Posted on: Monday, March 4, 2002

60 SECONDS ON BUSINESS
Persuade customer to upgrade selection

By Dr. Drake Beil
President, Solutions Inc.

Do you want bigger profits with lower costs from the same number of customers?

Focus on upselling customers by showing them several levels of quality, and then sell up by making higher quality more desirable.

Out of every 10 customers, only one or two might say yes to your offer, but that 10 percent to 20 percent of increased yield can be the difference between black and red ink on your bottom line.

Giving customers the choice of something better is the essence of good upselling. You're helping them to get a better experience because their needs get met.

When you create the thought, they can envision themselves with the benefit, and you're on the path to upselling them.

When you can tie their new choice to a value, it becomes even more desirable. For example, if the car rental company will let you drive off in a luxury car for only $5 or $10 more per day, or if you could have the suite or the ocean view for a few dollars more per night, you just might do it.

When was the last time you treated yourself to a little luxury? How did it feel? Each customer who is upsold feels like they have received higher quality from you.

Their perception of your service quality improves, and your profit improves because your advertising and marketing costs are the same, but the yield is greater.

Reach Dr. Drake Beil at drake@60secondsonbusiness.