10 WAYS TO CROSS-SELL AND UP-SELL
By Jim Domanski
Cross-selling and up-selling a purchase is a relatively simple task
provided you follow some simple rules. Here are 10 tips I've collected.
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 serve to 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, you should be cautious in your attempts to exceed that order
by $25. 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 TSR
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 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 is all right,
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 garden hoe, however, does not.
6. Familiarity Breeds Success. Simply put, 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 above). 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, this is perhaps 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 must determine with which blazers
the tie will match.
8. Train to Avoid Pain. Ensure that you are trained on the products or
services being 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, the 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 telemarketers only after you are
sure of the test results.
10. Finally, E=MC2. What this means is that 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 a little extra with
each sale. The other "C" stands for Control. Whether you are a TSR 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 those areas, make changes.
This is a smattering of tips when it comes to cross-selling and up-
selling. Some of it is common sense, some of it is new. Review these 10
tips and give it a try.
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This resource is (c) 1996 by, Jim Domanski, President of the
Telemanagement Consulting Group, a telemarketing consulting and
training firm, located at 613-591-1998. It is excerpted from
Telephone Selling Report newsletter.
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