Would you like fries with that? We’re sure you’ve heard that line before but did you know McDonald’s was creating a cross sell opportunity when they asked if you would like fries with your burger? Chances are you probably had no clue, but every time a burger joint offers you fries or a soda with your meal, they’re further capitalizing on a sale they’ve already made.
If you hadn’t noticed, they’re pretty successful with the cross sell. We eat a lot of fries in America.
What is a Cross Sell?
A cross sell is meant to offer products and services that serve as a natural complement to things we already planned on buying. The cross sell should feel like a natural addition to your purchase instead of a forced purchase. The more time you spend thinking about your products and services, the more likely you are to develop add-ons that make sense.
When you order burgers, you naturally want fries.
When you order ice cream, you naturally want sprinkles or a cone.
When you pay for business strategy coaching, you naturally want sales coaching to maximize the effectiveness of the strategy coaching you’ve already paid for.
Cross sells aim to maximize the value of your original purchase, not take away. They’re harder to sell on their own which is why they’re best when partnered with core offerings. Cross sell items aren’t meant to trick people, but to increase the value of your customers purchase along with your bottom line and profit margins.
Examples of a Cross Sale
Let’s look at a couple of examples of what common cross-sells looks like-
Ex 1 A mother of two pays a personal trainer to help her get in shape for the summer. The fitness trainer then partners with a vitamin shop & nutritionist to sell her supplements and healthy pre-made meals. This is a good example of a cross sell. Why?
Because the mom of two would most likely not pay for supplements and healthy meals if she wasn’t already paying for physical training. The personal trainer capitalized on a natural compliment to his services.
Ex 2 Tim walks into a Verizon store and buys the latest iPhone. Before Tim checks out, the cashier asks him to pick between three cases for his iPhone. Tim would never consider buying a case unless he purchased the iPhone. He eventually planned to buy a case to protect his investment, but since the retailer offered the case (using suggestive selling) he’ll likely purchase one before he leaves the store.
The case works as a perfect complementary cross sell.
Anytime an opportunity presents itself, you should try to offer a cross sell with your sale. After all, the worst that can happen is the customer says no.
Where Do These Fall In The Funnel?
Now that we’ve broken down up-sells, cross-sells and down-sells, the million-dollar question is where do these all fit in your sales funnel? Ready for the billion-dollar answer? ANYWHERE!
There isn’t a perfect spot in the funnel for an up-sell, down-sell, or cross-sell. It all depends on the funnel and your offers. If your core offer comes after four email exchanges, you should probably include downsells in the fifth, sixth and seventh emails. Think about the funnels you’ve been in, knowingly or unknowingly at the time. Do you remember when you were offered additional products and services? If you can remember, and they were successful, try to replicate them in your business.
The key to keep in mind as you craft your ancillary offers is that they are all reactional to something else. They’re reactional to someone purchasing an offer (offering an upsell or cross sell), or reactional to someone declining an offer (offering a downsell). These offers happen when they make sense during your unique sales cycle.
Going forward, try to recognize when someone is trying to upsell you, downsell you, or offer you a cross sell. Being able to identify these offers when they’re happening will help you create better offers for your own business.
Reactional Cross Selling
The last time you said no to an offer, were you offered an additional discount or extra value? The last time you bought something, were you immediately asked to upgrade or purchase something else? The answer to both of these questions are more than likely yes and both of these are reactional offers to an action you took or did not take. Help guide your customers’ decision-making process by appropriately reacting to their moves.
Below are three quick examples of reactional offers that have been proven to increase business revenue over time.
Ex 1 When you try to leave a website, you receive a pop up asking if you’re sure you want to leave that includes a new offer.
Ex 2 When you purchase a service that helps you build a course and shortly after you’re asked if you’d like to purchase a service that helps build your sales funnel driving people into your course.
Ex 3 When you show interest in a free coaching call but you’re not quite qualified to pay for thousands of dollars a month in coaching, you’re offered a self study, self paced course.
In each of these examples, the customers moves are met with counter offers to keep them in the sales cycle.
Start planning your product offerings with successive up-sells, down-sells and cross-sells. Your products should work without you to free up your time. The goal is to offer your time as a premium service, not an ancillary one.
If you’d like to know more about implementing your upsell, down sell or cross sells, just contact My Clone Solution for a free consultation today!
What should you do when you need to overcome objections in your sales process? Do you have a plan of action when your warmed lead won’t buy your core product? Do you give up when your lead cannot afford your offer or do you get clever?
Our suggestion? You need to get clever. Master the art of planning for a downsell. Just because someone can’t afford your core offering, doesn’t mean they are not willing and able to purchase other offers from you of lesser value. If your first product or service doesn’t convert the way you imagined it would, just step back and listen to your customers.
We make it sound simple because, well, it is simple.
An Example of a Downsell
If your $1000 a month coaching program with a 6-month retainer is too expensive for a lead, offer something of lesser value with a similar purpose. $6000 is steep for many, but a $1500 self-study course may be more attainable for your leads (especially with a payment plan).
Offering the less expensive study course would be considered your downsell. Taking yourself and your time out of the equation allows you to spread your resources further, opening the door for greater future profits. Not to mention, some people truly do enjoy the DIY aspect of certain training programs. Don’t be afraid to offer product variations for different types of clients. There’re different strokes for different folks. All because the initial offer was too steep for the client doesn’t mean that you can’t offer second or third down-sell proposals that are more in line with your customers’ current needs
Struggling? Keep This In Mind
The most important thing about a downsell is its ability to keep a lead in your sales funnel for future offers and promotions. All because someone isn’t willing to buy today doesn’t mean they will be unwilling to buy in the future. Staying persistent and on the customer’s radar increases your chances of future conversions. Here at My Clone Solution, we like to focus on the long game, not the overnight success.
If someone is interested in your core product, figure out what is it about your core product that entices them. Take the time to understand your potential customer’s desire then craft a “lite” version of your product to down-sell them into at a price point that’s profitable for you and undeniable for them.
Something common that we hear from coaches is that someone want to “pick their brain” over a cup of coffee but doesn’t actually want to pay for their time. How annoying!! If this is a problem you’re currently running into, you should do one of two things. Either start to target more affluent clients who’re willing and able to pay for your services (this is a whole separate blog topic) or the easier option, create a private Facebook group where you host open office hours but only to paying members.
With this version of the downsell, clients are able to get your specialized attention without the hefty price tag and you as a business owner now avoid giving away your time for free. Good deal, right?
The upsell and downsell are powerful tools that you can easily take advantage of to grow your business immediately. With time, planning for a downsell will be one easy step in a flawless sales process. Stay patient. Practice makes perfect!
So, what are your sales process mistakes? You’re assuming. In Ben’s world, the first rule of sales is that there are no assumptions. Everything needs to be ruled out by questions. Asking questions helps you truly understand if you’re able to help a potential customer or not.
For most of us, those assumptions come from a place of fear. This fear prevents you from asking the right questions.
Sales Discovery Questions: The Three Questions You Need to Ask
These three questions are going to help you avoid mistakes in your sales process. Why? Because they let you know if the person you’re talking is the right person to sell to. Not everyone you meet will be a good fit for the product or service. Most sales process mistakes are rooted in the idea that you just need to make a sale instead of finding the right customer.
Are they the decision-maker?
Can they afford the product?
Will they benefit from the service?
Every question in the sales process is creating movement, qualifying the customer, and telling you whether or not you can truly serve them. By confidently asking questions and overcoming the fear of rejection, you’ll find that you stop talking to unqualified customers and start signing qualified customers quicker. You won’t experience sales slumps when you’re constantly discovering people who actually want and need your product.
In short: Asking questions will improve your sales because it will improve your knowledge. Knowledge is power! The more you know, the easier it is to find qualified prospects. In our next segment, we’ll be discussing why it’s so important to ask questions in the sales process. For now, catch up on our last videos for a few golden nuggets that will help you improve your sales:
Are you planning for upsells? When you have an upsell for your product or service, that means you have a logical next step for the buyer. Customers want to know where to go next after the first sale. If they are left satisfied, they are going to want more product from you. After the sale, it’s important to continue to provide value and entertainment to create raving fans.
A continual return on the customers’ investment is essential. If your product does not have an upsell into the next offering, you need to either create one, develop a business model where your customer needs to continue to work with you, or partner with someone else to offer additional resources through a referral program. If you already offer multiple products, make sure each of those products has an upsell into another offer. The goal is to continuously have these clients purchasing from you or wanting to work with you.
Examples of Upsells
Need help planning for an upsell? Check out some examples of what a continuous upsell looks like in a sales funnel.
If you have a free guide lead magnet, the immediate upsell would be to your book. If your book is 10 steps on how to do something or “The Complete Roadmap to Something,” create a checklist for completing it. Follow up the checklist with the explanation of each step in a book. You now have an introductory lead magnet in the form of a quick checklist guide and an upsell to your tripwire in the form of a short book for $19 or $20.
After sending a few emails to continue to keep the new customer warm after the sale of the $19 book, you should be able to sell a number of your customers into a $300 assessment or service.
Out of those who purchase your $300 assessment, you should be able to convert a percentage of those into a $1000 monthly coaching program if you were able to provide enough value in previous upsells.
While these customers are in your $1000 a month coaching program, you’re able to upsell them into other a la carte items as well as quarterly reviews and assessments. This would result in the creation of a membership platform with recurring revenue, all from a free lead magnet guide.
Conclusion: The Upsell is Your Best Friend
By now, you’ve got a pretty good idea of what multiple upsells should look like during a sales funnel. You’re continuously making offers with increased value resulting in the potential of additional sources of revenue. Some argue that down-sells are easier to execute than upsells. We believe it’s all a matter of perspective. Follow up with our other posts where we deep dive into downsells and what that could mean for your business.
When it comes to your product or service, we sell them because they provide value to its user and gratification for us, partly in the form of monetary compensation. When you’re trading your time for your craft, whether that’s developing the product or making the sale, everyone’s goals are to maximize their profits and minimize their time spent. That’s where upsells, downsells, and crosssells come into play.
When you’re selling a product or service, if you can find ways to maximize your profits without compensating your quality or customer service, you do it. Providing related products and services while someone has entered buying behavior increases the chances of a bigger purchase.
When Does an Upsell Occur?
An upsell occurs when you’re able to convince a buyer to purchase a product that is more expensive than the one they initially planned. You’re able to do this by providing more value than the consumer expected.
When Does a Downsell Occur?
Downsells happen when you’re able to convince a buyer to purchase something of lesser value than they originally expected. Downsells are easier to take advantage of because you have already established trust with the consumer. Suggesting that they purchase something with a smaller price-tag is a reasonable ask after they’ve already paid for something pricier.
What Does a Crosssell Occur?
Cross-sells fall somewhere in between upsells and downsells. Offering something of similar value at some point during the sales cycles allows you to add to your profit margins without having to spend additional time or resources on the sale.
Putting it Into Practice
The point of upsells, downsells and crossells is to maximize your profits and minimize your time spent. You are creating extra opportunities for yourself from the same amount of resources. Nobody does this better than Amazon. Whenever you make a purchase on Amazon, you’re offered other similar products. Sometimes we buy, sometimes we don’t but the option is there and that’s the point.
If you could do this effectively in your business, what would this look like?
You would be able to:
Overcome objections by offering other options
Add on additional value to each sale, increasing your revenue
Create value from positioning buyers to take the next steps after the sale
Deliver a clear path to multiple products
Provide options when the buyer says yes
Provide options when the buyer says no
Give the consumer what they want in sellable pieces
Diversify your business
These days many new business owners fall into the coach or consultant category with their time being their core product as they sell their knowledge. With upsells, downsells and crossells, entrepreneurs in this space can now profit from their knowledge from different avenues in the forms of books, courses and so much more.
This is just the beginning of the power of upsells, downsells and crosssells. Check out our other posts as we go more in-depth about the selling tactics available for your business.
“How do I make more money in my business?” is an age-old question that has been asked since the beginning of commerce.
We may have altruistic purposes or a strong internal “why” for why we’re in business, but at the end of the day, we are all in business to make money. How much money depends on what you need to be comfortable. That revenue number is different for all of us. Regardless of where we want to end up with our business financially, we all start in the same place, at least we should.
Anything that can be measured can be improved. The profits from your business are no different.
Making More Money: Have a Scaling Plan
If you have any hopes on growing and eventually scaling, you have to measure your business. Many times, owners notice issues with their business (especially when it comes to their cash flow) but don’t know where the issues are stemming from. If you don’t know where the issues in your business are coming from, you’ll never be able to solve it.
Tell me, how fun is it to find a solution when you don’t even know the problem? About as fun as trying to count the hair on your own head. Translation: not fun at all.
The bad news is that this happens more often than most business owners care to imagine.
The good news? There’s a solution for it.
The Importance of Measuring Your Growth
We kind of already spoiled the secret earlier in this post but the secret really isn’t a secret at all. If you want to know how much your kid grew during his first year of high school, what would you do? You’d measure your kid before they entered their freshman year then you’d measure kid on the last day of school (or the end of summer, depending what kind of parent you are).
Your business is the same way. You measure it at the beginning then periodically along the way. Figuring out how much your kid grew over the course of a year is pretty simple. You measure their height. Figuring out how much your business grew (or shrank) over the year isn’t as straightforward.
Measuring your kid’s height is figurately and literally and a linear process. Height is your only variable. Your business is a bit more complicated. In our businesses, we are often trying new things. A new sales process. A new marketing campaign. New employees. Sometimes even a new business model. With you imputing a bunch of different variables at the same time, it’s hard to measure the impact (good or bad) that certain changes had. You can’t grow your business without understanding the resulting of the actions you’ve taken.
So, what should you do?
Use KPIs to Make More Money
Establish KPI – your Key Performance Indicators. These will be non-financial measures of the quality of your output and the efficiency of the underlying processes in your business.
This means you should focus on the process. Trust the process. Allocate resources to move the needle to get the results you are looking for. Take for example your sales process.
When most business owners think of their sales, they’re only focused on their bottom line. The bottom line is obviously important, but focusing on it alone will not bring you any closer to growing it.
Instead, consider measuring your conversion rates. Your conversion rate is the percentage of visitors to your page that complete the desired goal. Your conversion rate tells a much deeper, complicated story then your bottom line.
After measuring your conversion rate, measure your average dollar sale per order. This will tell you how large or small your orders are on average. If your conversion rates are high but your average dollar per sale is declining, your sales agent might be giving things away or heavily discounting orders to make the sale happen.
Understanding those key performance indicators will allow you to either revamp your sales process or confront your sales team. Regardless of the course of action you choose, you’re now equipped with the data to make sensible choices regarding your process.
Conclusion: There is Strength in Data
Cleaning up the issues in your sales process will inevitably lead your business to make more money. Knowing your KPI’s then taking the correct action on them helps patch the holes that truly exists instead of your creating new holes just to patch them. Business owners often create issues for themselves that don’t truly exists in real life, but that’s a story for another day.
Indicators that track the health of your business. Don’t you want a healthy, profitable business?
Know your numbers. Know your cost. Know your margins. Know your profitability.
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