One of my pet peeves involves these deal of the day sites like Living Social and Groupon. Not the businesses themselves, but the way customers are treated when using one of their deals.
I recently bought a deal to a very fancy local steakhouse. Since we’re local, Mr. Bartender and I figured it would be a good way to check the place out. And we’re well aware that we need to tip the server on the full value of the meal. We also figured we might buy some extra items. So we went expecting to spend more than the cost of the deal. The food itself was wonderful. The service was a totally different story. The minute the server found out we had purchased a deal…we became the red-headed stepchild.
[Tweet “An Open Letter to CEOs – Teach Your Employees to Upsell”]
I understand there are many reasons a company chooses to sell a deal of the day offer. And many reasons people choose to buy them. But one thing is consistently true – companies are trying to get new customers out of it – or bring back those from the past. No one offers a Groupon with the hope of reducing their customer base.
Which brings me to today’s post. Organizations need to realize that delivering good customer service can directly equal more profit. One way to deliver excellent service is through the concept of upselling. It’s defined as a sales technique where the seller induces the customer to buy a more expensive item or add-on. When it’s done properly, it can come across as excellent customer service. Here are some examples:
- Server: Can I get you a drink from the bar?
- Customer: Yes, I’d love a gin and tonic.
- Server: Tanqueray or Bombay Sapphire?
- Customer: I’d like to purchase this shirt.
- Store Clerk: This is a nice shirt. Can I show you a tie (or necklace) that would go great with it?
- Director: We’re looking forward to working with you to implement the new system.
- Sales Manager: We are as well. Before we get started with implementation, I’d like to mention a few optional items. You might feel you don’t need them today, but I’ve heard a lot of clients say they wish they would have bought them on the front end.
I happen to be one of those people who loves a good upsell. While some might view it as a nuisance, it shows me that the person knows their product or service and they believe in it. And I will buy. Another story, a few months ago I purchased a spa package. When I checked in, the receptionist told me that they would allow me to purchase the same package at the same price upon leaving. At first, I thought that I wouldn’t want to do it. But I had a very nice day so, when I left, I was ready to buy another package.
Except they didn’t offer me the deal. No upsell. Revenue lost.
I understand that the price of everything is going up. But businesses can’t complain about rising costs and then do nothing to generate more revenue for themselves. Training employees how to upsell generates revenue for the business. And the cost to provide upsell training would more than pay for itself.
I like to think of upsell training as a combination of customer service and sales training. Make customers happy by suggesting ways to improve their experience. All while directly growing your top line. This is low-hanging fruit.
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Carolyn says
Wow – I’m not too keen on the upsell when it is done improperly (overtly pushy salespeople – especially in the automotive industry), but what got me was the initial part of your post. While it is true that many people buy these deals and forget about them (yes, I’ll admit I’ve let them expire) – usually you buy them with the intent to use them. In the case of the restaurant example, why on earth would the server treat you any differently? The purpose of the deal was to gain more business (either from new or existing clients). It’s part ‘thank you’ and part an opportunity for them to shine and get you to come back again.
Often service (the experience) trumps the product for me. It’s the service – the experience that keeps you coming back OR keeps you away. If I was treated that way at a restaurant, I might think twice about coming back, no matter how good the food is.
Interesting food for thought – thanks!
Sharlyn Lauby says
Thanks for the comment Carolyn. I totally agree with you – service often trumps the product. Today’s customers want a positive experience for their hard earned cash.
Travis says
If you don’t plainly offer available products or services, haven’t you taken a decision away from your customer? Would you appreciate it if someone you didn’t know made some personal decisions for you? I doubt it, and neither do your customers.
Some of my clients are VERY hesitant about up-selling, bc they don’t want to be seen as pushy. This is understandable, but illogical, and here is why –
You are there to provide products or services for your customers. Your knowledge is valuable. Your products improve their lives. Your services help them save time or money. Give them a chance to decide if they want to buy or not. Don’t say “no” for them.
Of course don’t be pushy, but the least you can do is leave it up to them.