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Tag Archive for mystery shopping

How to Upsell and Cross-Sell

customer feedback, customer service,

Upselling and cross-selling are both beneficial for any industry for one simple reason: more revenue.

But you must be strategic in how you approach your customers or they will see right through the “You may also like …” sales pitch. To really see success with your product suggestions, you must strive for the ultimate goal: customer delight. When you can convince your customer that your suggestions are for their benefit, then you can master the art of upselling and cross-selling.

Keep reading to learn how to use upselling and cross-selling to your advantage.

Upselling vs Cross-Selling

Upselling is encouraging the purchase of anything that would make the primary purchase more expensive. Cross-selling is encouraging the purchase of anything in conjunction with the primary product. For example, it would be upselling to offer the purchase of batteries with a camera, but it would be cross-selling to offer the purchase of a scanner with a printer.

Helen Campbell‏, founder of business coaching and training company Jazz Cat, advises her clients to tailor their offering to the client’s specific needs. “By upselling or cross-selling your services appropriately you can help your client achieve their goal, for example, more time, peace of mind, or a solution to a problem,” she says. It is all about adding value, and the difference between ‘selling’ something to someone and adding value is huge. “The key skill is to listen, hear your client’s needs and offer innovative and practical options,” says Campbell.

It’s worth keeping in mind that upselling can be 20 times more effective than cross selling, probably because once they have a specific purchase in mind customers don’t want to be distracted by something else. However, something that makes their first purchase better has far more chance of encouraging them to buy.

One of the golden rules of upselling is to ensure that it is highly relevant or complementary to the current purchase. “It’s the jewelry, the cardigan, the shoes to go with the dress. It’s the better gadget with more features,” says Marie Brown, founder of Beyond the Kitchen Table, which works with small businesses to help them grow. “It might be ‘we also have this gadget that can also do X, therefore saving you time or the purchase of another gadget’,” adds Brown. “I recently bought a more expensive printer on the basis that the ink would cost me a lot less over three years.”

And upselling and cross-selling is not just for retail. It can trickle into other businesses…for example, travel agencies. Pam Smith, leisure manager at Frosch Mann Travels in Huntersville, North Carolina, notes that “Travelers have a tendency to default to the product they’ve done before. If they’ve cruised before, for example, and enjoyed it, they might assume a cruise is best for their next trip. But that’s not always the case—we need to have those conversations about what they want to see and do to figure out the best option.” This is the heart and soul of travel professionals—using your expertise to point travelers in the right direction towards their best possible vacation.

Just like any retail business, Smith pays careful attention to her clients’ feedback on previous trips to see where there might be an open window to sell a more premium travel experience. She says, “My favorite is ‘We loved the trip, but the hotel could have been a little nicer or the transfers better.’ Then I know there’s an opportunity to go for something more upscale.”

She also listens carefully to the origin and background of a vacation idea to see what add-ons might be appropriate. For example, she recalls working with an older couple who was going to go on a river cruise in Europe. “They told me they didn’t anticipate ever being able to go back to Europe after this,” says Smith. “To make the most of their time there, I also suggested a guided vacation for after the river cruise. They loved the idea of seeing more while they were there.”

Opportunities for upselling and cross-selling exist in every realm of business; you just have to be aware and ready when they arise. By using your knowledge and expertise to identify the right experience for each client, you will create a loyal client base and continually grow your business.

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Digital Customer Experience

customer experience

Why are customers willing to pay more for a better experience?

In a recent study called The Disconnected Customer: What digital customer experience leaders teach us about reconnecting with customers” by Capgemini, a significant gap was found between how businesses and consumers perceive the quality of their customer experience.

Of the organizations surveyed, only 3 out of 10 match customer expectations. Research also revealed over 80% of consumers are willing to pay more for a better experience. This holds broadly true across sectors and countries, with around one in ten consumers (9%) actually willing to increase their spending by more than half!

In today’s digital age, regardless of whether we’re buying in-store or online, consumers now have an almost unlimited amount of information at their fingertips in order to make a decision. If you can’t find a review for a particular product or supplier, you’re probably going to immediately question its quality. Third party endorsement from other consumers and industry experts such as Trip Advisor and Amazon are an absolutely essential ingredient in sales conversion.

This wealth of information also helps determine where a customer is going to get the product or service from. If Company A is the cheapest option but Company B offers free delivery, free returns, a 24-hour helpline and a 3-year warranty, it’s fair to say that savvy shoppers are going to opt for the pricier one, especially if they feel it is worth the extra value.

Recently, Capgemini found a distinct correlation between a high quality of service and price and revealed that 4 in 5 people are willing to pay more for a better customer experience.

So why is this?

 

Ultimately, it comes down to the fact we want our voices heard and our loyalty rewarded, and a great customer experience makes us feel like we have achieved this. In most customer experience circumstances it comes down to speed, convenience and low effort required from the customer.

As an organization you need to invest in the digital customer experience. Think about what your customers value and what they care about. What is the connection between you as a brand and your consumer? Internally, the data and touch points need to flow through your organization and allow you to manage and meet the expectations and desires of your customers. What would be your ideal digital customer experience? Determine that and you can reap significant rewards.

 

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How to Deliver Superior Customer Experiences

WOW customer service

First, let’s define customer experience. In essence, customer experience is the customer’s perception of how well you live up to your brand promise. If you fail to meet the expectations you have created, then that brand promise can become your undoing. With the influence of millennials and the power of social media, customers can cause more damage to your brand than ever before.

Most businesses want to create a compelling brand promise… otherwise what’s the point of having a brand? So how do you deliver on that promise? Check out these tips for building a superior customer experiences.

Listen to your Customers

Your customers are talking, tweeting, posting and livestreaming. They’re sending information about themselves and their interests into the world. Use these conversations to make meaningful decisions that improve the customer’s experience.

Active listening is the first step. At Microsoft, their social listening software pulls in about 150 million conversations each year. After cleaning out the irrelevant data, over 5 million conversations are handled personally. Ideas, suggestions and needs from customers are processed and forwarded to development teams, to be turned into product improvements. And once a product has been updated, the company circles back with those customers, letting them know. These customers, in turn, organically advocate on behalf of the brand and market Microsoft products to their networks.

The Knock it Out of the Park Strategy

Some brands simply deliver on their brand promise so spectacularly well that the standard of customer experience can only be admired. This is the “knock it out of the park strategy”. There is no brand that embodies this strategy more than Disney. They simply go further to deliver on their brand promise than almost any other company on the planet. Their guidelines: greet and welcome every guest, make eye contact and smile, seek out guest contact, provide immediate customer recovery, and display appropriate body language and thank everyone. This strategy is the hardest to implement and may be expensive to maintain, but it is the most powerful strategy and brands that adhere to it tend to stand the test of time.

The Over Deliver Strategy

If you promise a customer something and you deliver over what you promised, that is a great customer experience. The emphasis here is going that extra mile to surprise a customer with the quality of your service or product. Take Lidl for example. Lidl is a German-owned discount supermarket chain. Their products are typically sold out of their transport packaging rather than being stacked nicely on shelves. So how does Lidl over deliver? On the quality of their own brands. The competitive pricing and brand quality result in a very positive experience.

The Create the Perception of Over Delivery Strategy

Very similar to the previous strategy, but different because the under promising is more intentional than the over delivering. There is a hint of deviousness about this strategy, but if executed well it can be very effective. The aim is to promise customers less than the company normally expects to deliver so that average performance appears to be over delivering.

The Be as Honest and Transparent as Possible Strategy

This strategy involves telling customers exactly how things are going to go before it happens. By preparing the customer ahead of time, even if they dislike a situation or experience, they aren’t as likely to spread negative feedback because they were informed upfront. This is the purest strategy in the context of managing expectations. Wagamama is a hugely successful Japanese themed casual dining out chain of the UK. When you order your food the server informs you: “Because everything is cooked fresh, your dishes may be delivered to the table separately.” If that were to happen in any other restaurant, you would be fuming. But it becomes okay because Wagamama warns you as soon as you sit down. Transparency can be hugely valuable if used properly, and this is an excellent example.

Conclusion

The key lesson here is that branding and the creation of customer expectation are enormously important. Whichever one of these strategies you choose to employ, your entire organization needs to be geared up to execute on it. It only takes one employee to ruin the experience of dozens of customers and risk getting a whole host of negative reviews.

 

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