Maximizing Profits or Ticking Off Your Clients?By email@example.com | Category: Lead Story, Marketing, Strategic Planning
I recently read an interesting blog post by fellow marketing expert, Jim Kukral. He expressed his outrage at being charged $1 for air at a local gas station. Although he paid it, they lost a customer. This is a profit optimization strategy gone wrong.
One of the strategies I teach clients that can have an immediate increase in sales and profits with no additional costs is to implement the upsell strategy. However, in the case of the $1 air, it backfired.
So why should you add an upsell?
- Increase average sale – note: the $1 air increased the average sale, but decrease the lifetime value of the client, so it was not a successful version of an upsell.
- Serve your client – The upsell should serve your client. If your upsell truly serves the client, it will increase both the average sale and the lifetime value of a client, making it a win-win for you, the business owner and your client.
For example, if you have a spa and were offering a pedicure as the original service – you could upsell with a paraffin treatment. This would increase your average sale and lifetime value of a client, and serve the client who would go home feeling truly pampered and have softer feet, and maybe hands too.
Using Upsells is just one of the strategies I will be teaching you how to implement quickly and easily in my upcoming “Discovering Hidden Profits”.Google+