To upsell products and services means adding an additional service to an existing customer after they’ve already made a purchase. If you think this sounds like it might be useful, you’re right. Up-selling can help you make more money by offering your customer something additional, or by upgrading them to better service. But up-selling isn’t quite as simple as asking if your customer wants fries with that; you have to consider what your customer really wants, how much they need, and what kind of upgrade will meet their needs.
Cost of acquisition of a customer
Before selling any kind of product or service, it’s important to understand how much you spent acquiring that customer. If it’s more than what you want to spend, look for ways to increase profits on your front-end sales process so that your lifetime value is worth whatever you’re paying for acquisition.
So if you paid £100 for an advert in a local magazine and got 1 booking then the cost of that client was £100, even before you fulfil the service. If you paid £100 for facebook ads and got 2 customers then the cost of acquisition was £50.
As every customer has a cost of acquisition, it is important that the return from each client is as great as it can be, both in the value they bring in for that appointment. Also, in turning them into regular clients, so that for that £100 they come to you regularly and so the cost of acquisition is much lower.
If you upsell products and services, the likelihood of that client becoming a regular and also maximising the revenue per service booked is hugely increased.
Up-selling Products
A simple way to make more money is by suggesting additional, complementary products. The key is determining which product you’re most likely to sell after discussing others.
If you’re selling clothes for example, your potential customer may be interested in purchasing different shoes or accessories. If you are a pet groomer selling brushes or scents can be a great up-sell. Hairdressers regularly sell shampoos or conditioners to use at home. More expensive purchases are also great candidates for a quick upsell of products and services.
Up-selling Services
You’ve got customers that love your service. When they come back for another visit, there’s an opportunity to sell them an additional product or service that will expand their experience. By upselling services, you’re raising customer lifetime value while improving retention.
One great way of doing it is by offering them a complimentary upgrade to try an “add on” service. Seasonal services also work well, additional special “christmas” or “summer” upgrades work super well for many service sectors. You can also tie all your marketing and promotions in with the seasons. We all know Autumn is on its way when Pumpkin Spiced Lattes find their way onto the coffee house menu.
The value that you upsell producst and services doesn’t have to be huge. A £5 or £10 add on, providing it doesn’t use high cost products or take a lot of time, can make a huge difference to your bottom line if every client opts for it.
Up-selling Bundles
Bundle two or more products or services together at a discount for people who want it all. For example, if you sell wedding photography services, bundle albums with parent copies and a print or two. In beauty or grooming 3 for 2 on add on spa treatments is perfect. Up-selling makes your customers more likely to spend money with you. But make sure your product fits well together, or else your customer might get confused about what she’s paying for.
How can Savvy help with Upselling?
The Savvy Check-In forms are great for facilitating a chat at the beginning of an appointment about additional products or services that might suit the clients. Allowing staff to follow the procedure, clients will be encouraged to book additional services without a hard sell. The Savvy shops are also perfect for generating more revenue from existing clients, making it much easier to upsell products and services even to these regluars.
Book now for a free demo of Savvy and the Savvy Check in forms and Savvy Shops
