5 Tips to Improve Your Online Business Revenue

Whether or not you’ve ever done direct sales, you probably are already familiar with two fundamental sales strategies: upselling and cross-selling. You may not know that you are familiar with these concepts – but as a consumer today, you have definitely been exposed to them.

Here is a brief description of each term, plus a few examples of both:

Upselling is a technique used to persuade the customer to buy a better version of the products or services about to be purchased.

Cross-selling is a strategy used to add more products or services to the original purchase.

Examples

1) Upselling: “We have a special today of a double cheeseburger for $.60 cents more – would you like to buy that instead of the single burger?” 2) Cross-selling: “Would you like to add fries and a coke to that cheeseburger order?” 3) Upselling: “The mid-sized sedan is a popular vehicle, but our luxury sedan comes with added safety features and a better warranty.” 4) Cross-selling: “For two hundred bucks more, I can throw in an engine block heater and a front license plate bracket with that new sedan.” 5) Upselling: “This TV is great, but have you seen the latest model? It has added features I think you’ll appreciate.” 6) Cross-selling: “That TV is great – but based on what you’ve been telling me about your family, you’ll probably want to take a look at our complete home theater system. It will change your home movie-viewing experience forever.”

Do you see the difference?

When done right, upselling/cross-selling is beneficial to not just the seller, but the customer, too. If you present options that you know will benefit your customer, everybody wins. How do you do that? Well, you need to take an intuitive approach. Listen to what your customers have to say about their wants and needs. Put yourself in their place; if you were shopping for an economy car, would you want to hear about the luxury SUVs on the lot? Probably not. But you might want to know about the latest hybrid that could spare you from sending a ton of money on fuel…right?

Another advantage of upselling/cross-selling is that it’s easier to do than to sell to an entirely new customer. When you are marketing to a new lead, the probability of closing that deal is five to 20%. When you’re selling to an existing client, that percentage shoots up to 60 to 70%. So upselling/cross-selling is really a more efficient way to sell.

Here are our top tips for upselling and cross-selling like a pro.

Tip #1: Use the Technique in Moderation

You’ll want to maintain the trust of your customers, and you can’t do that if you make them feel overwhelmed by the upsells/cross-sells. Too many choices will confuse your customers, and that could backfire on you. You could cause your customers to become suspicious and resentful if you throw too many options at them – and they might just give up on the idea of buying anything at all from you. Keep the options simple and straightforward.

Tip #2: Bundle Relevant Items

This is a strategy that takes the “frequently bought together” concept to the next level. You make the shopping experience convenient for your customers by packaging necessary/relevant items together.

This is another instance when you need to be careful about your approach, though. You don’t want to offer irrelevant items or services that your customers aren’t likely to find enticing (so don’t try to dump your unwanted inventory on them). If you do that, it’s insulting and very counter-productive. Instead, offer valuable add-ons that your customers will find useful. A good example would be to sell WordPress templates + plugins + logos together. These are all things that customers in the market for a plug-in or template would appreciate in a bundle.

Tip #3: Know Your Customers

Think of your favorite restaurant. The owner or head waiter at that restaurant probably takes the time to get to know your likes and dislikes. Based on that knowledge, the owner/waiter makes suggestions based on your personal preferences.

You should do the same thing on your website. If your goal is to get people to sign up for your newsletters – but no one is responding to your pop-up box – try offering a free e-book on your landing pages when people register for the email list.

Tip #4: Don’t Overdo It

Upselling/cross-selling only works well when you are solving your customers’ needs (and it works even better when you make them feel privileged about receiving an offer). If you offer a discounted free shaving kit to all of the customers who buy your designer men’s cologne, many of them will appreciate that they are getting a deal that other customers aren’t.

Tip #5: Timing

Timing is always a crucial aspect of sales. You should only upsell/cross-sell when you have all the necessary information to secure the first order. This means that the shopper has already committed to buying and is less likely to abandon the order altogether. If you try to sell additional items too early in the shopping process, you could easily turn a customer off and thus lose the entire sale. So remember to wait until the customer has already committed to the sale by giving contact and financial information – then, describe the benefits of the additional products/services you are trying to sell.

Wrap up

If you want to improve your online business revenue, give upselling/cross-selling a try. This is a marketing strategy that has worked for countless businesses and entrepreneurs, and it could serve your blog or business well. Just remember to utilize the tips I’ve illustrated here, so you can get the most from your upselling/cross-selling efforts.

Article originally appears on - http://www.buildthis.io/a/upsellingcross-selling-5-tips-improve-online-business-revenue/

http://www.buildthis.io/a/upsellingcross-selling-5-tips-improve-online-business-revenue/

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