Let’s look at how up-selling and cross-selling can massively increase this customer’s value. (Up-selling is adding related products or services to the original purchase. Cross-selling is getting this customer to buy a product or service totally unrelated to the original purchase). Your current customers are the easiest sales for you to make. They already know you, like you, and trust you. So why do most businesses spend all their money and efforts trying to sell to new customers who don’t know them, like them, and trust them? It’s because they do not understand how much up-selling and cross-selling can quickly increase their profits.
By training yourself and your staff to offer other services and products to customers, you can easily increase profits. By addressing your customer’s needs when they buy one product, you may learn about other products that will further help them. This will instantly increase sales and profits, and improve your relationship with your customers.
Let’s look at what happens to the lifetime value of my tax return client if I use up-selling and cross-selling:
Simply put, up-selling and cross-selling increases the potential lifetime value of that one customer from $5,250 ($1,750 x 3 customers) to an amazing $37,350!