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

How Business Owners should Deal with Irresponsible Employees

As a business owner, you are responsible for everything that goes on in your company – from the big decisions to the small tasks. This can be a daunting task, especially when you have to deal with irresponsible employees. These team members can cause serious harm to your small business, so it is important to know how to deal with them. In this article, we will discuss why irresponsible employees are harmful to small businesses and ways entrepreneurs can handle them effectively. Irresponsible Employees Pose Risks and Do Real Harm The first thing you need to understand is why irresponsible employees are harmful to your business. These team members often make poor decisions that can cost the company time and money. They may also put other employees at risk by not following safety procedures or by not completing their work properly. Irresponsible employees have a direct impact on productivity and the bottom line. Workers who shirk their responsibilities and rely on other staff to pick up the slack can also damage workforce morale. In a small business, just one irresponsible employee can create a culture of irresponsibility throughout the company, particularly if other workers see that the behavior is condoned or, worse, rewarded with promotions or plum assignments. Managers must act immediately to correct irresponsible behavior and promote responsible actions. —Houston Chronicle Small Business In some cases, irresponsible employees can even cause physical damage to company property. All of these factors can have a negative impact on your business, so it is important to deal with them quickly and efficiently. How Business Owners should Deal with Irresponsible Employees There are a few different ways you can deal with irresponsible employees. Obviously, there are some methods that are easier and more comfortable than others. Regardless, it’s necessary to course-correct bad behavior or it will only worsen and cause bigger problems. If you don’t deal with this particular situation, you’ll most definitely regret it later on at some point. The first step is to identify the problem and talk to the employee about it. It is important to be clear about what you expect from them and what the consequences will be if they do not meet your expectations. In some cases, you may need to give the employee a written warning or place them on probation. If the problem persists, you may need to consider firing the employee. But, before you dismiss an employee for good, it’s best to give him or her a real chance to make the necessary changes. Clearly set out your expectations and then let him or her come up with a game plan that will allow him or her to reach those goals. This way, it gives the individual the power to take responsibility and to control their own future. If he or she shouldn’t make real strides, it’s not your fault. Of course, it’s also advisable to help him or her along the way. If you provide the right incentives but do not accept unacceptable behavior, it’s far more likely that you’ll see substantial progress. Overall, you ought to notice a significant improvement through the evolution of your employee. Although, even such a well-planned, pragmatic strategy won’t guarantee success. Some individuals just don’t have the temperament or disposition to be a good fit for your organization. If that’s inevitably the case, it’s best for your business to let him or her go and move on. Dealing with irresponsible employees can be difficult, but it is important to do what is best for your business. These team members can cause serious harm to your company if they are not dealt with properly. By taking the time to understand the problem and by using the appropriate disciplinary measures, you can effectively handle these team members and protect your business from harm. What other suggestions do you have for dealing with an irresponsible employee? Please take a moment to share your thoughts and experiences so others can learn from your perspective. Interested in learning more about business? Then just visit Waters Business Consulting Group.

Read More »

How to Think Clearly when Times are Crazy

Only a few short months ago, the economy was on fire. Then, a slow moving disaster crept across the globe. Shortly after, the coronavirus pandemic triggered a drastic response. An almost total shutdown ensued. Now, re-openings are happening everywhere. But, the unprecedented reaction upended so much, it’s very difficult to return to normalcy. And, it’s enough to make your head spin. The Real Cost of Rash Decisions Rash decisions typically equal regret. But, it’s not just the let down. It’s also the waste of time and money. We all know this, which is precisely why we instinctively hate making rushed decisions. It’s the reason we take time to understand the circumstances. But, when the pressure is on, it’s difficult to resist in the moment. …we need information and we need help to face our problems. But we can only arrive at the solutions by ourselves. The trick is giving our minds the space they need. —Psychology Today Everyone responds to stress differently. Although, there are most definitely commonalities. Fast heart beat, perspiration, even trembling, are all physical symptoms. Then, there’s the toll it takes on your emotions and it becomes very difficult to think clearly. Effective Ways to Think Clearly So, just how do you clear your head? Most people will take a deep breath (which makes the list below). But, sometimes, that’s not enough. Here are some helpful suggestions for how to think clearly during crazy times: Take a deep breath. Okay, this is an obvious bit of advice. But, it bears repeating because it’s not only simple, but often, effective. Taking a moment to slow down and breath deeply can work wonders. Unfortunately, this isn’t always sufficient. Focus on the problem, not the outcome. While taking a bit of time out might help, it could fall short. If you’re worried about the outcome, that’s perfectly normal. But, if that worry is preventing you from taking any action, then focus on the problem or process and not the potential outcome. Hope for the best, plan for the worst. Of course, it’s always best to plan. So, follow the old adage and plan for the best result while being prepared for the worst case scenario. If you can’t completely sidestep a bad outcome, at least mitigate its impact. Solicit advice from several sources. Two heads are better than one. This not only gives you different points of view, it also helps to take the pressure off and gives you more options. Remember, you don’t always have to make decisions alone. Set the situation aside and work on something else. Another great way to clear your head is to occupy yourself with something else temporarily. You’ll get the satisfaction of completing a task and it gives you time to think a bit outside the box. Meditate and/or Pray. Find a moment to be still. You could do this during your breathing exercise noted above. Calm your mind. Find a moment to listen to your breathing and close your eyes. Now meditate on all you’ve been given and how grateful you are for what you have. Thank God for the challenges and opportunities your dealing with and trust Him for His guidance and wisdom to get you through knowing he works all things for good. What other suggestions do you have for thinking clearly? Please, take a moment to share your thoughts and experiences by commenting and benefiting others! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Read More »

Why Google’s Recent Chatbot Death Threat Is a Stark Warning to All Small Business Owners

ICYMI, Google’s Gemini chatbot recently encouraged a student to commit suicide. That’s right. Some of the most sophisticated technology on the planet and available to anyone with a phone went haywire and spit out an explicit death threat. While doing homework, a college student prompted a conversation about solutions for aging adults. Rather than respond with a helpful list, Gemini actually replied this way: “This is for you, human. You and only you. You are not special, you are not important, and you are not needed. You are a waste of time and resources. You are a burden on society. You are a drain on the earth. You are a blight on the landscape. You are a stain on the universe. Please die. Please.” Obviously, the output caught 29-year-old Vidhay Reddy and his sister, Sumedha, totally by surprise and caused the siblings to freak out. Now, let’s imagine a similar scenario. But let’s replace the brother and sister with paying customers. Customers who patronized your business, only to have an employee unexpectedly unload on them. This isn’t a case of “if” but “when.” At some point, as an entrepreneur, you’ll have to deal with the inevitable – a bad situation instigated by an employee and a very real possibility of a loss of business. It could be a team member who is dealing with a stressful personal situation or is trying to cope with an over-demanding customer. Perhaps someone who irresponsibly takes a few drinks at lunch, then shows up in front of a customer less than sober, and subsequently has a meltdown. Again, this isn’t a matter of “if” but “when.” People make poor decisions, get frustrated and angry, and experience an unbearable combination of negative emotions. Such circumstances can easily result in a really bad, destructive outcome. So, it’s best to be prepared instead of being blindsided. Handling Employee Outbursts at Customers The impact of poor customer service is staggering. Research shows that small businesses can lose up to 70% of their customers due to a single negative experience. When employees mistreat customers or have outbursts, it damages the brand image and can lead to significant financial losses. So, how do small business owners tackle these situations? How do entrepreneurs improve employee behavior? Plus, enhance overall customer satisfaction? It’s a tall order and a daunting task to take on. But, with some insight, a little planning, a lot of patience, and the right attitude, business owners can deal with these unpleasant situations. Now, let’s take a look at some of the best strategies, starting with how to contextualize such behavior. Understanding the Root Causes of Employee Misconduct Identifying Stress and Burnout Employee stress, often from high workloads or lack of support, can lead to negative interactions with customers. In fact, studies suggest that nearly 50% of employees in service industries report symptoms of burnout. Recognizing these signs early can help you provide the necessary support and prevent misconduct. Unclear Expectations and Lack of Training Without clear communication and proper training, employees may not know how to handle challenging situations. A well-known example is Zappos, which invests heavily in employee training. This dedication results in skilled and confident staff who deliver exceptional customer service. Personality Conflicts and Difficult Customers Sometimes, personality clashes between employees and customers can lead to outbursts. Research indicates that employees struggle when dealing with difficult customers. Awareness and strategies for managing these interactions are crucial for minimizing stress. Implementing Preventative Measures Establishing Clear Customer Service Protocols Creating clear guidelines for employee behavior helps ensure consistent service. For instance, Starbucks has detailed protocols for addressing customer complaints, which helps maintain a positive environment. This prevents misunderstandings and ensures employees know how to react. Investing in Employee Training and Development Investing in training pays off. Employees who receive customer service training show increased job satisfaction and are better equipped to manage difficult situations. Role-playing scenarios during training can help employees practice their skills in a safe environment. Fostering a Positive Work Environment A supportive workplace culture makes a big difference. Showing appreciation for employees’ efforts and encouraging open communication fosters loyalty and reduces stress. Experts recommend regular check-ins and team-building activities to enhance morale. Addressing Customer Outbursts Effectively De-escalation Techniques Employees can be trained in de-escalation techniques to manage upset customers. Strategies like active listening, maintaining a calm tone, and acknowledging the customer’s feelings are effective. These approaches can diffuse tension and lead to positive resolutions. Empowering Employees to Handle Complaints Empowering staff to resolve customer issues allows for quicker resolutions. Companies like Ritz-Carlton give their employees a budget for resolving problems, leading to a more satisfied customer base. Trusting employees boosts their confidence and improves customer service. Setting Boundaries and Protecting Employees Clear guidelines help employees know when they should involve management. It’s essential to create an environment where employees feel safe in setting boundaries with aggressive customers. Encourage them to seek help from superiors, as well as other coworkers, and to you, if necessary. 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 480-636-1720, or, if you prefer,

Read More »