How cross-selling increases revenue and customer satisfaction

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What is cross-selling

One of the easiest and best ways to increase your business’s revenue and profitability is by cross-selling more services to your existing clients.

The classic example of this is “would you like fries with that?” About 25 years ago, Mcdonalds started consistently offering add-on menu items to every customer without assessing individual customers’ needs. That strategy has had a massive impact on the company’s profits.

Cross-selling is persuading your customers to buy something additional (not to be confused with “upselling”, which is persuading your customer to buy something more expensive). The focus is on knowing what your customers would genuinely be interested in at that exact moment. It is all about timing and relevance.

“Would you like a drink with that?”

“Is that regular or large?”

Notice how these small incidental questions, when asked at the right time, don’t sound pushy?

The incremental revenues due to these small cross- and up-sells do wonders to boost the company’s bottom line.

Approaching existing clients to cross-sell

Never underestimate the value of your current happy customers. We all know it costs a lot less to keep a client happy than to find another one. It costs a lot less to sell more to them than it does to find new clients too. Roughly x5 less.

How is cross-selling to current customers different?

Cross-selling to previous customers increases customer satisfaction due to purchases being relevant to their needs or wants.
Cross-selling to previous customers increases customer satisfaction due to purchases being relevant to their needs or wants.

These individuals already understand your reputation, your skills, quality of advice, services, products and brand. From these things, a customer is already convinced.

They know about you, but do you know about them? 

The key is to demonstrate your understanding of their needs and bring to their attention relevant and useful services that you provide, at the right time.

This will reflect the already good relationship you have with your customer, making them more emotionally attached to your business by understanding their needs and wants.

So, what’s stopping you?

Promote existing products/services to your current customers by cross-selling.

Of the many clients you have worked with recently, how many only know about the specific products/services that they actually brought from you?

Do they know about the other products or services you provide?

If you don’t know the answer, please don’t assume they do. 

When people buy something they are usually focused on that one thing.

You’ll generate more business by simply educating and telling your clients about the other services you offer.

What clients pick up from your marketing versus what you tell them, can often be very different.

Communication with your customers plays a key role in cross-selling and understanding how much your customers know about your offerings. If you have a product or service that no one is buying, maybe it’s because customers don’t even know that you offer it.

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