Show notes
When I think in terms of upselling versus cross-selling, what's the difference? Upselling to me means selling a better or a higher priced version of the thing that they're looking at. Whereas cross-selling is making a recommendation of something that's compatible.
David: Hi, and welcome to the podcast. In today's episode, co-host Jay McFarland and I will be discussing the topic of upselling and cross-selling. Are you doing it? Welcome back, Jay
Jay: Yeah, hey, thank you, David. Listen, have these bad memories when I was a kid and I was working in a fast food place and the manager was always pressing me, "ask them if they want a Coke, ask them if they want fries."
And I got to a point where it's hard to upsell and I think this has grown into my adulthood. You know, I just barely got the sale and now I'm asking them for more. It's not an easy thing to do for people.
David: You know, it's interesting you should mention the fast food example because it's the perfect example. It's the one that everyone can relate to. "You want fries with that?"
Jay: Yeah.
David: Or the shortened version that you hear a lot of times, "want fries with that," as the four word upsell. And it works extremely successfully for people in that sort of industry. Because it makes sense. Somebody's coming in, they're ordering whatever, a burger or something, or they're ordering a burger and a drink, "want fries with that" makes perfect sense.
And some percentage of time they're going to say yes. And whether that is 1% of the time or 80% of the time, it's probably maybe 30 to 60% of the time, I would guess, they're going to say yes. Because it's like, "oh, all right, sure. Why not? I'm already here."
Jay: Yeah.
David: And you hit on a great point, which is that we can feel funny about upselling, if we feel like the purpose is to simply get more money out of a person. If it feels like it's completely one-sided, if it feels like it's manipulative, then we're not going to want to do it.
So I personally believe that the times that we should upsell and cross-sell are the times when we truly believe that we have an additional solution that is going to be better for them.
Now, in the fast food example, are french fries better for you on top of the Coke and the hamburger?
Jay: Yes!
David: Probably not from a, health level, but certainly from a satisfaction level, yeah, it's better. People are likely to want that. But in business, if you're selling something, and somebody comes to you and they have something very specific they want to buy, and you have something that would be complimentary to that, or something that would go with that really well and would increase the value to the buyer, then you kind of owe it to them to at least ask them if they're interested in that.
Jay: Mm, I love that. I love that idea that if you are feeling uncomfortable, maybe you should ask yourself why. And how do you feel about your product? Are you really providing a value to them or are you just trying to sell something and get a paycheck, right?
And I think we all have to ask that question about our own careers and what we're doing and what we're selling. But, you know, if you can just feel great that what you're providing them is going to improve their situation, then you're just passionate about what you're doing and that's going to come through.
David: Yeah. So when you are talking to somebody like that, if you've got something that is actually going to be a benefit to them, if it's going to help them, then it's a lot easier to do it. So that really just boils down to motives.
What is the motive? And unfortunately, I think sometimes managers, like in the situation you described in the fast food restaurant, the manager says, "just do this. Ask them if they want this. Push it, push it, push it. Sell, sell, sell."
When instead, if the manager had said to you, Hey, listen, when people come in here, they're hungry. They want something good. You know, they've ordered this, they've ordered that other thing, so they might want it and maybe they didn't think of it.
You might want to suggest that. Maybe they want dessert, maybe they want an apple pie at the end, right?
Jay: Mm-hmm.
David: Apple pie. I'm saying yes to an apple pie, right? And if you don't ask, you don't get, and it's very easy for them to say no. Now, there are situations, and I've heard it referred to, particularly in online situations, where there are online upsells where you buy something and then it asks you if you want to buy this and you want to buy that and you want to buy this.
Yeah, I've heard people refer to that as upsell hell. Now, if you get somebody involved in that, then that's not good. But if you make a recommendation that makes sense for them, then I think there's absolutely nothing wrong with that.
Jay: Yeah, absolutely. I also have heard this, you know, back to the fast food example, when the person who's embarrassed to do it, they say, my manager wants me to ask you if you, and I'm like, oh, that's just the worst situation.
But I think, you know, I've also had like servers say, " you should try this because it's really good."
David: Yeah.
Jay: And that's different, right? That doesn't sound like an upsell. That doesn't feel like an upsell. So how you go about it, and are you passionate about it? Do you really believe that?
David: Right.
Jay: That makes all the difference.
David: When my son was traveling, he was in Italy with some of his friends and they went out for dinner one night and they went into this restaurant and the waiter was very happy to see them. Americans there to spend money, and the waiter came over to take for order and one of the guys ordered chicken and he said, "no, no, no, no. You don't want the chicken. It's terrible here, get the steak," right?
Now there's an example of an upsell, I guess.
Jay: Yeah,
David: Upsold them from the chicken to the steak. The steak was a lot more expensive. Was the chicken there really terrible? I have no idea. But he presented it in a way that made them think, all right, I'll get the steak.
And it was entertaining, too. So I think there are ways of engaging in this type of behavior where if it's not manipulative, and it actually gets them a better result than you might as well do it.
You know, another thing I think that people should consider is that when it comes to upsells and cross cells, it's not something that always just has to take place at the immediate point of purchase.
I mean, obviously that's a great time to do it, but if someone buys something from you... in the promotional products industry, I mean the, examples are kind of easy. Somebody buys t-shirts or sweatshirts, "want caps with that," right? Would be the equivalent of french fries.
And you can ask and they can say yes or they can say no, whatever it is. But if you don't do it at the point of sale, you could contact them back maybe a few weeks, a month later. Hey, I just wanted to let you know we just got this new product in. I think it would go perfectly with those shirts you got.
Would you be interested in having a look at that? Right? And that's an example of an upsell or a cross-sell that could take place later. So it's not like, If you didn't do it the first time, you can never do it again. There are plenty of opportunities to do that throughout the sales cycle.
Jay: Yeah, I agree. And the other thing, I've seen some research and it's something that I've implemented that has helped me get over the upsell thing, is that research that I've seen shows that the time when people are most willing to spend more with you is when they just spent with you. And that seems counterintuitive, right?
Like, I just got this money out of you. You just spent money and you're willing to spend more. That doesn't feel exactly right.
David: Yeah, but again, if you go back to the fast food example, it does make perfect sense. I'm getting this and I'm getting that. Do I want this too? Yeah, sure, why not? So there is that aspect of it.
Now, outside the fast food example, it might not be quite as obvious and there might not be as much of a connection. But once again, I think if we get beyond the idea of selling product, and we get more into the idea of satisfying the customer, what is the customer looking to get from this experience?
So in a promotional products example, am I looking to buy shirts? Not so much. I'm looking to buy awareness of my business. I'm looking to have people wear this thing and have people see it and recognize my business. I'm looking for a sense of affinity, that the people who wear it feel good about my company.
So there are very deep things that I could be looking for in this purchase. And so if I'm able to connect my additional recommendations, my upsells and my cross cells to those types of things, the things that motivated them to want to do it in the first place, then they're going to be a lot more likely to say yes.
But they're also going to be a lot more likely to appreciate the fact that you thought about what they actually want and you're trying to deliver it to them.
Jay: Yeah, and then you're avoiding that salesperson feeling and you're more like a consultant, as we've talked about so many times in these podcasts.
I think the other thing that you have to remember, just from a pure business standpoint, we talk about customer acquisition costs a lot, and if you can upsell somebody, That's product on top of your initial acquisition cost.
And then if you can cross-sell them, take your existing lead database and cross-sell them into other products, that by far is a better way to do business than constantly having to find new customers and always paying that cost to get those new customers in the door.
David: Yeah, absolutely.