Upselling Is Not a Sure Thing
Experienced consultative salespeople know that it’s far easier to sell to current customers than it is to find new opportunities with cold call prospects who are not primed to buy from you. But success at upselling is not guaranteed — even when you’re providing a service the customer really needs. What does it take to create a more effective sales message that improves the chances of success?
A Recent Study
Our sales microlearning experts point to teams at a university in Switzerland and two universities in Germany who conducted a study looking at what messaging would maximize upselling success. The first phase of the experiment focused on whether a simple or complex message was more persuasive; the second phase examined whether purported gains or threatened losses boosted the likelihood of a purchase.
Complex or Simple?
200 buyer volunteers were divided into two groups, one of which received a simple straightforward sales message and the other a more complex message but with the same basic services. One message was easy to understand; the other required an effort to analyze the offer. It shouldn’t be surprising that the simpler message was easier to accept, and more buyers were positive in their response.
But there was an additional complication to the study.
Benefits vs. Threatened Losses
The upsell message also varied in sales presentation with some “buyers” given a pitch that emphasized additional benefits while others received a message that focused on what they would risk if they did not accept the upsell.
Here’s the interesting part: the complex message receivers were more accepting of the loss-avoidance pitch. It seemed that since they had spent considerable time and effort evaluating the more complex offer, they were not ready to give up their decision simply for benefits as much as for the risk of losing something meaningful.
The Conclusion?
What can we learn about creating a more effective sales message? It depends somewhat on your offering. If what you sell is simple to understand and rather transactional, it doesn’t matter which tack you take in terms of gain or loss.
But if your unique value proposition is more complex, your chances of success are greater if you emphasize loss avoidance. Buyers will be reluctant to change course once they’ve invested the time in making their original decision to buy.
In Practice
Those who subscribe to consultative or solution selling where the customer’s needs are at the center of the seller’s intent and message know that simply upselling to increase the purchase price is often self-defeating. When you can frame your message so that the customer believes that you are protecting them from risk of loss, you will be seen, not as self-serving, but as a trusted advisor.
The Bottom Line
The best salespeople make it as easy as possible for ideal target clients to say yes. But if the sales process is more complicated and lengthy, don’t hesitate to use a message of what will be lost if they don’t add on to their initial purchase. This is how to increase upselling success and help your customer at the same time.
To learn more about increasing your sales performance, download The 4 Most Important Attributes to Look for When Sales Reps Miss Their Targets