retail as it is convenient and fast.
The Best Way to Upsell and Cross-sell
To increase the sale of your business, it is important to choose a strategy that will work for your store. Upselling and cross-selling can be significantly helpful to your business; however, you have to consider thoroughly while implementing it for your store.
In upselling and cross-selling, remember that you should provide customer value, ensure they see provided value, and give them options. This will not only increase the revenue of your business but also help customers by introducing products that they may need.
Therefore, the key to successful upselling and cross-selling is understanding your customers’ value and providing them options that meet all their needs.