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*Originally posted via EIR Corner, Centre4Growth

EIR CORNER: MCDONALD’S MASTERS THE ART (& SCIENCE) OF UPSELLING

Every time I go through a McDonald’s drive-thru I’m struck at the consistency of the experience and how well their employees upsell. They already have my attention, I’m already committed to making a purchase, and now they are executing a final push to encourage me to spend a little bit more.

The McDonald’s example is of a transactional purchase but the same technique can be applied with any type of customer (consumer or business) or sale (transactional or complex).

Upselling is essentially adding more items/features to a single sale.

Why upsell? 

Upselling is a means to increase revenue/client per billing cycle. The cost of acquiring a client is never reimbursed. If you decrease cost of acquisition, increase revenue/client per billing cycle and increase the number of billing cycles per client, you greatly increase profits. Moreover, upselling is integral to increasing profits because it generates greater revenue from less effort.

 

TIP #1: ALL CLIENTS PROVIDE THE POTENTIAL TO UPSELL.

Include upselling as a philosophy in all marketing, user experience (UX) and customer service efforts. Undoubtedly, upselling should become a consistent part of all sales efforts.

E.g. An enterprise has requested 500 user accounts at the mid-level tier & your sales representative asks if they need some of the additional functionality provided at the higher-level account.

 

TIP #2: BUYERS PREFER GETTING MORE ITEMS FROM A SINGLE VENDOR RATHER THAN APPROACHING MORE VENDORS FOR FEWER ITEMS.

Communicate to your customers both the benefits and value of adding additional items to their purchase transaction. Focus on the means to enhance the customer experience: simplify how your customer can add to their purchase (e.g. think 1-click or less clicks) and make it easier for your customers to understand some of the additional items/features that you can offer.

 

TIP #3: YOUR CUSTOMERS AREN’T AS FAMILIAR WITH YOUR PRODUCT AND SOLUTION OFFERING AS YOU ARE.

Keep your customers from trying to guess or ask what types of additional products/features you have to offer. Anticipate what they might enjoy or benefit from based on what they’re using, what questions they are posing and what their business is.

Based on this ‘intel’ you can provide suggestions to their purchase order. 

E.g. Consider the McDonald’s approach: it’s simple and smart. They don’t offer me the same thing each time I order & they customize what they recommend based on my own requests.

 

TIP #4: YOUR CUSTOMERS ARE THE BEST SOURCE FOR FUTURE WAYS TO UPSELL. ASK YOUR CUSTOMERS QUESTIONS ABOUT HOW:

  • they use your services/products;
  • they use it within their day;
  • your product/service interacts with their other applications, systems, etc.

Also ask your customers wish-list types of items, like what:

  • do they like the best about your product;
  • do they like the least about your product;
  • are things they’d love to be able to do.

    After you compile customer feedback, it becomes the foundation for your product road map(s). The feedback is the means to enhance your product offering with additional products & services… and, of course, other ways you can upsell in the future. (Remember to choose enhancements that appeal to the majority or great percentage of your customer base.)

     

    IN SUMMARY

    Upselling should be integral to all of your interactions with current and potential customers. It is a simple technique that offers greater revenue and profit potential. Lastly, don’t forget to track your results & measure what efforts work best.

    I hope you found these tips helpful! Contact me if you have further questions on this topic or if you have a particular problem that you would like addressed in a future post.

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