5 Tips for Tactful Upselling
Last week, The Consumerist (a popular blog for outing customer un-friendly companies) posted a bit on avoiding upselling.
They point to lots of examples: the free magazine subscriptions, the extended warranties, the added protections and services...
Indeed, upselling has run rampant. Because when an existing customer agrees to buy more, it costs the proprietor nearly nothing. And, according to this MSN Money article, surveys indicate that 15 percent of customers actually want to hear about additional offerings.
Of course the flip side is that you’ve got a solid chance of ticking off 85 percent of customers with your upsell pitch. Here are some guidelines for keeping on your clients' good side:
1. Don't be random. Last year, my then-auto insurance agent went over the changes to my rate with me, and, in the next breath, tried to sell me a life insurance policy. While the abrupt transition sent me into stammering mode, my furrowed brow spoke volumes.
2. Keep it relevant. I've never understood why Best Buy tries to sell me a magazine subscription when I'm buying new earphones. The demographics are all wrong. The products don't coincide. Similarly, if I'm tweaking my auto policy, making the leap to life insurance can be difficult. If you can help me out with my renter's or home insurance policy, great. Tell me about that!
3. Be less effusive. As customers, we know you're just doing your job. But that doesn't make us any more excited to be upsold. I actually do have a life insurance policy. And when my agent has a new offering for me, he usually sends me a letter with all the details. No phone call. No in-your-face sales pitch. The ball is all up in my court and I can do with it what I please. I love it.
4. Show, don't tell. When my life insurance agent sends me information about a new offering, he sends me a detailed workup of how that will financially affect me—when I'm 35, 40, 55, 70...he shows me the money.
5. Use incentives. This is pretty easy to do in the insurance world, and probably goes without saying. If you upsell your client into buying home insurance in addition to an auto policy, give 'em a hefty discount. Now the customer and your boss are happy. Hurray!
Done tactfully, upselling can help you knock monthly and quarterly quotas out of the park. Just do unto others as you'd like done to you. :)
