Wednesday, February 23, 2011

The Downside of Upselling

By: Laurie Brown

Like all of you, I hate the idea of leaving money on the table. I like the idea of upselling. Simply put, upselling is offering your customer the opportunity to add additional NEEDED items to his or her order. My guess is that you have experienced upselling in your daily life. Fast food joints are notorious upsellers - constantly asking, "Would you like fries with that?"

So what is the downside of upselling?

It's Boring. When your upsell is routine (as in "would you like fries with that"), your customer not only expects it, but is most likely not even listening. Even if you have a process or script that you have to follow at your business, that doesn't mean that you can't have some fun and be creative. Even in the case of fast food franchises, where the cashier is required to ask the customer to add to their orders, the cashier could say something different like, " Hey, you look hungry today, would you like add our crispy fries to your order?". Surprise your customer with the unexpected.

It's Impersonal. My friend Peggy says, "I am offended when I am 'cookie-cuttered'. At least use my name, that way I know that you know who you are talking to." When you offer the same upsell to each and every customer, you lose the opportunity to make your offer personally meaningful. Every time you offer your customer an additional item, you should be sure you understand your customer well enough to give them something that has value to them.

It's Annoying. When my husband goes to get his morning coffee from his favorite coffee shop, he just wants his coffee. Even though he has been going in every work day for the last two years, they still ask him if he would like a scone. Every day for the last two years, he has turned them down. If you know your customer doesn't want what you have to offer -- stop asking. Offer something else. Or better yet, uncover their buying motives by asking questions.

It's Not Done Correctly. Most of the problems with upselling come down to this issue: Good upselling is a combination of process and attitude. It is essential that you know your customer well enough, so that your offer has value in their lives. That kind of deep understanding [of them] comes from having a process of engaging them, asking questions, and digging a tad deeper.

And it needs to be done with "true caring." Don't offer them something they don't need or want just to make more money. "True caring" means you genuinely want to help your customer, and you only offer that which has real value to them. That's integrity - and that leads to referrals and lifelong customers.

Who benefits from upselling? Both you and your customer should benefit. Sure, it allows you to make more money, but if done correctly, the true benefit is to your customer. You can help your customer become aware of additional products and services that will meet their needs and solve their problems.

If you are in the customer service business, you should consider upselling as one more way of helping your customers. Your job is being a problem solver. What are your customer's problems? And how can your products and/or services solve those problems?

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