How To Empty Your Customer’s Wallet And Get a 5-Star Review For Your Service!
[Part 1]
3-minute read
Let's analyze 2 well-known techniques that will help you make more money from each customer and how to get them right...
1) Cross-Selling = You sell a different product/service to your existing customer. It doesn't mean you need to be the one who fulfills it.
2) Up-selling = Persuade your customer to buy something additional to his first purchase or upgrade to a better package. (I will talk about this in part 2).
Here are 3 ways (with examples) to cross-sell. Read them carefully!
1) Sell a product/service to solve THE NEXT problem that will appear after the first purchase.
2) Sell a different product/service to SUPPORT the first purchase!
3) Sell an extended guarantee to cover or eliminate the HIDDEN FEARS from the first purchase.
Let's start!
1) Sell a product to solve THE NEXT problem that will appear after the first purchase.
"Every solution creates a fresh problem and the cycle repeats itself as long as the desire is on fire. It only stops when the wallet or credit card is maxed-out."
What I call "The Cycle of Needs"!
You take the bus to work. You decide to get your driver's license.
Now you need a car. You also need a loan for the new car. You also need insurance. You also need a garage to park your car. You also need new tires after 3 years. You also need maintenance. You also need cleaning services for the car.
Now you need a new car because, well, the one you have it's 5 years old.
Do you see the game?
The best way for you to understand what to cross-sell is to design the "cycle of needs" your customers have and sell them on their wants.
A need can be satisfied by multiple wants!
Ex: I need food because I am hungry. I want a pizza, not a burger! ;)
Once you know their needs, you figure out who can fulfill them. You don't need to fulfill everything yourself.
Ex:
You are a car salesman who just sold a $120.000 Mercedes. You know your customer’s needs and you search for somebody to fulfill them.
Let’s say you find a garage that provides the following services for a monthly fee:
- 24/7 security for your car.
- Maintenance check.
- Cleaning services.
- Airport pick up when you travel abroad.
You ask the following questions:
"How much does a customer worth to you? How long (on average) do you keep the relationship?
The garage owner replies $XX dollars and the average stay is around 8 months.
Ok.
How much would you give me if I brought you a customer who just spend $120.000 buying a new Mercedes and he will probably need your services?
What is the discounted price you will give my customer for the first month as an incentive to park his car in your garage?
If the garage owner understands the money he is going to make from such a customer, he will hardly refuse the proposal because he is getting a new referral with almost zero advertising cost.
And that referral is a $120.000 one. All referrals are not worth the same!
You, as a salesperson, will keep your percentage from the car sale and get another "bonus" from the garage owner to whom you referred your client.
You don't fulfill the garage service, somebody else does that, but you get to make more money with less headache.
And your client gives you a 5-star review for your service!
2) Sell a different product/service to SUPPORT the first purchase!
I bought a 60 inch TV screen.
Well, sir, do you like movies? Which movies do you like the most? Action? The Expendables?
Oh, can I show you something to support the TV you are going to buy?
This home theater will give you such an experience that I doubt you will visit cinemas in the near future...
You will feel like the hero inside the movie.
Just visualize the experience for a moment.
Lights off, TV and home theater turned on, popcorns ready and you press the "play button".
At one point, you see a helicopter inside the movie and you can hear it so clearly you believe they parked the helicopter on your roof.
(Customer is smiling because he is visualizing the experience…)
So, what do you think? Would you give the home theater a try?
3) Sell an extended guarantee to cover or eliminate the HIDDEN FEARS from the first purchase.
Before we purchase, there is a lot of fear. After we purchased there is a bit of fear because we are not sure if we took the right decision.
One of the best info-products you can sell and increase your bottom line is an extended guarantee for your service or product.
Everybody does it and it's pure profit as long as you know that during the extended guarantee period, your product/service will probably last.
Even if some won't last, again, it's a safe bet if you calculate the numbers.
That's all with cross-selling. The next post will be on upselling!
To your success,
Alex.
"Sell a product to solve a problem and sell another product to solve THE NEXT problem that will appear."