Any business owner will attest that they are constantly on a quest to increase and accelerate profits. There’s no getting around it, a business needs to be profitable to survive, and ideally, these profits should be substantial. But how do you get to that point? What are the secrets and keys to accelerating profitability? While there is no secret formula with guaranteed results, upselling can be a beneficial technique to employ in your business.
If you’re new to the concept of upselling and don’t know how or where to get started, let these tips act as a guide.
What is upselling?
Before embracing a new technique, it’s essential to define it. Upselling, also called suggestive selling, means planting an idea or persuading customers to purchase an additional service or product. They probably didn’t come into the business expecting to want or need that product, but through marketing and the proper techniques, you can convince them that they want and need it through marketing and the proper methods.
Why is upselling so impactful to the bottom line?
Upselling involves selling a smaller or less expensive item, so you may wonder how this impacts profitability. It’s all about sales volumes, and if you can upsell to the majority of customers, it makes a big impact on the business’s bottom line. Add to that the fact that many of the items you upsell probably have a healthy profit margin themselves, and it’s easy to see what works in favour of businesses.
What are common items to upsell?
Whether you are a business owner or a customer, you have probably come across items classified as upselling. A great example is extended warranty plans, accessories that enhance how the original product is used or enjoyed, specific cleaning products for that item, etc.
What’s the best way to upsell?
Just because you’re convinced that upselling is the way to unlock accelerated profitability, it doesn’t mean you’ll be successful at it from the get-go. This practice takes a bit of finessing as you don’t want to come across as pushy to the customers. The goal is to make them believe they want the item or service and that it’s their idea – no pressure from you – the business. Think of it as persuasive marketing, which is a learned skill.
Use digital signage to further your goals
One of the best ways to upsell to customers is with digital signage. Upselling with digital signage content means you can customize the message as needed, and you know it will grab the attention of clients and customers. It can be used for new product launches, special promotions, product pictures, exclusive packages, etc.
Printed signage is much more constricting in that once you have that sign made, that’s it. You are stuck with that particular sign with that specific messaging, and there is no customizing it down the road. Once you achieve your initial results, the sign will no longer be effective; it can no longer help you upsell.
There’s also the fact that digital signage feels modern and trendy, something that tends to resonate with people. The old school printed signs are just that, old and tired.
Present it as a special offer
Another tip from the experts is to present the upsell as a special offer. For example, the customer is shopping online and already has an item in their cart. If you give them an offer to receive a discount if they upgrade to a larger product or more expensive model, they may be inclined to snap it up. This counts as an upsell because it is a more expensive purchase than they set out to make.
Compare products to help persuade customers
Then there is the product comparison trick. You can often convince customers to purchase a more expensive model/product. They will feel in control of their purchase decision, yet you have given them a gentle push. Digital signage could display the comparison.
If you are looking for ways to increase profits in a speedy manner, upselling can be the secret weapon you need for your company.
