This is part 3 on developing your value web.
We talked about various items of value that you can offer your customers. And then the second part, we talked about the upsell or selling more of a product at a greater value or at a discount to your customers. The key to doing that, as I said, is knowing that if you do sell more, to make sure that you also understand the different cross-sell or complementary products or services that you can offer when they come in. And this is key to make sure that when you do an upsell, that you’re not losing money in your business, but you’re generating more revenue. So if you think about your product, think about what are the complementary products or services that you could offer with your initial one?
For example, if I bought a new guitar, there are many different complementary products that could go along with purchasing a guitar. You’ve got the strap, pics, cables, strings, polish, you’ve got humidifier packs.
Now, this would be ridiculous, it would be wonderful but ridiculous. But say you upsold me on buying five guitars right now at a discounted rate and then receiving them over the next five years. So every year I come in and pick up my new guitar. When I come in to pick up that next guitar, that’s when you’re also going to offer me a strap for this guitar? Offer me more pics or how about an upgraded case? You could ask if I need more guitar polish and offer me all the complementary products that I might need to go along with that next guitar, and you’re going to be making more revenue in total by doing this.
I gave the illustration in the last post of a hair salon. Maybe you offer an upsell where you sell a certain number of haircuts upfront at a discounted rate. When I come in for that next haircut, make sure you know the complementary products or services that you can offer me. I come in for that haircut that I’ve already paid for but maybe you say,
“For two more bucks right now I’ll do a wash and condition” or “here’s some hair product that is better for you.”
You’re gonna have different products and services to offer me when I come in for that next haircut.
If you have a massage therapy studio, and you offer an upsell package for massages, maybe I bought five massages already at a discounted rate. But when I come in for that second and third massage, you’re going to offer me an add-on of some essential oils, or an add on experience. Maybe I can upgrade to a hot stone therapy massage (and I even know what that is). I’m going to pay you 10 more dollars now, to get some essential oils, and a hot stone, whatever.
Up-sells are great, as long as you know how to compliment them with your cross-sells to make sure that you’re increasing the revenue in your business and not losing money on that upsell.
As we’ve been talking about this value web, we’ve figured out our value ladder of what are the different products or services of different various values that we can offer our customers. We’ve figured out how we can upsell our customers by selling them more of a product or service at a discounted rate and when we do that, we also know the different complementary products or cross-sells that we’re going to offer them, every time, to increase the revenue and transaction amount when they come in.
In the last part of this series, we’re going to talk about down-sells so we don’t lose any potential customers.
If these quick tips are helping you and you want to get them delivered to you, then subscribe to this blog. Also, share it with others, and I would love for you to comment on how you’ve implemented these things into your own business. And again, as always, reach out and contact me if I can be of any personal help to you.