Cross-sell and Up-sell Existing Customers

Your current customer is your best customer. If you’ve worked hard to ensure that each has a positive experience doing business with you, then winning repeat business is easy.

But to take that concept a step farther - what about trying to sell them more, and possibly something different, on top of their normal reorder?

There are two strategies to consider: up-selling and cross-selling.

Up-selling

Up-selling is providing a better product (or a higher priced version) than the customer is already using. Your cable company may provide 100 channels for $30.95 per month. But they might be able to up-sell you to $34.95 per month for their upgrade: digital service.

Cross-selling

Cross-selling is when that same cable company tries to sell you related services, like a digital phone connection or high-speed Internet. Getting the customer interested in complementary items is a proven selling technique, especially when your customer has an affinity to you, your business and what you offer.

Think of it this way — in any given selling opportunity, you might be ripe to make a bigger deal by up-selling a higher profit-margin product or service contract. And you might be positioned to generate brand-new revenue by cross-selling related items. You should always try to identify and explore these options with customers you think would be open.

An up-selling/cross-selling tip: provide a financial incentive, a “bundled price,” if a customer commits to a much larger order.

Get Partners to Sell for You

Consider forming alliances with other companies that are willing to sell what you offer along with what they offer.

There’s a new term afoot, “stream of commerce,” that refers to the point in a transaction – let’s say on your Web site – when you can immediately refer customers to another site offering their own products. It’s like cross-selling, except the selling is done by the other business and you get paid a commission. You might, for example, have a retail Web site and offer people a deal on magazine subscriptions immediately after finishing a transaction with you. At that point, they click over to the magazine subscription site and you get a cut of any business they do there.

This is different from ordinary “affiliate” programs, because you’re highlighting it as a service to your customer rather than placing a banner ad on your site to fish for click-through revenue.

Beyond stream-of-commerce opportunities, explore basic incentives with complementary businesses or entrepreneurs. Let them know you’re excited about your business and how it can enhance their offerings. Look how the Geek Squad aligned with Best Buy — the rest is history!

And to get the most of this opportunity, make it a two-way street. Be willing to promote and sell what your partnering company offers as well.

Follow Up (with Thanks) After the Sale

It’s a lot easier to keep a current customer than to find a new one.

So why wouldn’t you thank them for their business?

Keep in touch with your current cadre of clients. A thank-you card is a simple, but high impact, gesture. Give special gifts to people who send you referrals — a $20 tin of gourmet popcorn is cheap, but fun.

Salespeople can get so caught up in the next deal that they forget those who just put money in their pocket. Keep your face and name in front of them so, when they’re ready to spend more, you’re the first one they call.

Tip

Be accountable, maintain integrity, win business

The best way I have found to get new business is to passively take it away from my competitors by simply doing what I say I will do for my customers. I don't even have to do any thing extra because a lot of my competitors degrade themselves by telling customers anything to make a sale, telling them what they think they want to hear.

I am in the home healthcare business and a lot of my competitors think that, because their company has the "contract" the customer has to do business with them. I hope they never find out that it doesn't work that way because it's great for my business. It is so simple... treat everyone with respect at all times. Don't lie, and if you don't know the answer to something, don't make the answer up - admit that you don't know. If you do these three simple things you will probably be head and shoulders above your competition in your prospective customers’ eyes. The truth will set you free (and bring you a lot of business). - Tip submitted by seeker

StartupNation’s View: Simple but effective, seeker. This advice is very consistent with the phrase we use a lot, "Under promise and over deliver." Always avoid over promoting. Make sure there’s substance behind all of your marketing. Also, your advice touches on where to focus – on the competition or on the customer. You’ve clearly been successful not fretting about what the competition is up to. It’s good to know that if you just concentrate all your energy on the customer, you can win business.