Selling To Customers You Know Is Easier Than Selling To Strangers
There’s an old adage in sales that selling your products and services to existing customers is easier than selling them to new customers.
I totally agree with that sentiment, you can and will always have better ratios with existing customers when it comes to comparing cost of acquiring new customers and gross profit. You simply don’t have to market or sell as hard with existing clients.
I like to take this one step further though and start the upselling process early.
When you’re busy closing the deal, it’s simple to ask them if there is any other things you can help them with. I like to discuss their current arrangement for products or services that I know I can offer alternatives for. In this way, I can offer an incentive to switch, upgrade or purchase something they wouldn’t normally have considered – it an opportunity to create a deal that is too sweet to resist.
Using this technique in my sales career I maintained a higher gross profit average per hour than any other sales person. Simply put, I was the best person at linking a sale through our whole business and thus my GP/hour was higher.
I’ve spokem to sales people that use this technique all the time and swear by it as well. One gentleman uses training sessions with existing clients (and even groups of existing clients) to showcase new products and services his company offers but may not be sold to customers initially. This way he gets the benefit of having their full attention in the training session they are conducting as well as having a captive audience for showing off some of the other products on sale and relating them back to their client’s needs.
Work Them Like Putty, Timing Is Everything
There is one key to making this up selling technique work. In order to link your whole business through the one sale you need to get your timing right and deliver the pitch more casually than your original sale.
I call it the “while I’m here” effect.
The while I’m here effect basically means they are in a more willing and accepting mood than prior to accepting your offer. Once they’re sitting down and we’re busy closing the sale, that’s the opportune time to ask for an up sell.
Think about what other services or products your business offers for sale. Ask your clients if they have these things taken care of. If they do, ask them if they’re happy with their current provider and mention a potential deal you could make if they were to buy some more items from you.
Because you already have the first sale locked in you should be able to afford (literally) to be more flexible with the pricing on your later offers. Make it enticing, after all the cost of acquiring their business for this new sale is essentially $0.
Learn From The Masters – Self Referrals In Action
Think this technique of linking sales across your whole business is new? Think again. Amazon and other online companies have been using this technique for over a decade to build their business online and other offline companies have been using this technique for even longer.
Think carefully about how you can build your offer as you’re closing your sale. By milking the most out of your customer while they’re there you can boost your gross profit margins incredibly. It seriously adds up.
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