Free Sales Training Video: Upselling and Cross Selling

Sticky Bites - The Free Sales Training Channel

15 Sept 201603:16

Summary

TLDRThe script discusses the art of successful upselling and cross-selling, exemplified by McDonald's iconic 'Would you like fries with that?' It emphasizes the importance of timing, relevance, and value addition in offering additional products or services. The strategy should be executed after securing the primary sale and should be based on customer needs and interests. The script also advises on leveraging company resources and web pages to promote associated products, ensuring a seamless and logical cross-sell approach.

Takeaways

🍔 **Cross-selling Success**: McDonald's 'Would you like fries with that?' is a prime example of successful cross-selling, generating millions in additional revenue.
💡 **Timing is Key**: Offer additional products or services only after the customer has decided to buy the primary product to maintain focus.
💸 **Value Addition**: Ensure that the upsell is relevant and adds value to the customer's business, not just a means to increase revenue.
🛒 **Customer-Centric**: Wait until the main product has been sold before introducing additional items that the customer has expressed interest in.
📈 **Budget Consideration**: Be mindful not to overload the customer's budget; secondary sales should be of value, not just to clear excess stock.
🔗 **Link Products Smartly**: Collaborate with your marketing team to link associated products and accessories to your main offerings on your company's webpages.
🗣️ **Seamless Conversation**: Mention in passing, during a friendly conversation, what other customers have added to their orders and the benefits they've experienced.
📝 **Review Customer Notes**: After securing the main order, review your notes for other opportunities that can be upsold or cross-sold.
📊 **Qualification Process**: Use your qualification process to identify and offer relevant upsells that fit naturally with the customer's needs.
💼 **Involve Management**: Consult with your manager to bundle additional products like headsets with IP desk phones if the customer shows interest.

Q & A

What is the significance of cross-selling in the context of McDonald's?
-Cross-selling in McDonald's is significant because it has been highly successful in generating substantial additional revenues and profits in the multi-millions of dollars worldwide. The practice is exemplified by the simple question, 'Would you like fries with that?' which capitalizes on the customer's buying mode to offer minimal additional expense while providing substantial value to both parties.
Why is it important to time cross-selling correctly in a sales process?
-Timing is crucial in cross-selling because offering additional products or services too early in the sales process can distract from the initial product and potentially lose focus. It's recommended to wait until the main product has been decided upon before introducing additional options.
How should a salesperson handle a customer's additional requirement during a sales discussion?
-A salesperson should acknowledge the customer's additional requirement but 'park' it until the main product has been sold. After closing the main sale, the salesperson can then reintroduce the additional product as a benefit to the customer and offer to include it in the sale.
What is the potential risk of overdoing upselling in a sales transaction?
-Overdoing upselling can risk exceeding the customer's budget, which might lead to the loss of a secondary sale that could have been of greater value. It's important to ensure that the upsell is relevant and adds real value to the customer's business.
How can a company ensure that its upsell is relevant to the customer?
-A company can ensure relevance by linking associated product resources and accessories to its primary product offerings, ensuring that the upsell is not a throwaway item but something that adds value to the customer's purchase.
What is the role of the company's webpage in facilitating cross-selling?
-The company's webpage plays a role in facilitating cross-selling by positioning links to associated products and accessories in a way that makes the cross-sell offer more logical and seamless to the customer.
How can a salesperson subtly introduce the idea of cross-selling to a customer?
-A salesperson can subtly introduce cross-selling by mentioning, in a casual conversation, what other customers have added to their orders and the benefits they experienced, but this should only be done after securing the order for the primary offering.
What should a salesperson do during the sales process to identify opportunities for upselling or cross-selling?
-A salesperson should ask the customer many questions to uncover, isolate, and address pain points. While focusing on the primary product offering, they should also check and scan their notes for other qualified opportunities that can be up or cross-sold.
Why is it beneficial to bundle accessories with a primary product sale?
-Bundling accessories with a primary product sale can be beneficial as it offers a lower cost option if bought at that particular moment in time, making the overall purchase more attractive to the customer.
How can a sales team work with the marketing team to improve cross-selling efforts?
-The sales team can work with the marketing team to link associated product resources and accessories to primary product offerings, ensuring that these are highlighted on the company's webpages and are part of the sales conversation.

Outlines

00:00

🍔 Cross-Selling Strategies at McDonald's

This paragraph discusses the effectiveness of cross-selling, exemplified by McDonald's famous upselling question, 'Would you like fries with that?' It highlights how this strategy can lead to significant additional revenues and profits, particularly when the customer is already in a buying mindset. The importance of timing is emphasized, suggesting that additional products or services should be offered after the initial sale to avoid losing focus. The paragraph also advises on the relevance and value of the upsell, ensuring it is connected to the customer's needs and not merely a means to increase sales or clear excess inventory. Furthermore, it encourages businesses to link associated products and accessories to their primary offerings, making cross-selling a seamless part of the customer's purchasing experience.

Mindmap

Keywords

💡Cross-selling

Cross-selling is a sales strategy where a business offers additional products or services to a customer who is in the process of making a purchase. In the context of the video, McDonald's is highlighted as a successful example of cross-selling, where they ask 'Would you like fries with that?' This approach is effective because it targets customers who are already in a buying mode, making it more likely for them to accept additional offers. The script emphasizes that cross-selling should be relevant and add value to the customer's purchase.

💡Upselling

Upselling is the practice of selling a more expensive or higher-grade product or service to a customer, often in place of a less expensive one. The video script warns against overdoing upselling, as it can strain the customer's budget and detract from the value of the primary sale. The goal should be to offer an upsell that is relevant and adds real value to the customer's needs, rather than merely increasing the sale amount.

💡Sticky sales

The term 'sticky sales' refers to sales that are likely to generate repeat business or ongoing revenue. The video script uses this term to describe the type of sales that McDonald's achieves through its cross-selling strategy, where the addition of fries to a burger purchase not only increases the immediate sale but also encourages customers to make similar additional purchases in the future.

💡Customer buying mode

Being in 'customer buying mode' means that a customer is ready and willing to make a purchase. The video script suggests that this is the optimal time to introduce additional products or services, as the customer is already engaged and more likely to consider the extra offerings. This is exemplified by McDonald's asking about fries when a customer is already purchasing a burger.

💡Additional expense

In the context of the video, 'additional expense' refers to the extra cost incurred by a customer when they agree to an upsell or cross-sell. The script advises that this expense should be minimal to ensure that the customer perceives the additional purchase as a good value. This is illustrated by the low cost of adding fries to a meal, which does not significantly increase the total cost but enhances the customer's experience.

💡Value to both parties

The 'value to both parties' concept in the video refers to the mutual benefits that result from a successful cross-sell or upsell. For the customer, this means receiving additional products or services that enhance their purchase, while for the business, it means increased revenue and potentially higher customer satisfaction. The video emphasizes that the value should be substantial and beneficial for both the customer and the business.

💡Prime product offering

A 'prime product offering' is the main product or service that a customer is initially interested in purchasing. The video script advises focusing on closing the sale for this primary offering before introducing additional products or services. This ensures that the customer's primary needs are met and that the upsell or cross-sell is relevant and adds value to the initial purchase.

💡Qualification process

The 'qualification process' in sales involves assessing a potential customer's needs and determining whether they are a good fit for a particular product or service. The video script mentions that if this process is done correctly, it should naturally lead to opportunities for upselling or cross-selling. It involves understanding the customer's pain points and needs to offer them relevant additional products or services.

💡Bundle into the order

To 'bundle into the order' means to include additional products or services with the main purchase. The video script uses the example of offering headsets to go along with IP desk phones. This strategy can make the customer feel they are getting a deal, and it can increase the overall value of the sale without overwhelming the customer with too many options.

💡Linking associated products

The concept of 'linking associated products' refers to the practice of connecting related products or accessories with a primary product offering. The video script suggests working with marketing teams to create these links on company web pages, making it easier for customers to see the benefits of adding these items to their purchase. This strategy can make cross-selling more logical and seamless, as it presents the additional products as natural complements to the main purchase.

💡Pain points

In the context of the video, 'pain points' are the issues or problems that a customer is trying to solve with a purchase. The script advises salespeople to ask questions and listen carefully to identify these pain points, which can then be used to offer relevant upsells or cross-sells. By addressing the customer's specific needs, the sales process can be more effective and the additional offerings can be more appealing.

Highlights

Cross-selling can significantly increase revenues and profits, as exemplified by McDonald's 'Would you like fries with that?'

McDonald's has mastered cross-selling, generating millions in additional revenue worldwide.

Offer additional products or services when the customer is in buying mode to minimize additional expense.

Striking too early in the sales process with upselling can distract from the initial product.

Park additional requirements until the main product has been sold to maintain focus.

Offer to roll additional products into the sale after closing the main event.

Avoid overselling to prevent exceeding the customer's budget and potentially losing a secondary sale.

Ensure that upsells are relevant and add real value to the customer's business.

Cross-sell products should be relevant, useful, and offer a lower cost option if bought at that time.

Link associated product resources and accessories to your main product offerings within your company's web pages.

Encourage customers to consider additional linked products during the sales process.

Mention in conversation what other customers have added to their orders and the benefits they experienced.

Secure the order for the main product before attempting to cross-sell additional items.

Check and scan your notes for other qualified opportunities that can be up or cross-sold during the sales process.

Focus on the main product offering while uncovering, isolating, and addressing pain points with the customer.

Use the qualification process to naturally integrate cross-selling opportunities into the sales conversation.