Often when looking for new sources of sales revenue you have two options.
- Win more new clients
- Upsell existing clients
Upselling may not be as fun as closing brand new clients, but it can be just as lucrative. It can be a faster win if you have a proven and successful relationship with the company already that can be leveraged. Upselling, like traditional selling, requires you to probe, qualify and identify how your product or solution can add value to another group or person within your client. You still have to make a pitch, build a relationship and drive value. Ultimately you have an internal reference backing you up which is gold.
For one client, I had sold a small, five figure deal to a smaller division. I knew that my key contact and his counterparts in other divisions met once per year to discuss corporate strategy and future plans. I had a good, solid working relationship with this person, built up over a year and our product was driving value for his group. I asked him whether there was an opportunity to get in front of his peers in other divisions and he suggested I introduce them to my solution at their next upcoming event. Oftentimes, at this event they would review products that were providing value and could be leveraged by other divisions in the company. Perfect. So the day of the presentation came, I pitched to eight additional divisional representatives using our current client as a case study with proven metrics. This presentation led to eight demos, six proposals and ultimately four new sales in the following fiscal year. After that, I was able to sign on an additional two divisions the subsequent year. This brought my five figure revenue number for this client, to north of $500,000.
There are a number of upselling essentials to consider when putting in place a strategy, these include:
Asking For Additional Business
One of the first things I learned when selling was to ask for the business and the same rule applies here. You have to ask your client for a referral or if there would be an additional need. Oftentimes your contact is focused on their daily goals not those of another divisions.
It is Not For Every Account/Customer
I would remember that upselling is only effective when you have a solid relationship with your current contact. You have to have proven yourself and have driven tangible success. In addition, depending on the location of the divisions or what they do, a little upfront research here wouldn’t hurt – they may or may not be a good fit. I remember one company I had sold to had only one North American office and the remaining offices were in Europe and Asia. The particular company I was working for could not support sales outside of North America at the time, so there was really no upsell opportunity.
Do Your Research and be Prepared
Speak with your existing prospect before formally presenting to the new contact, ask some probing questions to qualify the fit and area of need. Once identified, tailor your message to suit. Going in well prepared and drilling right into how you can help, not only saves time, builds confidence in you and your solution.
Being Seen as a Consultant and a Trusted Partner
True sales success is developing and then delivering a win-win result. Companies in today’s market are looking for partners to help them succeed, not simply a product or service. They need to know you are there to help support them in their goals and will provide honest feedback and advice. Trusted relationships sell and help drive more upsell opportunities.
Base Your Success on Quantitative Measures
I have touched on it earlier in this piece, but providing your client with quantitative results and enabling them to take these results and meet their goals is a huge win, numbers talk. Great numbers backed up by a strong and supportive relationship will win almost every time. For one client, we were able to help them close a new account and their solution decreased this firm’s operating expenses by 30% across the board. It also provided more flexibility and better asset utilization. The client was impressed with the number and provided an opportunity to meet a colleague of his in another operating group of the company.
Follow the Sales Process
Sales is process, it is a methodology. Whether you are cold calling or upselling keep following it. Diligence and persistence pays off. Sales success often comes after the first, second and third calls. Be sure to continue to press (politely) unless you hear otherwise.
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