Your customers only buy 1 thing from you because you have not educated them about your other products and services. Does that seem like an exaggeration? Think about it. When was the last time you tried to sell your customer on something additional? Perhaps you are convinced it would be too pushy or maybe you just don’t know how to approach the topic. Whatever your reason, it’s time to reconsider. Up-selling and cross-selling can be an untapped goldmine for small businesses. By following some simple strategies, you can drastically increase your revenue without adding any extra marketing costs.
What is Up-selling and Cross-selling?
Before we dive into the strategies, let’s define what up-selling and cross-selling actually mean. Up-selling is when you encourage someone to purchase a more expensive version of the product they are already interested in. For example, if someone is interested in buying a small iced coffee, you may encourage them to purchase a medium or large iced coffee instead. Cross-selling is when you encourage someone to purchase additional products or services in addition to the product they are interested in. Continuing from the previous example, this could be telling the customer about your fresh muffins or breakfast sandwiches available to go with their coffee.
After Purchase Email
One of the easiest ways to start with up-selling and cross-selling is to send after-purchase emails. It’s a quick and easy way to suggest other products they may enjoy based on what they’ve already purchased. For example, if your customer just bought a women’s sweater, you can send an email with suggestions for accessories or shoes that would go well with the sweater. This approach works because the customer is already in a shopping mindset. It’s a good way to remind them of other things they may need or want.
Focus on Customer Journey Milestones for Opportunities
Another great way to incorporate up-selling and cross-selling is by focusing on customer journey milestones. These are the moments in a customer’s journey when they are most likely to be open to additional purchases. For example, a customer who has just purchased a gym membership may be more open to purchasing workout clothes, supplements or personal training sessions. By focusing on these key moments, you can make sure your offers are relevant and increase the chances of making a sale.
Use FOMO to Encourage New Purchase
Finally, using FOMO (Fear of Missing Out) is a great way to encourage a new purchase. This can be done by offering a limited time deal or highlighting how popular a certain product or service is. A customer who believes they are missing out on a great deal or popular product is much more likely to make a purchase. This strategy should be used sparingly, so as to not come across as too pushy, but can be a great tool when done right.
Conclusion
In conclusion, up-selling and cross-selling are often overlooked by small businesses, but can be an incredibly effective way to increase revenue. By using after-purchase emails, focusing on customer journey milestones, and using FOMO, you can make sure your offers are relevant and appealing to your customer. It’s time to re-think how you approach selling additional products and services to your customers. Remember these three key takeaways: be relevant, be strategic, and be valuable. With these in mind, you’ll be well on your way to tapping into the goldmine of up-selling and cross-selling for your small business.
