The power of the upsell – where do we start?
Using the relationship you have with existing agency clients to boost revenue, deepen that relationship and making them more ‘sticky’ in the process is the power we’re talking about. Sticking power!
Upselling isn’t possible with every client, as they have budgets to stick to and specific use cases for why they use your product, but when you’re able to create those building blocks out of your client base, your agency is winning. Let us break it down…
You may have 50 clients that your agency works for right now, and they all only have their Google Ads with you.
But you provide SEO services, Social Ads, Social Media management, websites and directory management. How easy would it be for those clients to walk away if they find a better deal elsewhere? Very.
However, if your products are super valuable and your service is A1 this might result in them taking out 3 of those 6 products with your agency. This gives them ‘sticking power’ because it’s a lot more difficult for them to find these products elsewhere and move everything over to another service provider.
But besides that, your agency should be so fabulous at what you do that they shouldn’t be looking elsewhere.
So when your clients are sticky, you’ll have a higher client retention rate and we can guarantee that off the back of that will come more brand advocates, brand awareness etc. Should we go on?
Upselling is a sales technique where a BDM or account manager will encourage an existing client to sign up for a more expensive product, an upgrade or an add-on to create more revenue.
Of course, this isn’t just about selling and making more money, the main aim of upselling is to create more value for your client and to try to ensure longevity and prolong their churn cycle.
Higher revenue is just a perk of it.
Upselling to the right client with the right product is paramount, as you don’t want to convince your client to buy something they don’t need, and then they end up bowing out in a few months anyway because their package is now too expensive and not providing them any additional value.
Gone are the days when we upsell (or miss-sell as the case may be) for the sake of a bit of profit.
Well, it’s mutually beneficial for both your agency and your clients.
Upselling contributes to the growth of both businesses, as you’ll provide a product that will help them increase sales, while the client taking on the new or improved product will grow your revenue.
Every business needs to scale to survive, but with upselling, you get to play a part in the growth of your client’s business while ensuring your own longevity.
Let’s start with the value your clients will get from an upsell. Value is the absolute key here:
1. Increased performance and efficiency:
An upsell often comes with improved features or capabilities, so your clients will be able to put processes in place that save them time, increase their performance and allow them to get more done.
They will be able to hit their goals faster and even more effectively with the new tools they have.
2. Cost savings in the long run:
If your clients invest in a higher quality or more complete product it may lead to higher cost savings in the future. Upsells with enhancements will probably reduce their need to replace products regularly or decrease the need to make additional purchases.
Purchasing a premium service may also save problems down the line, which have the potential to be costly.
3. Customisation and flexibility:
Product upgrades or premium versions of your product offer more customisation options allowing your clients to tailor the solutions to their specific needs. This flexibility ensures that the products grow and evolve as your client does.
It goes without saying that when you upsell your agency will make more money. Upselling gets your clients in the mood to buy more, which has a direct positive impact on your revenue.
Since upsold products tend to have higher profit margins, this strategy can significantly boost your agency’s overall profitability.
By offering product upgrades that address your client’s pain points and growing needs, your agency can build stronger relationships and make brand advocates out of its clients.
Happy clients are ones who are much more likely to approach you to ask if you have a product that will help with the needs that they have, rather than go and look elsewhere. Furthermore, they’ll shout about you to other business owners and have the ‘sticking’ power we all strive for.
With upselling, you’ll achieve a deeper insight into your clients’ needs and preferences. There’ll be some upsell products that are super popular and ones that will tank.
Use preferences and data like this to develop your products and services, in addition to keeping up with market trends to stay ahead in the industry.
Before I dive in to when is, let me tell you when it’s not… When your client is not happy!
If they have any grumbles about their billing, they’re disengaged, they’re missing meetings, they’re missing payments – the list goes on.
When you’re faced with this situation best not to hit them with the ‘Hey we’ve got this amazing new product launching…’ as a way to try and rebuild that bridge.
There are however a few opportune times to approach upselling and these are:
1. During the initial purchase:
When a client is already considering a purchase, then they’re in the mindset to consider different options.
When you’re approaching the closing stage and the client is all ears, it’s an ideal time to broach a product to upsell. E.g a more feature-filled version of your product or add-ons that complement the product they’re going for.
You know like waiting until your mums in a good mood to ask her if you can play out? Yeah, that.
2. After a Successful Experience:
When your client has the feel-goods after an experience with your products would be the perfect time to drop a little hint about an upsell.
This could be after a successful trial period or pilot, a milestone achievement, or positive feedback.
3. When Renewing or Reordering:
If a client is renewing a subscription, reordering a product, or extending a service contract, it’s a prime time to offer an upsell.
You can demo the options that provide better value or more features than their current choice.
There is indeed an art to upselling, just like there is with traditional selling. As we mentioned above, the timing is super important, as is having a plan to avoid throwing out suggestions to see if any will stick.
If you’re looking to upsell effectively, you need an understanding of your clients needs and what they’re striving for. To be able to match a product to that need and detail the exact ways in which it will benefit the client and bring them value.
We will keep saying it and it’s the hill we’re willing to die on. Timing is everything. As we outlined above choose times when the customer is happy, and has had a positive experience with you or when they’re already in buying mode.
To know your clients properly means you’ll need to be speaking with them frequently, so ensuring that you have regular catch ups with them, will set the scene.
You’ll be able to keep up to date with what’s going on in their business, the things that are going well, how much they’re growing and what struggles they’re facing. Speaking frequently creates a strong foundation for when you want to pitch an upsell or ask for a review or case study later down the line.
Reviewing their performance under your agency is also a great way-in to a conversation about upselling. Especially if you use digital presence audits, to pinpoint any weak areas they may have, within those audits you can also show them how their competitors are fairing against them, to rustle up a little bit of healthy competition.
We’re sure you know that almost all people look at reviews, case studies and testimonials before they make a purchase. So having some case studies or reviews ready to go when pitching an upsell may just be your golden ticket to a ‘yes’.
Having proof of the value your products can bring is a very powerful tool to have in your belt, so be sure to have some stats, reviews and case studies from your clients in your tool matrix.
We’re going to assume that a demo is already part of your pitch of an upsell, but offering a trial of the product after the demo, so the client can explore it in their own time is another powerful way to encourage a yes.
It’s always easier to make a decision after having something tangible to use, so them being able to use it in real time and apply it to some real life examples, might just be the edge you need.
If a client mentions a specific goal they have for the business, this is the perfect time to turn on your active listening ears and collect all the information you need to come back to the client with a pitch that will not only help them achieve that goal, but maybe even expedite the process!
Show them how this upsell will support the growth they’re aiming for, save them time, streamline their process, reduce costs, improve performance.
There’s a lot of background work that goes into upselling and part of that is to market your products effectively.
So how do you do that? We’d be happy to tell you!
We’ve already touched on ensuring you’re upselling the right product to the right client. So identifying key segments will help you tailor your marketing activities so it lands with the right people and fits their needs perfectly. This may take some of the legwork out of trying to sell or upsell.
Once you’ve narrowed down your segments and you know which groups have which preferences, you can go ahead and create targeted marketing campaigns that will speak directly to goals or pain points that these groups have.
You’ve got all the tips and tricks you need to get started, so what are you waiting for? Go make your agency some money.
To recap we’ve looked at:
It might seem like a nice to have, but upselling is actually an integral part of securing your agency’s longevity and client lifecycle. It isn’t always an easy thing to do, but by following our tips above, you should have the best chance of achieving your new upselling targets.
Rejig your marketing and client management strategies to make sure that it’s personalised and you’re making the most of the marketing activities your agency carries out to ensure top-tier relationships with your clients, so upsells just become a natural part of the process.
Still think you might struggle a little with your upselling? Well, have we got something for you!
Our digital presence audits are the perfect addition you upselling tools, giving you a visual aid to show your clients exactly how you can help them.
Get in touch with us today, we’ll be more than happy to talk you through how smash those upselling targets!
Happy upselling! 🚀The Insites Team
17th August 2023
17th October 2019