Article Number : 5888 |
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| Date | 9/2/2010 9:16:48 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=5888 |
| Abstract | Upselling. Trading up. Whatever the term, for some reason many are uncomfortable with this sales technique even though it has long-term benefits for the consumer, salesperson and store... |
| Article | Upselling. Trading up. Whatever the term, for some reason many are uncomfortable with this sales technique even though it has long-term benefits for the consumer, salesperson and store. “Upselling the customer will help ensure that she has a product she is proud to have in her home,” said Roy Foster, Quick•Step’s vice president of sales. “If a consumer achieves the visual she desires in her home, she will walk away more satisfied and likely to provide additional business in the future.” In addition to a more satisfied customer, he noted, “The retailer makes a greater profit on a higher-end product. These products also provide the best manufacturing warranties available, so the consumer is less likely to return or refund the product due to wear or damage.’ David Small, Pergo’s vice president of marketing, agreed and added the company regularly puts on educational programs to help retailers and their salespeople trading a customer up to a higher end is not a negative. “One goal of this training is to teach the benefits of upselling premium Pergo collections like Elegant Expressions and Pergo Commercial,” he explained. “Through our training programs, we convey that upselling to premium Pergo collections has a definite positive impact on dealers’ bottom lines, and ultimately creates loyal, satisfied customers.” George Davies, Shaw’s senior marketing communications manager, said the company’s Star Assurance program “is probably the most effective way of helping retail sales personnel show consumers the benefits of upselling. The 3-, 4-, and 5-Star system shows the features and benefits of each category and demonstrate the advantages of better quality.” While low-end products no longer have that fake wood or tile look, Foster noted, “With higher-end products, a much more authentic look is achieved. Premium products include more sophisticated features and details, such as enhanced surface finishes, to elevate the realism of the visual. Higher-end products also feature more intricate edge treatments such as those that replicate the recessed scallops usually found only in handcrafted woodwork or micro-beveled edges on all four sides that give a natural wood plank appearance.” Some strategies 1. Ask the consumer what is important to her. “By knowing this information, the sales teams can highlight aspects of the higher-end products that embody what she is looking for,” Foster said. 2. Find out the area of the home she is shopping for and her lifestyle. This not only enables a salesperson to present her with the best product, it opens up other selling opportunities, noted Cindy Thornton, marketing manager for Alloc and Berry Floors. “If a home owner is using laminate in a dining area, it’s effective to suggest using the same product in the foyer that leads to the dining room as well. We want retailers to recommend laminate for a vast array of applications in the home.” 3. Because style remains the top reason for buying one floor over another, many suggest starting at the top, and if it is too far out of a customer’s price range work your way down to the next best option that fits her budget. At each step, though, the salesperson should provide information regarding why the product is a better option than the one at the bottom of the display. 4. Make sure to include maintenance products with the sale. “Of course, this is an added selling opportunity, but it’s primarily an important enhancement that will improve the end-user’s experience with the product—hopefully leading to repeat business in the future.” You want fries with that? Upselling is a relatively easy way to boost sales volume without generating any additional leads. Once the customer has decided to make a purchase, the salesperson tactfully convinces her to purchase additional features or upgrade to a slightly higher grade of the same product. Think “supersize” at McDonald’s. One of the biggest mistakes of upselling happens when the salesperson tries to push additional features or product enhancements to the buyer without any sense of style or finesse. Buyers will frequently choose to participate in the upsell, but only if the salesperson treats them with the same respect he did throughout the rest of the sale. Here are a few tips. 1. Focus on added value. You can’t upsell successfully unless you truly believe the upgrade or additional purchase, like a higher-end product, accessories, etc., will benefit the buyer. If you approach the upsell as just another way to increase the dollar value of their purchase, it will be impossible to convince her that you are serving her best interests. 2. Communicate benefits. Another technique common among effective upsellers is the ability to communicate the benefits of the add-on in clear terms. For example, let’s say you were selling furniture and were trying to upsell stain-repellant on a purchase. Don’t just ask the customer if she wants to buy “Stain-Prevent.” Tell her she can protect her purchase for five years with just one application of stain repellant. Help the customer see the benefit of the upsell so she can make the right decision. 3. Provide practical demonstrations. Some upsells lend themselves to practical hands-on demonstrations. Let’s say you are upselling a laminate purchase. There are low-end products and higher-end products. In many cases, the visual is comparable. Why not perform an impact resistance test? Before Wilsonart announced it was exiting flooring, it was providing retailers with an apparatus that demonstrated the durability and impact resistance of its flooring. Instead of taking your word for the benefit of the upsell, the customer can experience it herself. 4. Offer package pricing. Consumers love value. If done properly, upsells can be value magnets when they create a sense of urgency. The key is to help the buyer see if she purchases additional features now, she will spend less than if she decides to purchase later. For example, a retailer may give a price break for a maintenance package if it is purchased with the flooring. If the customer decides to do it at a later date, she will have to pay full price. If she is offered a particularly attractive package price, she might even view the upsell as a money-saving decision. |