Most growing businesses focus their marketing efforts on gaining new customers. What else would you want more of, right? More customers symbolizes a larger market share and in turn symbolizes market leadership. However, new customers are not where your revenue comes from. You’ve been looking in the wrong place to grow sales, even though the right place has been under your nose the whole time.
Existing customers are 50% more likely to purchase new offers, and spend 31% more than new customers who do choose you.
This shouldn’t really come as a surprise. If given the choice between your favorite local coffee shop and the new one that just opened up, you’re going to choose your regular joint. Even if the new shop is closer, or has a greater selection of drinks, you’ve become loyal to your brand and won’t want to change unless you’re thoroughly convinced otherwise. And your favorite place? You likely spend freely there because you know you’ll be satisfied. The same concept is true for your customers. If someone has chosen you before, they’re very likely to do it again.
Your customers already know and trust you. If they’ve purchased from you before, it’s not a far stretch to assume they’d do it again. This is the art of upselling. If you can motivate a second, third, and fourth purchase from a customer, you’re making 50% more than the guy who just acquired a new customer.
When you connect your customers to a solution that they need, then they will practically line up to purchase. If that favorite coffee shop of yours starts selling bags of beans, it’s very likely you’ll ditch your Folgers in favor of the good stuff for home. However, you need to ensure your customers are aware of what you have to offer, and can be convinced it’s worth the extra money, effort, or other obstacles they face.
Upselling doesn’t have to be an arduous process, and it doesn’t have to be unpleasant for your customers. Many believe that customers don’t like being marketed to, but the opposite is true for those who know, like, and trust your brand. Below are four ways in which you can learn to upsell that will help your company grow tremendously.
Four Ways to Upsell
1. Make your service “bigger”
Offering greater value is the easiest way to upsell a customer. Any business can go on Fiverr and buy a blog post for $10 or less; why do they choose me? It’s because I’m not just providing the writing. I’m providing the planning, the research, and the experience of a content marketing strategist. They aren’t buying a simple blog, they’re getting the whole deal. Charging customers for bigger, better services will incentivize them to pay for what you already have in store.
2. Offer upgrades to an existing service
Let’s look at another example. Say you are a freelancer who offers website design services. Instead of offering one standard price, you could instead give customers the option of a simple microsite (blog, about us page, contact), a full templated website (Wordpress sites), or a fully customized site. By providing these upgrades along with affordable options for new customers, you’re allowing your customers to grow their sites along with their trust for your service. (Hint: offering three choices is a sales technique.)
3. Offer similar services
If you have more than one skill set, offer many different services or products to your customers. This gives them something more to shop for, and can simplify their lives by using or owning a brand collection. If you’re already offering web designs, next you can provide web updates, app development (if you have that skill set), graphic design. These are all things that someone with their own website will need, and would much rather hire you to do than a stranger.
4. Add a subscription service
Subscription services are great for upselling. Once a customer has dipped their toes in the water with your product or service, you may offer them the option to re-order monthly, giving them the same great benefit they want long-term. This is especially useful for disposable or consumable products, and services that customers need on a monthly or regular basis.
Use these upselling tactics to increase your revenue for the first quarter of 2019. Stop fighting tooth and nail for a small market share increase, and watch the money flow in as you build a loyal, satisfied customer base. For more sales info and entrepreneurial tips, read more from the blog.