"Would you like fries with that?" is the classic upsell that I'm sure we've all heard before. As a customer, it's easy to identify the upsell that's being made. As a service business, it can be a bit trickier to put a solid upselling strategy in place.
Let's start from the beginning - what is upselling?
BusinessDictionary.com spells it out simply, describing it as "A sales strategy where the seller will provide opportunities to purchase related products or services, often for the sole purpose of making a larger sale."
So how does a service business upsell effectively? Is upselling an out-dated technique that doesn’t work with modern consumers? This article will explore the power of technology in communicating value to your customers within the service industry. It's that value proposition to customers that is critical to uncovering upselling opportunities to customers.
Start with the customer experience
If we take a step back and look at the core reasons for Uber's successful disruption in the transport industry we can see:
- A customer-centric business model: putting the customer first
- Price transparency: knowing the price of the services upfront
- Customer convenience: making booking as easy as possible for the customer
- Visibility over service: creating confidence in a secure service
- Constant updates on progress: clearly communicating and notifying the customer over the progression of the service
"The reason for reviewing the success of Uber is because they have successfully managed to build a platform that continues to deliver a great customer experience and in many ways sets customer expectation"
We have seen the above functionality being adopted across other industries to deliver customer satisfaction and meet ever-increasing customer expectations. There are a number of applications that can assist businesses with their job management and differentiate the way in which they deliver their services to customers. The reason for reviewing the success of Uber is because they have successfully managed to build a platform and framework to deliver a great customer experience.
The consistency of delivering an excellent customer experience also builds trust. Customers know what to expect. They also know that your company is thinking about them and wanting to do more for them. So, when it comes to the upsell opportunity, you already have the customer's trust. The additional or upgraded sale becomes that much easier and much more effective.
Customer engagement drivers
When driving engagement with customers, consider benefits to them such as:
- Easy, online booking functionality
- Resource allocation
- Communication of job information and progress updates
- On-site payment collection
- Ratings and reviews
"Avoid being pushy in the upsell and make sure you are being relevant. For example if your lawn mowing services have been requested, you may want to enquire whether you can do complimentary jobs like removing a dead tree, trimming of a hedge or even a pool inspection"
The focus on your customer experience and customer engagement will create a baseline where you can more easily ask for upsells. The best way to start is simply by asking. If you don’t ask the answer will always be ‘NO’.
Listen to your customer's challenges and identify upsells that are going to add value to them. It's not just about increasing your revenue, it's about offering something more. Don't be afraid to ask your customers about what they want. It's an opportunity to gain valuable feedback that will help you deliver a service that exceeds the customer expectation.
You can start to provide real value through delivering a service that satisfies the needs of the customer. Upselling can also help you create the perception of increased value to the customer.
Effective ways to increase upsells
When you've identified the right types of services to upsell, you'll want to pitch them the right way. Here are a few ways to more effectively upsell services:
1. Keep your services targeted and relevant
Avoid being pushy in the upsell and make sure you are being relevant. For example if your lawn mowing services have been requested, you may want to enquire whether you can do complimentary jobs like removing a dead tree, trimming of a hedge or even a pool inspection. Avoid trying to upsell unrelated services like installing or repairing a fridge. Documenting job progress with visuals before, during and after to the customers. Clear and transparent communication go a long way in building trust and confidence in your service and displays a sense of professionalism.
2. Communicate well and build a pipeline
At the end of the day, customers want your services to help them solve a problem that they can’t. If you can communicate clearly the service work that is done there is a good chance that you will be able to upsell further. Build a pipeline of work based on recommendations that you believe need to be replaced, maintained or repaired short-term, medium-term or long-term. Be the expert in your field, talk to this and it will help in securing future business. An example could be recommending a service maintenance plan for the geyser that you have installed as it will result in lower costs for the customer long-term.
3. Price points are important
It is important to be not out price yourself while you are onsite at the customer. If you have a customer that has purchased an install of a new pool pump you may want to offer cleaning the pool too. Your normal service rate may be $100 per hour, it may be worth charging $60 for the second hour to rather get the additional revenue while you are onsite. By keeping the additional service pricing lower, your customers perceive an overall increased value - they know they're getting their money's worth.
You also need to be prepared, if you believe that there is an opportunity to upsell some equipment based on the customers’ requirements than bring the equipment along with you to hopefully push the sale through. It is always a great idea to try bundle your offering at a lower price point so you can get ongoing commitment.
Build a pipeline of work based on recommendations that you believe need to be replaced, maintained or repaired short-term, medium-term or long-term. Be the expert in your field, talk to this and it will help in securing future business.
The chance of making successful upsells is hugely improved if you're already delivering an excellent customer experience and engaging with your customers. Doing some homework to find out their pain points can help you know which services to upsell. Focusing on the value you're delivering will maximise those upsells being taken.
Your upsell services should be targeted and relevant to get the best cut-through. Building your pipeline will help you be aware of further opportunities and setting prices that customers will see as getting their money's worth will help seal the deal.
If you are considering ways to deliver value to ensure you exceed your customers’ expectations then get in touch with the Riyo team. Not only can we help your business with your upsell strategy but we can also discuss how you can leverage technology to deliver a great service to your customers.
Creating an excellent customer experience and setting the stage for upsell opportunities isn't always easy. But it can be made a lot more effective using service job management software like Riyo. It's a mobile-first platform that's helping companies turn their service jobs into "job done".
The below 90-second video gives you some insights on what job management software can do.
Ready to adapt and thrive? Start with your free discovery session.