Growth Session #1

“Profit Now INTRO”

· This is about making more from your existing customer base

· This is all about implementation

· Business challenges is find the time to implement anything

· You must implement tracking and measuring strategies to ensure long term success

· You must priorities your opportunities

· Only work on one at a time

· The power of incremental profits is understanding the cumulative effect of small improvements

· The increase are in your pocket profits

Growth Session #2

“How to Effortlessly Get 30% of Your Customers to Dramatically

Increase their Average Purchase (and your profits as well)”

· An up-sell is offering them more of what they bought at the point of purchase

· A cross-sell is offering them a related and complementary item to their purchase at the point of purchase

· This is an upgrade to the original purchase

· The person is in a purchase state so are more receptive at the point of purchase

· Example: Garden center

– Buy a plant

– If you buy 3 for the price of 2 is an up-sell

– If you buy 2 plants them get compost half price is a cross-sell

· MacDonald’s do you want fries and a coke with that?

– They don’t say do you want anything else with that

· Offering people a discount at the point of purchase increases the average transaction

4 Ways To Up-sell & Cross-sell

1) Additional quantity

– Offer a better deal for the purchase of a bigger quantity

– It’s introducing the option at the point of the sale

2) Complementary products and service

– hair salon that also offers supplies

– Have a special offer at the point of purchase

3) On related products & services

– Oil change and transmission maintenance

– Offer a deal on the transmissions service while they are there

4) Offer them a premium product/service

– Educate the on the advantages of the higher quality item

– Offer a better suit for example

Three Categories of Business

1) Repeat nature business

– Accountants

– Grocery stores

– Insurance

– Cleaners

– Example: hair salon offering to give a discount to family members if they sign up that day

– Example: A landscape can add extra services such as weeding or snow plowing or seasonal flowers

2) Random repeat businesses

– Physicians

– Hobby shops

– Realtors

– Restaurant

– Lawyers

– Example: Video shop offer 3rd movie at half price or add popcorn

– Example: Doctor offers discounted flu shots

– Example: Restaurant offer discounts o desserts

3) Single purchase business

– Carpet

– Furniture

– Swimming Pools

– Office equipment

– Cars

– Example: Car seller offers financing and insurance as well as car accessories which can get wrapped into the contract

– Example: swimming pool also offers pool cleaning and supplies. They can also offer lighting landscaping, ornaments. They can offer the services even if they don’t offer them. Offer a discount for cleaning or closing the pool

How Do You Implement It

STEP 1: Upsell and Cross Sell Opportunities.

· List 2 products or services that you currently provide, in which you can offer your customer a logical additional product or service, or a greater quantity, or higher level product or service at the point of purchase (ie: men’s suit).

– Greater quantity

· List 2 specific additional products or services (upsell or cross sell) that you can offer at the point of purchase, which would be appealing to your customers. (ie: shirt or belt)

– What do they buy before, during or after they buy from you?

– Make them high ticket items

STEP 2: Why Should Customers Purchase?

· Under each of the items you have listed to upsell or cross sell list 2-3 benefits your customers would derive from purchasing these additional items.

STEP 3: Lifetime Value (Profit) of Upsell/Cross-Sell Items

1) Profit Per Transaction $ Per Year $ Per Business Life $

2) Profit Per Transaction $ Per Year $ Per Business Life $

· Average suit is $550 and after expenses the baseline profit is $150

· If they offer a $750 for $625 they now make an additional profit of $25

· Cross sell a short, tie or belt for half price – $15 profit

· Increase profit of $40 which is a 27% increase

STEP 4: Crunch down to ONE.

· Decide which primary product you will use to trigger your upsell or cross-sell offer.

– Example is the suit

· Which product or service will be your upsell or cross-sell item?

– The belt or tie

STEP 5: Design the Offer.

· Write down what your offer will be for your customers to purchase your upsell/cross-sell item.

· At what price will you provide the product or service?

– Charge full price or discount to make it irresistible such as hair salon products

· Will you also provide a bonus or additional incentive (If so, what will it be)?

– If they purchase the oil change and give a discount in the next one

· Will you eliminate risk, if appropriate (If so, how specifically will you do so)?

– Guarantee it

STEP 6: Design Your Script

· Using the offer you just designed, what question are you going to ask the customer to stimulate the purchase of your offer?

– Sign by the register

– The MacDonalds question

Stimulate the purchase verbally

“By the way, since you purchased a shirt today, you get a second shirt for half price”

– Or “I know the European suit you really liked was too expensive. If I could get it to you for just another $125, would you like it instead?”

– Or “Would you like some socks to go with the suit?”

Or “Do you have a will or living trust for your family? As part of my tax preparation and planning service we also provide estate planning. If you care to have this done while I am working with your file I can save you $100”. Without at least a “basic will” your property will go to probate and your kids may be big losers. Without a living trust, you could pay over $125,000 in taxes that are totally unnecessary.

STEP 7: Determining Your Timing

· Based on your customers and the item you have selected for your upsell/cross-sell, what is the appropriate time to ask your question?

– In retail it may be point of purchase

· Are there any situations where asking would be inappropriate?

· What qualifying questions could you ask to determine if the upsell/cross-sell item is appropriate for the customer and to determine whether they have an interest?

– In the sales process to ensure that you match their needs

STEP 8: Decide on Your Specific Test and Roll Out Program

· Write down how you will ask the upsell/cross sell question and who is going to be responsible for testing your offer.

· How will you ask? Who will you ask?

· Write down your measurement system and how you will track results.

– Build this from your responses

· Design an incentive program that motivates your employees to ask the question consistently.

– Review this constantly because of you don’t they will stop doing it

· How will you motivate your staff?

– Pay a commission

Advertisements