Entrepreneurs Beware! Upselling will Undermine Your Business, So Do This Instead

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:
  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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, Waters Business Consulting Group to learn more about us and the services we offer.

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest

Related Posts

Most Effective Networking Strategies Successful Entrepreneurs Practice

April 13, 2018 No Comments

Networking strategies can really help grow a business. But of course, you must put in the time and effort for any networking opportunities to achieve a tangible ROI. Statistics vary, however, many reveal it takes up to seven contact points before landing a sale. Regardless of these figures, the time-honored practice of networking pays off. (If it didn’t people wouldn’t bother wasting their time.) So, it’s really about taking the right approach. Why Successful Entrepreneurs Network Networking isn’t new in any sense. It’s an activity that helps to promote a business. But, that long track record doesn’t mean that it always works. There are several networking mistakes people make all the time and don’t realize it. That is, until they don’t see any fruits from their labor. Sales is about influence. There are methods of persuasion that work very well in business. But, there are also several fundamentals that need to be in place if you want to succeed. If those fundamentals aren’t in place, you can pretty much kiss your chances for success goodbye. —Entrepreneur.com Successful entrepreneurs network because it gives them an opportunity to grow their network and not necessarily to sell their products and services. Did you catch that? Networking is more about growing a circle of regular contacts rather than selling products and services. Think about it this way, would you go to a networking event that’s run in a hard-sell environment? Most Effective Networking Strategies You can Use So, now that you know networking is about extending your contacts and getting familiar with others and not selling, how do you do it right? In other words, what are the most effective networking strategies? Well, here are some helpful bits of advice about how to network: Be confident in your value. It all begins with your confidence. If you aren’t self-confident about your own personality (and comfortable with your faults), you’ll give off the wrong vibe. Go into any networking situation with confidence in your value. Don’t expect anything in return. Successful people aren’t afraid to give and not receive anything in return. Now, that sounds scary but it’s actually a sound business practice so long as it doesn’t cost very much. In other words, you can give expert advice, speak to a class, or do something else others find valuable. Find common ground right away. When you meet someone, be sure to find common ground as soon as possible. This way, you’re more comfortable. And, be sure to give genuine compliments often. Don’t sell your product or service. We’re back to the same philosophy about growing your network. When appropriate, speak about your work. For example, how you’ve solved a customer’s problem. But, do not go into a sales pitch. Let other see your value in more ways than one. What other suggestion do you have for networking? How and where do you find networking opportunities? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Read More »

Tips for Transforming a Companys Culture

May 17, 2017 No Comments

Transforming a company’s culture isn’t for the faint of heart. It takes a lot of courage, dedication, and plenty of humility. While that’s sounds contradictory or confusing, it’s actually the case. You’re going to need to lead in a new direction and be able to take things in stride (at least, to a point). Because changing an organization’s culture will feel much like trying to push a boulder up a steep hill. At any moment, it can roll right over you. But, if you know a few ways to deal with this change, you’ll have a much better shot at success. Tips for Transforming a Company’s Culture It’s very common for a company’s culture to reflect the prevailing management style. Let’s face it, most individuals tend to hire people who reflect their own style, so this isn’t a surprise. That means if a hiring manager or another leader has certain bad habits, chances are excellent others on team will likewise possess those same or like behaviors. It’s also true that culture doesn’t form overnight. It takes time for a company culture to develop. As a [business owner] or as a manager, you may have the power to change your organization’s policies with the stroke of a pen. And you may have the ability to hire, fire, promote and demote people with relatively little effort. But changing an entrenched culture is the toughest task you will face. To do so, you must win the hearts and minds of the people you work with, and that takes both cunning and persuasion. —The Wall Street Journal Once that culture forms, it’s very difficult to change. People become complacent and it takes a significant event to shake that off. It could be a big change in the industry for the worse, losing a lot of money, a sudden shrink in customers, or something else. Great cultures drive productivity and profits. Poor cultures slow productivity and profits. Culture starts with Leadership. So, it’s very important to realize when the culture is toxic and/or when crazy has infiltrated the business. It’s at this juncture you need to take immediate action. Here are some helpful tips for transforming a company’s culture: Team-up with an insider. If you are new to the business, team-up with an insider — someone who can give you the details of what’s happened is a very valuable person. Or, if you’re part of a company that’s just gone awry, you still need someone you can trust. A person who gives you confidence you’re getting the straight story. You’ll learn a lot and probably discover different ways to get back on-track. Get feedback from team members. Aside from your go-to person, you still need to solicit feedback from the entire team. Encourage people to communicate their experiences and expectations. This is a great way to identify who is and isn’t working out. You’ll know by each person’s input and reactions who is an asset and who is a liability. Then, you can work with individuals to help them improve. Define the limits and be extra clear. While getting in-the-loop will provide a lot of valuable information, it’s not going to be a magic bullet. You’ll still need to define boundaries and be very clear on your expectations. Remember the old saying, “To be unclear is to be unkind.” It’s true and will certainly prove as much if you do not define your goals. Be bold and take the lead when necessary. What all of this means is, you’ll have to lead by example. You must set the tone day in and day out so everyone has a chance to adjust. Eventually, a new normal, a better culture, will evolve. Have you taken over an organization and changed its culture? How did you approach the situation? What other tips and tricks do you suggest to change a company’s culture. Please share your thoughts and experiences by leaving a comment. Interested in learning more about business? Then just visit Waters Business Consulting Group. [shareaholic app=”follow_buttons” id=”26833294″]

Read More »