In the eCommerce industry, a decided customer is a rare phenomenon. Some consumers are only aware of their needs and do not know which practices satisfy them. Also, sales can be a complicated process because there is a fine line between making proper suggestions and selling more with better tactics. To improve sales, many businesses use complex strategies, which require customers to memorize the technique. However, to increase and protect revenues rather than just cutting costs, upselling and cross-selling can be the best strategy in lead generation marketing to sustain momentum in every scenario.
Notably, as the world settles back into the new normal, one of the essential decisions you will make will be targeting your existing customers. Wondering why? Because selling to your existing audience has always been the most effective way to increase revenue. Further, cross-selling and upselling strategies have always proved to earn more revenue from existing customers. So, such a sales tactic is not similar to the conventional one where cold-calling is considered necessary.
Driving revenue from the existing customers is synonymous with a customer success game. And, the strategies like cross-selling and upselling can drive huge ROI when done correctly. In this guide, we will dig deep into everything related to these two sales techniques, and we can turn our customer’s success into our success.
What Is Cross-Selling?
Let’s begin with an example. “Do you want to add fries with your meal?” You must have encountered this problem the last time you were at your favorite burger restaurant. Else, recall when while buying a pair of jeans, the salesperson pitched a belt that would go well with it. These were the perfect examples of cross-selling, whether your primary product was a burger or a pair of jeans, and you were asked to add complementary items alongside your purchase.
Cross-selling is encouraging the customer to purchase anything in addition to the primary product. Such practice identifies products that suit the customer’s additional needs unfulfilled by the primary item. Moreover, cross-selling is a customer success story that leaves behind the conventional strategies for pitching the audience. It taps on the existing customer’s needs instead of the new ones.
What Is Upselling?
On the contrary to cross-selling, upselling offers another product that acts as an upgrade of the primary purchase. If we move ahead with the above example, then in case of upselling, the person taking your menu at the burger restaurant would suggest adding an extra layer of cheese to your burger. Thus, it will upgrade your burger and will make it costlier. In this form of sales technique, both seller and customer are equally involved. The salesperson not only sells a high version of the product to gain revenue, but the buyer also adds enough value to their purchase by upgrading it. Upselling, therefore, makes a win-win situation for both parties.
What Are The Three Pillars Of Successful Customer Success?
Customer success drives upselling and cross-selling revenue. But, how? There are three pillars, which serve as a foundation for approaching customer success. Let’s explore these three pillars in detail and understand how you can implement them into your sales techniques.
1. Ensure Return on Investment (ROI)
ROI can take the form of a business impact, such as building repeatable procedures or templates to cut down on the time it takes to execute particular operations. ROI is a personal win for a member of your client’s team or a buyer for any business. So, to ensure ROI for the customer’s success, one can create a referenceable customer.
Such a customer can be a happy customer who loves your services, raves about them, and wants to tell others about your services or products. You can even call them loyal customers. For creating a referenceable customer, you must come up with campaigns or offers that might excite your existing audience. The hype must be so much that your existing customer gets urged to spread the word among others. They are customers who always recommend your brands or services to others and are more likely to purchase an additional product.
Your customer success team must continuously check that your customers see a return on their investment in your product or service. It will allow your company with confidence that they are delivering as promised. Furthermore, your existing customers must be aware that your customer success team is available to assist them in achieving their goals. And, this is how you lay the groundwork for an enthusiastic audience who will drive upsell income.
2. Product Adoption Strategy
For many of the salespeople out there, this is one of the possible methods of customer success. But what if your customer is buying the product but not using it at all. Therefore, engaging clients and reducing churn are the two key elements of driving adoption. Ensuring that your customer is engaged plays a vital role in driving adoption. An engaged customer is a boon for your business because, on using your product, they will notice its value and tell others about it. So, make sure that you provide your customers with a clear picture of how your brand’s product or service can help them.
The next element is reducing churn. Customer churn refers to the no. of customers who leave your brand or service in a given period. Hence, reducing churn is a major technique that needs to be followed. We want our customers to be happy with our product or service to continue to use it. If they are satisfied, they will renew their subscription or purchase a similar product (cross-selling revenue). Therefore, it’s critical to pay attention to how your customers use your product. They might come up with fresh and inventive uses for the product. Support it, of course, if it’s valuable, and you’ll reduce customer churn.
3. Practice Relevant Cross-Selling And Upselling
Both upselling and cross-selling are useful methods in sales. They allow the customer to get more value from your product or service, provide more loyalty to your business, and have high revenue for the customer.
As a salesperson or a member of the customer success team, you must manage your time wisely and look for profitable customers. First, keep track of the usage data and monitor which social media channels have many active users. Then, understand your customers’ priorities and customize your services accordingly. Moreover, you can take advantage of your customer’s feedback score to decide the suitable time for upselling or cross-selling. Also, when a consumer reaches their success milestone, you can plan to upsell or cross-sell your product or service.
The Bottom Line
Cross-selling and upselling are similar to each other. They both aim to provide more value to customers rather than restricting them to previously purchased items. The business goal in both cases is to boost order value by informing customers about other product possibilities they may not be aware of. In all cases, the key to customer success is to genuinely grasp what your customers value and then respond with products and features that match those requirements.
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Head of Business Development & Consultant
A successful sales leader, Indrajeet has effortlessly led teams to successful deliveries by redefining business promotion, lead generation, email marketing, and a series of out-of-the-box sales and marketing techniques. Ability to work independently and with cross-functional teams and facilitating truly agile processes while seeking iterative improvement.
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