What to Do When Your PPP Money Runs Out

Entrepreneurs Beware! Upselling will Undermine Your Business, So Do This Instead We’ve all experienced it – visiting an electronics chain to purchase a single item. Something you want and you’re excited to use. Reaching the checkout counter, an uneasy and annoying feeling begins to creep up. Just wanting to complete a simple transaction, you present your payment, only to be asked if you’d like to add a warranty. Then comes the follow-up savings pitch – you could save a significant percentage if you open a new credit card. Declining both, you walk out, disappointed but unsurprised at what could have been a good experience. The figures don’t lie. Retailers often earn more upselling add-ons than the margins on their products. It’s why consumers have to endure these unwelcome offers time and again. Such encounters persuade people to skip the physical store and just order what they need online to mitigate the upsell tactic. After all, it’s much easier to swipe or click past such offers than to tell another human being “No.” Now, apply this mindset to your own business. Upselling may seem like a tempting strategy to boost your revenue, but it could be the very thing that undermines your sales. Instead of pushing more products or services onto your customers, you should focus on building genuine relationships and delivering exceptional value. Why Upselling Hurts Businesses Let’s face it – most people, whether retail employees or skilled tradespeople, don’t relish upselling customers. It’s uncomfortable because they’ve been in the same position too. Like everyone else, those individuals also endured the awkward upsell and don’t want to be required to do the same. Worse still, upselling, when done improperly, can harm a business. But, that’s not all; upselling can be counterproductive for several reasons. For instance: Customer trust. Aggressive upselling or misleading customers into purchasing more expensive products can erode customer trust. Customers value honesty and transparency from businesses. If they feel a company is trying to take advantage of them through upselling, they may lose trust in the brand and choose to shop elsewhere. Negative experience. Here’s the most obvious reason. Overly pushy or frequent upselling can create a negative customer experience. Customers may feel pressured or annoyed by constant attempts to upsell, which could lead to dissatisfaction and potentially drive them away from a business. Unmet expectations. Upselling can sometimes lead to customers purchasing products or services that don’t meet their expectations or needs. This can result in dissatisfaction and negative reviews that can harm a business’s reputation. Lost sales. If customers feel they’re being upsold too aggressively, they may decide not to make any purchase at all. This could result in lost sales for the business and bad word of mouth from dissatisfied customers too eager to share their negative experiences with others. Resource misallocation. Focusing too heavily on upselling can divert resources away from other important areas of the business, such as customer service or product development – two positive and helpful things. Damage to brand image. This bears repeating, if a business gains a reputation for aggressive or misleading upselling, it could damage its brand image and make it harder to attract new customers. To avoid these pitfalls, businesses should focus on providing value to their customers, rather than just trying to increase sales at any cost. This means only offering upsells that genuinely benefit the customer and being transparent about the value of the upsell. Better yet, instead of upselling, try upserving. 7 Compelling Reasons to Upserve Instead of Upsell You may have heard the term “upserving” before. Regardless if you’re familiar with it or not, it’s a great alternative because it puts customers’ needs first. So, businesses should focus on upserving their customers instead of upselling for many compelling reasons: Customer satisfaction. Upserving means providing more value to the customer. Again, this could take the form of offering a product or service that genuinely meets a need or enhances their experience. When customers feel that a business is looking out for their best interests, it increases their satisfaction and loyalty. Long-term relationships. Upselling can sometimes feel like an annoying sales tactic, one that can erode trust and damage the long-term relationship with the customer. On the other hand, upserving builds trust and fosters a stronger, more positive relationship. Positive brand image. Businesses that focus on upserving are seen as customer-centric and trustworthy. This enhances the brand’s image and reputation. What’s more, customers are much more likely to make referrals based on such positive experiences. Increased sales. While upselling can increase sales in the short term, upserving can lead to even greater sales in the long run. Satisfied customers are more likely to make repeat purchases and recommend the business to others. Customer retention. Upserving helps to retain customers. It’s much more cost-effective to retain an existing customer than to acquire a new one. When you upsell, you run the risk of losing a customer because they feel like you’re putting your bottom line before their needs. Differentiation. In a crowded market, upserving can be a key differentiator. It sets the business apart from competitors who may be more focused on upselling. Customer Lifetime Value. Upserving can increase the customer lifetime value (CLV). CLV is a measure of how much a customer is worth to a company throughout their relationship. By upserving, businesses can increase this value. So, upserving is about putting the customer first and providing them with more value. This leads to increased customer satisfaction, loyalty, and ultimately, more sales over the long term. Want to Accomplish More? Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do? We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test. You can call us for your free appointment at (602) 541-1760, or, if you prefer,

The economy is in a recession. Interest rates are going up. Inflation is rising. There’s a labor shortage. (And, materials are still not readily available.) The list can go on and on and on. What’s even worse, is there are business owners actually do go on and on. They complain about this, that, and the other thing. Some even take it to the next level and complain about things that haven’t even happened yet. Then, although somewhat rare, there are entrepreneurs out there who go so far as to put their gripes and grievances on social media. This doesn’t paint a very positive picture and of course, it does absolutely nothing to correct what is perceived to be or is wrong. In reality, it does far more harm than it does through catharsis. So, if you’re guilty of this extremely unattractive behavior it’s time to stop, and here’s why. The Internet is Forever All right, very few business owners actually do complain over the internet but where it’s mostly found is social media. Regardless of the digital property, the internet is forever, meaning that once it is out there, it’s usually not possible to take it back. Even if you’re able to delete it, you’ve already left a negative impression. We sometimes deny that we’re complaining. Instead, we say that we’re just “being honest,” “venting” or “blowing off steam.” But don’t kid yourself: Whenever you insert negative feelings into a conversation without some sort of resolution, you’re complaining. It’s tempting because there is a lot about entrepreneurship to complain about —Entrepreneur.com Then, there’s something else to keep in mind. Business owners don’t need to be the ones writing complaints about this or that on the web. Dissatisfied customers will do that instead (and probably with good reason). In other words, if you complain to your customers or in front of them, there’s a good chance they’ll share that experience and that isn’t good for your business’s public reputation. Instead of Complaining, Do the Following Everyone is guilty and capable of letting their complaints be known. But for business owners, this is a very bad choice with no real upside. Whether you’re complaining about a problematic customer, an inhospitable vendor, or your bank charging petty nickel and dime fees, you’re still doing it with negative emotion. Sure, people will understand your frustration, but customers really don’t want to hear about it or even care. So, what should you do when something bothers you and you’re dealing with a customer at that time? Well, the first suggestion is to ignore or resist your instinct to interject complaints and bite your tongue. If you’re able to put it off for a little while, you’ll be able to vent to the right people in an appropriate setting. Should your personality be one that says it’s best to be honest with everyone and use that excuse as a justification, think twice before you start blurting out complaints. Ask yourself what would you think if you were the customer hearing this? Merely putting yourself in your customers’ shoes ought to be enough to dissuade you from griping. At the very least, it will give you pause to adjust your attitude. It’s also helpful to remember that complaining doesn’t solve anything. Yes, it does allow you to get something that’s bothering you off your chest, but that’s not usually worth the ultimate cost. Remember that it is not an attractive or trustworthy trait and you’ll do yourself a huge favor. What other advice would you give business owners who have a bad habit of complaining to customers? Please share your own thoughts and experiences so others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group.