Cross-Selling and Adding on is just as important!
Cross selling is an excellent way to increase the value of a sale by suggesting an accompanying product. When applicable, scripts should be developed for cross –selling opportunities.
Example: “Mrs Davis, thank you for purchasing your coffee maker with Coffee Mate today! I do want to let you know before you go that you qualify for a promotion we are having on our coffee filters, buy one pack get one free with the purchase of any coffee maker, with one pack being 4.99, would you like to capitalize on this great deal?
Its like selling a printer, and not offering the ink to go with it!
Anytime you use words like qualify, promotion and capitalize…it makes the customer think about the deal they are getting if they choose to add on to their order.
Very important that the add on sale relates directly to the purchase, and that is at a relatively low cost in comparison to the original order.
Be brief, to the point, and casual. Typically no more than a line or two.
“Profiting By Phone—No Nonsense Skills and Techniques for Selling and Getting Leads by Telephone.”
A book written by Jim Domanski. Gives you the how to’s and that what’s on Up selling and Add ons to your sell!
Here are 10 tips from Jims book to help you cross-sell and up- sell
1. Sell First and Tell Later
Never, ever attempt to up-sell or cross-sell until you have all the information necessary to fulfill the first order. In our rush or excitement to up-sell we sometimes forget that the customer has an order to place. Selling additional items too early in the call might turn the customer off. You could lose the original sale.
2. The Rule of 25
The value of an add-on sale should not increase the overall order by more than 25%. For example, if the original order is $100.00, you should be cautious in your attempts to exceed that order by $25.00. Despite the fact that people are motivated to buy, they still have a mental limit as to the amount they will dispense. For whatever reason, that figure rarely exceeds 25%. Generally, going above that value is only marginally successful.
3. Make a Profit
This is more of a management, rather than a salesperson decision, but the whole point of the exercise is to make money. The item(s) you choose must make enough profit to at least cover the cost of the additional time you spend on the phone. One source I’ve read claims that you must show at least a $4.00 profit on each add-on sale.
4. Don't Dump Junk
There is, on occasion, the urge to use cross-selling and up-selling to move unwanted inventory. This in itself is okay provided the customer isn’t saddled with useless or defective products. If you are clearing stock that won’t be replaced, let the customer know. If it is a discontinued line, don’t hesitate in letting the customer know. If you don’t, you’ll be sorry later.
5. Limit and Relate
Limit your choice of add-on items to those that clearly relate to the original purchase. If a customer were buying a blazer he has seen in a catalogue, suggesting a shirt and a tie makes sense. Suggesting a goose-necked garden hoe, however, does not.
6. Familiarity Breeds Success
The more familiar your customer is with the add-on item, the more likely he or she is to buy. Cross-selling and up-selling is not the time to introduce a brand new product, unless the price is unusually low (Refer to #3.) New products take time to sell using features and benefits. This will take additional time. The purpose of the up-sell is to increase the order while the buying motive is strong. Introducing something unfamiliar will only confuse the customer.
7. Plan, Plan, Plan, and Plan Again
Again, likely a management issue, but your life will be much easier if the program is well planned and implemented. For instance, not only must you decide which products to sell, you must determine what product(s) they relate to. So, if you are going to up-sell with ties, you’ve got to decide, in advance, which blazers they will match.
8. Train to Avoid Pain
Ensure that you are trained on the products or services offered. Make sure you understand them. Rehearse the skills necessary to get the customer to say "yes." One catalogue firm spends 40 hours on training designed to demonstrate how a particular add-on applies to and benefits the customer.
9. Test with the Best and Roll With the Rest
Okay, another management issue that you might want to make your manager aware of. Test your cross-selling and up-selling with your best people. They have the drive and initiative to work out any of the kinks. Introduce the cross-selling and up-selling program to the rest of the sales reps only after you are sure of the test results.
Your cross selling efforts (E) will be directly dependent on how motivated (M) you are. Cross-selling and up-selling takes additional time and effort. If there is no reward . . . if you are not motivated . . . chances are the program will not be a rip roaring success. Compensation (C) is always a critical factor in selling and perhaps more so when you are asking for that little extra with each sale. The other "C" stands for Control. Whether you are a sales rep or a manager, the ability to control the direction of the cross-selling and up-selling activities will determine success. In other words, measure your productivity, your performance and your profitability. If there is something lacking in any one of these areas, make changes.