Do you want your salespeople to become World Class? Then you should teach them it’s what they do after the customer says “yes” that truly matters. Upselling is a surprisingly easy thing to pull off when approached properly and it’s often the difference between a company that subsists and a company that thrives.
When I work with new salespeople, I find that most are extremely focused on the one-off sale. They get tunnel vision. They’re so focused on getting the customer to initially give in that when it happens, they think they’ve won.
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Sure, they’ve earned the company money, put some commission in their pocket, and they are one step closer to their goal, but being an effective salesperson means recognizing that getting a customer to say “yes” is only the beginning.
Upselling is the Secret to Lucrative Sales
Upselling is where true sales greatness is earned. When you upsell, you are getting the customer to purchase more expensive items or upgrades, leading to more revenue and higher profits. This is why upselling should be a major aspect of your team’s sales strategy. You know what makes upselling truly easy? Three words: Configure, Price, Quote.
CPQ makes upselling a seamless part of the sales process, which makes it a must-have addition to your team’s sales toolbox.
CPQ Gives Insights into Customers’ Needs
A successful upsell requires you to know your customer inside and out. More than that, it requires the salesperson to know the customers’ wants, needs, and desires. CPQ makes upselling simple because it makes this customer familiarity automatic and fluid.
The software can track customers’ previous orders (if applicable) and make purchase recommendations based on that data. This removes the guesswork and makes the salesperson come across as caring and attentive, all of the qualities customers covet in qualified sales reps.
Upselling Techniques of the Past
Before software streamlined the upsell process, salespeople had to make recommendations based on memory and knowledge of things like inventory, price points and a whole slew of other information. This required extensive training, experience and an ability to think quickly on one’s feet.
To make matters even more difficult, successful upselling required a salesperson to remain forever cognizant of the rule of 25. This rule states that you should never upsell items or upgrades that amount to more than a 25% increase on the original order. All of this had to be tabulated in the salesperson’s head, many times while the customer was standing there face-to-face. Talk about pressure.
Today, there’s no need for such Rain Man-like rapid and running calculations. CPQ makes upselling simple. With a CPQ platform, all of this information is tabulated instantly, allowing even the newest salespeople to produce upsell suggestions like a seasoned pro.
For an upsell to be effective, the items pushed must be limited in scope. After all, you don’t want to overwhelm the customer, causing him or her to bolt. The products or services should also be targeted. That is, they should meet the needs of the customer just as much – or more – as the original offer.
This is a monumental task for the salesperson who is still wet behind the ears. It requires knowing the organization’s inventory and price data by heart. The salesperson must be so familiar with the various upsell options that he or she can produce them at the drop of a hat, quicker than the customer has a chance to decline an offer.
With CPQ, all of these concerns become yesterday’s news. As long as the software is configured properly, the salesperson no longer needs to become a walking encyclopedia. Nor will success be dependent on the speed of a salesperson’s instinct.
The software will produce relevant upsells quickly while the salesperson is creating the proposal for the preliminary sale, all while configuring prices that remain in accordance with the original offer. These upgrades are tailored to the individual customer, producing that wow factor that satisfies the customer and increases loyalty in one fell swoop.
CPQ Makes Upselling Simple
Imagine your sales force being able to sell add-ons, upgrades, and bundles the moment the customer nods their head in the affirmative. While other sales organizations are focused on single sales to meet the quota, your salespeople will be rising through the ranks and maximize revenue.
With the probability of selling to an existing customer being at the high end of 70%, upselling should be pushed – though tactfully – at every opportunity. Don’t merely leave the process up to your salespeople. Put CPQ in their corner and have the job done right.