Upselling and cross selling in a retail store
September 17th 2007 05:40
Anyone who works in retail, either as a sales assistant or in a supervisory or management role, is responsible for increasing customer satisfaction and company profits. They are also responsible for customer service and ensuring that each new customer becomes a returning customer.
A key skill for someone in retail is upselling, which is the ability to sell a better suited product to each customer and also cross or link selling, which is encouraging the purchase of a complimenting product that fits the product purchased and the customers needs.
This may sound scary to anyone who hasn't come across this before, but it is an integral part of any sales process.
Many sales people don't enjoy up or link selling as they don't feel that they do it correctly. Their sales usually go somewhere along the lines of the following.
Customer: "I'd like to purchase this pair of shoes please."
Salesperson: "Ok, that's 25.99 please?"
The customer then leaves and the salesperson loses out on the extra sales that could increase profits for the company, increase the chances of that customer returning and also possibly bring in a bonus for them.
If we stick with the example, how could the salesperson encourage the extra sales?
This is where product knowledge comes in. Any good salesperson knows that product knowledge is key. It is much easier to sell something when you know the product. This isn't to say that you need to purchase every product you sell and use it yourself, although that would be the easiest way to learn. Spend some time outside of work reading through information on the internet about each product that you sell. Also ask your manager to help you build your knowledge of the products, as managers often begin their careers working in the role that you are in now.
Once you have some product knowledge you need to begin offering your newly found expertise to your customers. Meaning the sales process should now go something like this...
Customer: "I'd like to purchase these shoes please."
Sales person: "These are lovely suede shoes, are they for a special occasion?"
Customer: "Not really, they are for work."
Salesperson: "Oh, lovely. So you will be needing them to be comfortable, may I recommend some insoles to give extra padding to the shoe?"
Customer: "Yes please, that would be helpful"
Salesperson: "Good, and suede does need care as it marks easily, would you also like a suede brush and some cleaner to ensure that they stay in the same condition. Oh, and lets not forget a tin of protection spray, which will waterproof them and protect them from damage?"
Customer: "Wow, I think that really would be a good idea, thankyou."
Salesperson: "It's not a problem at all. Is there anything else you are needing today?"
Customer: "Actually, I would like a new bag as well"
Salesperson: "Ok, I think this bag compliments them really well."
Customer: "Yes it does, thankyou so much."
Salesperson: "It's ok. Shall we get these wrapped for you?"
Customer: "Please do."
Salesperson: "That will be 56.99 please."
Customer: "There you go."
Salesperson: "You have a really nice day, and I'm sure that the shoes and bag will look lovely at work."
Customer: "I'm sure they will, thankyou for all of your help"
You see this took a little longer, but the customer is very happy and you have managed to make a sale of 31.00 more than before, just by offering a few extras that help to protect the shoes that the customer was already buying. The customer new that she also needed a bag but may not have remembered it without your help.
If you work on 10% commission from every sale you have increased your payment from 2.59 to 3.10 without any real effort. This may not seem much but imagine if you do the same for the next 20 sales you have earned 62.00 instead of 51.80. Amazing eh? Even if you are not on commission you should still upsell or link sell. If you are selling even 15.00 more to each customer, your companies profit margin will see an increase and this will put you in good stead for bonuses, pay rises and promotions.
Obviously not every customer will want to purchase any extras, but always offer. The law of averages says that one in ten customers will say yes.
Good luck with your cross or upselling, go make some money and let me know if it works for you.
A key skill for someone in retail is upselling, which is the ability to sell a better suited product to each customer and also cross or link selling, which is encouraging the purchase of a complimenting product that fits the product purchased and the customers needs.
This may sound scary to anyone who hasn't come across this before, but it is an integral part of any sales process.
Many sales people don't enjoy up or link selling as they don't feel that they do it correctly. Their sales usually go somewhere along the lines of the following.
Customer: "I'd like to purchase this pair of shoes please."
Salesperson: "Ok, that's 25.99 please?"
The customer then leaves and the salesperson loses out on the extra sales that could increase profits for the company, increase the chances of that customer returning and also possibly bring in a bonus for them.
If we stick with the example, how could the salesperson encourage the extra sales?
This is where product knowledge comes in. Any good salesperson knows that product knowledge is key. It is much easier to sell something when you know the product. This isn't to say that you need to purchase every product you sell and use it yourself, although that would be the easiest way to learn. Spend some time outside of work reading through information on the internet about each product that you sell. Also ask your manager to help you build your knowledge of the products, as managers often begin their careers working in the role that you are in now.
Once you have some product knowledge you need to begin offering your newly found expertise to your customers. Meaning the sales process should now go something like this...
Customer: "I'd like to purchase these shoes please."
Sales person: "These are lovely suede shoes, are they for a special occasion?"
Customer: "Not really, they are for work."
Salesperson: "Oh, lovely. So you will be needing them to be comfortable, may I recommend some insoles to give extra padding to the shoe?"
Customer: "Yes please, that would be helpful"
Salesperson: "Good, and suede does need care as it marks easily, would you also like a suede brush and some cleaner to ensure that they stay in the same condition. Oh, and lets not forget a tin of protection spray, which will waterproof them and protect them from damage?"
Customer: "Wow, I think that really would be a good idea, thankyou."
Salesperson: "It's not a problem at all. Is there anything else you are needing today?"
Customer: "Actually, I would like a new bag as well"
Salesperson: "Ok, I think this bag compliments them really well."
Customer: "Yes it does, thankyou so much."
Salesperson: "It's ok. Shall we get these wrapped for you?"
Customer: "Please do."
Salesperson: "That will be 56.99 please."
Customer: "There you go."
Salesperson: "You have a really nice day, and I'm sure that the shoes and bag will look lovely at work."
Customer: "I'm sure they will, thankyou for all of your help"
You see this took a little longer, but the customer is very happy and you have managed to make a sale of 31.00 more than before, just by offering a few extras that help to protect the shoes that the customer was already buying. The customer new that she also needed a bag but may not have remembered it without your help.
If you work on 10% commission from every sale you have increased your payment from 2.59 to 3.10 without any real effort. This may not seem much but imagine if you do the same for the next 20 sales you have earned 62.00 instead of 51.80. Amazing eh? Even if you are not on commission you should still upsell or link sell. If you are selling even 15.00 more to each customer, your companies profit margin will see an increase and this will put you in good stead for bonuses, pay rises and promotions.
Obviously not every customer will want to purchase any extras, but always offer. The law of averages says that one in ten customers will say yes.
Good luck with your cross or upselling, go make some money and let me know if it works for you.
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