Cross-selling and up-selling to maximise revenue
26 May 2020
Tuesday 26 May 2020
As a salesperson, you have done the hard work building relationships with new clients and getting their business. Now is the time to maximise what you can sell to that client, but what is the best way to go about it?
In this morning's compelling and practical webinar, hosted by the Association of Professional Sales (APS), in our Covid-19 series, to keep sellers safe and selling, Les Hines at RevenueTEK explained how to approach the task of increasing sales by up-selling and cross-selling to make the most of business opportunities that are available to you.
Hines began his presentation with a persuasive statistic: winning new business with new clients is four times more difficult than securing repeat business with existing clients.
Up-selling is increasing the size and the scope of the deal; you go to a car dealership intending to buy a mini and come out with a top of the range BMW. Cross-selling is adding more products or services; you have bought the car, now what about the alloy wheels, paint protection, payment protection insurance, servicing costs and roadside assistance?
The key steps, said Hines, are to understand your client’s “wallet” - how much they have to spend, what is your potential share of that money and where is your scope for growth?
To find those opportunities, Hines suggested a couple of simple tools; a spreadsheet for tracking which customers are buying what products and a straightforward pyramid diagram to show what offerings can be put together to provide new solutions that will be more valuable to the customer.
Information is king in sales and a spreadsheet will help you compare and contrast where sales are more or less successful and which salespeople are managing to sell more and why. That will help peer-to-peer learning so your sales team can work together to share knowledge and build sales across the board. Without this kind of visibility, opportunities can go unnoticed and the possibility to increase revenue is missed.
“Preparation is key. Time is precious. Identify where the opportunities are,” said Hines.
Part of the process of working out where you might win new business is also asking yourself where you are going wrong. Why, for instance, do some companies buy more from you than others?
- Is it your sales message?
- Is it limited engagement with your client?
- Is it too easy for your salespeople to hit target without cross-selling or up-selling?
- Is it down to the salesperson themselves, or maybe their compensation plan?
- Is it cultural – a lack of team work and collaboration?
Likewise, when you are looking to build value for a customer, identify up-selling opportunities by understanding what is important to them.
- Show the customer what makes your offering different from the competition.
- Which customer relationships are most important and how will you gain agreement with your client?
- Are you clear about the steps you need to take to make up-selling and cross-selling a compelling option for your client.
The more knowledge you build on cross-selling and up-selling the more it is encompassed by your sales team, said Hines. In time, it becomes the way your team operates. It should be integral to the way the team thinks.
Our free, Covid-19 sales webinars, to keep sellers safe and selling, are open to everyone, not just APS members.
Click here to see our full programme of events, and book your place. https://the-aps.com/page/Events