Here at Payaca, we’ve put together our best advice on how you can upsell to increase your businesses profitability. Before we dive in, it’s worth understanding exactly what upselling is and how it improves profitability.
Upselling means selling a more expensive version of a product or service that the customer already is buying. For example, if a customer were looking to replace their windows with new double glazing, they could potentially upgrade to triple glazing instead. If the customer decided on the triple glazing over the double glazing, this would be an upsell. Upselling increases profitability because the customer spends more money.
There’s also a method called cross selling, which is similar to upselling and sometimes just as effective. Cross selling describes when a salesperson recommends additional products related to something that a customer is already buying. For example, if a customer is having new roofing installed the salesperson could recommend adding new roofline features, such as guttering, at the same time.
Research has proven that it’s easier to upsell to an existing customer than it is to sell to a new one. It’s said that, on average, the probability of selling to a new prospect is 5-20% whereas the probability of selling to an existing customer is 60-70%. That is a huge difference, and a good indication of just how profitable upselling can be.
Tradespeople often face the same conundrum when it comes to upselling; it’s an opportunity to get additional business, but you’re reluctant to feel too pushy, or insistent.
Here at Payaca, we help your business offer what we call interactive quotes. This means your customers can build in more choice and optional extras to their quote, allowing them freedom of choice and the chance to upgrade in a single click.
In turn, this also creates opportunities for you to upsell, without having to verbally offer it, which is what a lot of tradespeople sometimes fear comes off as being a little pushy. Letting the customer interact with their quote, in a simple and user-friendly way, will help them feel more in control of the decision they’re making and could help increase your revenue if they opt for extra upgrades. Why not watch our interactive quote demo video here.
We also offer behind the scenes functionality for tradespeople using our interactive quote system. You can offer bespoke discounts, add and remove options, make edits and access profitability information all from within our easy to use mobile app.
Who doesn’t want their life made easier? One approach you could take, that isn’t too pushy, is suggesting additional checks and/or products that will potentially make your customers life easier. For example, a heating engineer who has been called out to take a look at a faulty central heating system may ask if the homeowner has considered looking into upgrading to a more advanced thermostat, such as the Google Nest.
Cultivating a deep understanding of your customer's priorities is important for building trust right from the start. If you know what your customer values and where they want to go, then you can identify areas where additional products and services can help down the line.
When you're proposing an upsell, it's especially important to provide transparency. Give your customer a complete breakdown of what you're proposing and thoroughly explain the cost and timing involved. If a customer knows where their hard-earned money is going, they’ll feel more comfortable about investing more money in your products and services.
Payaca offers job management software, as well as finance solutions, for service businesses focused on boosting your profits. Why not get started by sending a demo quote with us today? Or contact one of our friendly team if you’d like any more information. Go through our website or call us free on 0333 050 94750.