One Way to Increase Revenue: Upsell!
Getting existing customers and prospects to spend more with you
Takeaways to Consider
- Old rule: It's five times more profitable to sell an existing customer than acquire a new one.
- "The most important order you ever get from a customer is the second order."
—Maxwell Sackheim (1890-1982), copywriter, co-founder (with Harry Scherman) of Book-of-the-Month
- Presumably your existing customers like you and will welcome a good offer from you.
- The term "upsell" has acquired a negative meaning in some circles. For example, a shyster advertises merchandise at an obscenely low price and then takes the shopper into his confidence and reveals that the thing being offered in junk, but he happens to have something real good for more money. This is known as bait-'n'-switch, "drip pricing" or "shrouded pricing" and can raise red flags at the FTC.
- However, if done on the up-and-up, upselling can be a good deal for both buyer and seller.
- Always spend time coming up with tests that will pry more cash out of your existing customers. As Willie Sutton said about robbing banks, "That's where the money is"
- Direct marketing is like fishing. You charter a boat and go deep-sea fishing in the vast ocean. When you land a fish, you capture it alive, bring it back to your private inland salt-water pond and coddle it. When you go fishing in your private pond, you'll get a lot more bites than when out on the broad ocean.