Cross-Selling and Up-Selling Your Products and Services | How-to Guides for running your business from Business.com

It's been proven that the efforts and costs required to land a new customer far exceed those associated with selling to an existing customer. That's why you should take advantage of every sales transaction to increase the amount of the sale. Two methods used to achieve this are cross-selling and upselling. In cross-selling, you recommend adding related products or services similar to the one the customer is purchasing. In upselling, you ask customers to make more expensive purchases in place of the original intended purchase. In addition to increasing sales figures, these powerful sales techniques can:

Introduce customers to new products or services.
Turn one-time buyers into long-time customers.
Increase the perceived value of a customer's purchase.

Action Steps
The best contacts and resources to help you get it done

Get training in cross-selling and up-selling

Cross-selling and upselling are learned skills. Consider offering a training program to your employees to learn how to suggest products and services to meet your customers' needs and when to make the pitch.

I recommend: You and your sales forces can engage in classroom or online training to earn certification in cross-selling and upselling.

Turn customer service reps into cross-sellers

Remember that every interaction with a customer is an opportunity to cross-sell or upsell, even interactions by your customer service staff. Train your customer service reps to transform routine communications into selling opportunities.

I recommend: Forum.com offers a report on key customer service rep behaviors that entice customers to buy more. CustomerServiceGroup.com offers the "Guide to Cross-Selling and Upselling for Customer Service Professionals" to help transform your customer service team into a sales team.

Recognize employee efforts

Encourage cross-selling and upselling with an employee recognition and reward program. When an employee increases sales using these techniques, offer them some sort of incentive that will also inspire co-workers to increase their efforts.

I recommend: Reward employees for their cross-selling and upselling efforts with an incentive program from LoyaltyWorks.com.

Use technology

Customer relationship management and sales force automation software can help you with your cross-selling and upselling efforts. By analyzing past buying habits, you can pinpoint additional or higher-value products or services that would appeal to existing customers.

I recommend: Sales force automation software, such as NetSuite, includes components to assist with your cross-selling and upselling efforts.

Use customer recommendations and testimonials

It's human nature to want to know what other people are buying, especially when you're considering making a purchase. Amazon.com is a master of using this technique to sell add-on products through the recommendations of other buyers.

I recommend: Get tips on how to collect and use customer testimonials at About.com. Observe how Amazon.com encourages additional purchases through recommendations and on-site activity of other buyers, such as books purchased or titles reviewed.

Cross-sell and upsell on your Web site

Let your Web site do the cross-selling and upselling for you. Whenever a customer views a product, your Web site should highlight related products or a more expensive model of the same item.

I recommend: For tips on upping the volume and value of each sales transaction on your Web site, visit WebOptimiser.com. You can also purchase eCommerce tools for your Web site from EndPoint.

Tips & Tactics
Helpful advice for making the most of this Guide

Make sure the items you're attempting to cross-sell are indeed relevant to the one your customer is purchasing. If your suggestions are off-base, you may lose the whole sale.
Target top customers for cross-selling and upselling. Their repeated buying habits are indicators for high sales success.
Consider the timing when cross-selling or upselling. The pitch should seem natural in the sales process.

The official source of Cross-Selling and Up-Selling Your Products and Services is
the Sales Techniques page at Business.com

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