What differentiates a “good” customer from a “great” customer? One way to look at it is by thinking of a good customer as one that makes a purchase from you every now and then. They are satisfied with your product or service and will provide a good review, but they aren’t frequent customers. In contrast, a great customer is consistently loyal to buying your products/services, is eager to add-on upgrades, and also gladly refers your business to other people.
So how can you turn your good customers into great customers? While there are many strategies to accomplish this, one particularly effective method is upselling services. Read on to learn how you can turn your good customers into great customers with this strategy.
What is upselling?
Upselling is a sales technique in which the solopreneur, side-gigger, or salesperson encourages the customer to purchase more expensive products or services, upgrades, or other add-ons in an attempt to make a more profitable sale. While upselling typically involves marketing services or products at a higher price point, it can also be as simple as exposing the customer to other options that were perhaps not considered. Ultimately, the goal with upselling is compounding profit by using the momentum of purchase.
The key to successful upselling, according to Forbes, is relevance. For example, if you run a dog walking business, offering dog grooming services would be a potential opportunity to upsell your customers because it is relevant to the service you are already providing.
Since most customers don’t want to feel like they are being sold to, another strategy to upsell your services is built-in limitations. For instance, built-in limitations work particularly well for SaaS providers whose process includes storage or bandwidth: if a user wants more data or more storage, they have to pay for it.
You can turn a good customer into a great customer by maintaining long-term relationships that open up opportunities for upselling. One effective way to accomplish this is by selling customers on a service that involves regular visits, purchases, and an ongoing relationship with your business.
For example, you can offer customers things such as warranties on products, coaching, or lessons that are all related to your original product or service. This will give them motivation to reach back out to you when they have a question, a need, or a problem to rectify. Furthermore, this will develop a working relationship with your customer, providing even more opportunities to upsell another product or service.
You can use special offers as another strategy to upsell your products or services. The most common place to upsell is on a checkout page/invoice because these customers already have their credit card ready and are more likely to make an additional purchase. Also, you can give special discount coupons or promotional offers to customers after they make a purchase. Adding the special offer to the customer receipt is simple and it gives them incentive to buy more from you in the future.
However, New York Times best-selling author Neil Patel advises businesses to be sensitive about their prices, suggesting that you need to know your customers before you upsell them. You must understand the approximate income levels of your customers. Are they wealthy? If they are, you can continually upsell them with more and more expensive products. You can still upsell expensive products if they are not wealthy, but there is a greater likelihood of being turned down. In this case, you can offer the same upsell again with payment plans. Becoming aware of a customer’s background and budget enables the upseller to better understand what that particular purchaser values, or may come to value.
MACH1 makes it easy for independent service providers (a.k.a. solopreneurs and side-giggers) to turn good customers into great customers through upselling. One app feature that can boost your upselling game is the ability to easily create and send special offers to your customers by text message or email. Additionally, you can attach these special offers to bills to entice add-on sales and generate referrals.
Along with making it easy to send special offers and upsell your services, the MACH1 app includes a slew of powerful features not typically found in an app this intuitive and easy to use. Download the MACH1 app via iOS or Android now to see for yourself how simple it is to upsell your services.