Understanding Add-On Sales: The Basics
One of the most common mistakes people make about add-on sales is thinking itâs about foisting things on customers they donât want or need. That itâs about making more money than making the customer happy. And in this age of social media - this can lead to fatal reviews. Add-on sales, when done properly, are based on understanding and predicting your customerâs needs.
It comes from a genuine desire to take care of your customers and give them a great service experience. A key part of that is making sure that youâre identifying opportunities to sell more products that they would have bought anyway. If you find yourself feeling sleazy or underhanded while attempting upselling techniques, then youâre probably going about it the wrong way.
Or maybe just putting undue pressure on yourself to meet targets without much else fuelling it. I think itâs important here to take a breath and consider the products youâre being asked to sell. Or at least how they relate to what your customer came in for - whether literally or figuratively.
This can help clear up a lot of confusion and uncertainty in even the most high-pressure environments. If your add-ons come from a place of care, knowledge, and interest in what people need to feel stylish and confident - then you really can't go wrong. Being able to read people is such an underrated skill when working with others.
And a big part of upselling effectively requires learning how to listen actively, learning their behaviour patterns and preferences, building relationships, earning trust, and offering advice tailored to each oneâs needs and concerns (no matter how flighty they might seem). This is where people skills are absolutely invaluable.
The Psychology Behind Successful Upselling
Letâs be honest, most salons think upselling means giving someone a menu and saying - âWant fries with that. â Itâs the oldest trick in the book. And it does more harm than good. Consumers feel like theyâre being lied to, and that you care about getting their money rather than solving their problem.
The reality is that upselling should be about adding value, not more revenue to your bottomline. When someoneâs hair is dry, suggesting a moisturising treatment isnât an attempt to get them to spend more but a recommendation for them to give their hair what it needs. Same when someone walks in with hair colour thatâs grown out - recommend a retouch and a highlight (if it suits their desired outcome) can a bit help alleviate any anxiety they have about looking older or tired.
Thatâs what they want from you - for you to know what they want even before they do. There are rarely of course some people who dislike this approach too. They donât like you âsuggestingâ things because they feel youâre undermining their self-awareness. The best way around this is to make recommendations about products and treatments, and then let them choose whether theyâd like either or both.
Many people feel that an upsell is condescending. So be mindful of the language you use and how it fits into the conversation in a way that adds value. Sometimes I think upselling doesnât work so well when we avoid sharing our expertise for fear of judgement or embarrassment.
Itâs natural to worry that customers will misunderstand your suggestion as manipulation when in fact, you genuinely care about helping them find their look or fix their struggle with dry hair.
Top 7 Add-On Sales Techniques
The biggest mistake I see people making with sales is just thinking about what they want to sell, and not what their customer might want to buy. The way I see it, they miss the opportunity to offer a complementary item, or upsell, while the customer is in that buying mode. It can seldom be a missed opportunity for the customer as much as for you.
Sort of. Add-on sales can be as simple as suggesting a matching scarf to go with a pair of boots or offering a bonus that adds value to their initial purchase. The most important part is that it fits the customer's lifestyle and adds value to them. But of course, there are seemingly some tried and true add-on sales techniques.
Upselling, cross-selling, bundling, offering freebies or bonuses, time-limited offers (think only 3 left in stock. ), highlighting high margin products (strategically placed near the till), and of course, loyalty programmes all work wonders when done with intention. It's all about showing genuine care for the customer in front of you. Always look for ways to go above and beyond.
See if you can add value to their experience in a way that is authentic and meaningful for both of you. If it feels transactional or just about more money, it can fall flat - so think about how you would want someone to treat you if roles were reversed.
Crafting Irresistible Offers
People always seem to think that the best way to get a âyesâ is to pummel your clients with as many offers as they can come up with. But thereâs a knack to making add-on sales. Iâll be honest - more often than not, people are pretty good at it but not great.
The way I see it, i have found that the key to crafting the kind of add-on offer that gets people interested in your business is to understand what you have that your competitors donât, make your offers as appealing and simple as possible, and pay close attention to your audienceâs needs. It sounds so obvious when I say it now, but youâd be surprised at how few people know that. The way I see it, creating this kind of clarity in your offerings is evidently a bit difficult when youâre not exactly sure what your business can do for someone or what makes what youâre offering so unique. But thatâs why research is such an important part of add-on sales - in my opinion, at least.
In order to keep your business and offerings fresh, one must always stay in tune with their environment and their own business. You never know how close you are to being able to update or reinvent something within your offering that could make all the difference. A lot of people go into crafting irresistible offers thinking that theyâve done everything they need to do and probably end up giving something away for free when they didnât need to. Once youâve figured out what it is that makes you stand out and how youâd like to present it, the world of add-on sales becomes a friendlier place for you.
Training Your Team for Success
Most business owners think people are born salespeople. That youâre either a natural or not and that if youâre not, you canât be trained to do it with a natural touch and some confidence. Sounds Like they donât invest the time or money in training their team because of the pretty bad ideas they have about what makes a good salesperson. Contrary to popular belief, the reality is that most successful salespeople get to where they are with regular training and mentoring.
They spend most of their time learning on the job, from their managers or colleagues, rather than simply being born with it. Equipping your team with the right skills and tools to upsell comes down to helping them build confidence in their own abilities.
A big part of that is investing the energy in getting rid of any negative beliefs they might have about sales - such as thinking all salespeople are sleazy, lazy liars or believing that upselling is inherently unethical because itâs pushing for more. Somewhere between providing regular training and motivation for your team to embrace learning thereâs a sweet spot where your team starts to take pride in how well they can serve customers instead of simply doing what they have been told. And thatâs when things start working so much better.
It seems like on top of regular training sessions, practice exercises and role playing, it helps to make sure everyone knows how each person on the team is reportedly progressing at any point in time so that everyone feels inspired to do better. Giving your team recognition for improving on specific skills also gives them the motivation to push themselves harder at growing further. Sales training doesnât always have to be repetitive and dry.
There are numerous ways to infuse fun into it such as having game nights where teams compete against each other at role playing pitches.
Measuring the Impact of Add-On Sales Strategies
Most people get this wrong by counting up the sales and calling it a day. And, while itâs all about the numbers, thereâs more nuance to assessing add-on sales than just looking at the sales figures. I Gather add-on sales are not only measured by a direct increase in conversions. You can also measure how your add-on strategies help you get closer to your business goals.
The surest way to measure the impact of add-ons on profit is probably by calculating changes in average order value. It gives you a definitive answer to whether theyâre working for your business or not.
But there are other ways that impact is measured as well like changes in customer retention rates and even customer loyalty indicators. And thereâs always room for subjectivity in measuring business data. Maybe youâre noticing more regular customers who keep coming back for your new deals but arenât translating into higher order value or even profit for that matter.
Itâs also not uncommon for add-ons to influence one another. For instance, free shipping thresholds and loyalty rewards go hand-in-hand with higher order value which in turn, increase customer engagement and retention. Add-ons work together to increase AOV and when they do, analysing each strategy individually may not make sense for your business. Itâs crucial that you keep measuring regularly though, because what works now might not work so well later on - especially with retail trends changing every season or so.