Every business is different so you must adjust the strategies and tactics to fit your needs but add-on sales think: “Would You Like Fries with That?” is the classic example and can make a tremendous improvement in your bottom line. Mc Donald’s wouldn’t be the behemoth it is today without the higher margin fries and drink items they provide.
We performed a financial analysis for a retail yogurt shop start-up that absolutely stunned the owners. Adding a topping to a yogurt cup doubled their profit on every sale. This is where HR and Marketing intersect. Armed with the data we provided and a short A/B test the yogurt shop trained their employees to ask a single open-ended question to each and every customer. With the simple phrase “Which topping would you like with that?” the yogurt shop grew and prospered.
What Are You Waiting For?
They are standing right in front of you. Since you are talking to them already, incremental costs in an investment of a measured amount of additional time are often irrelevant to the added benefit to your career or business. At the very least your conversations during the sale should be purposefully designed to build a relationship for future sales and referrals.
Satisfied Customers are Easiest to Sell
They have made the decision to purchase which also means they have made the decision to trust you, Congratulations. How can you maintain that all-important trust if you don’t ensure your customer is aware of all of the possible available options? You never want your customer to regret not purchasing an upgrade, option or warranty that is usually much less expensive or only available at the time of the initial purchase.
More Educated Customer
Your customers will appreciate an educational approach instead of using old fashion arm twisting high pressure sales that everyone despises. If they purchase an upgrade or option they will be a more satisfied customer because they received all the benefits they wanted or needed. Even if they don’t purchase an upgrade or option they will leave a more educated customer and value the caring educational approach you provided making them a more likely and more valuable referral source and repeat customer.
What do hair stylists, airlines and dentists all have in common? Increased order frequency. They have to pay for the seat themselves instead of the customer that should be in it. Increased order frequency varies widely from business to business but is a low-cost way to generate additional sales and profitability from already satisfied customers.
Set the next appointment before they leave, structure your loyalty program to reward more frequent visits or use geofencing in a smartphone app to promote your brand when they are near your store are all tactics you can use to increase your profitability.
Feel free to reach out and let us know your favorite tactics for Add-on Sales and Increased Order Frequency. I look forward to hearing from you.