Adding Value with Expansion Selling

  1. 15.4 Explain how to add value with expansion selling

Personal selling is the process of identifying and filling the customer’s needs. As the salesperson learns more about the customer and establishes a relationship based on trust and mutual respect, opportunities for expansion selling will arise. Expansion selling can take three forms: full-line selling, cross-selling, and upselling.

Full-Line Selling

Full-line selling, sometimes called “Suggestion Selling,” is the process of recommending products or services that are related to the main item sold to the customer. The recommendation is made when, in the salesperson’s judgment, the product or service can provide additional satisfaction.

To illustrate, let us look at the sale of new homes by KB Home (www.kbhome.com), a builder of large, planned communities. Customers who want to differentiate their home from those down the block are offered an array of options such as marble in the entryway, granite countertops, gourmet kitchen appliances, or Jacuzzi-like tubs for the bathroom. Customization has proven to be a popular, value-added service to customers.28

Full-line selling is no less important when selling services. For example, a travel agent has many opportunities to suggest related products. Let us assume that a customer purchases a two-week vacation in Germany. The agent can offer to book hotel reservations or schedule a guided tour. Another related product would be a rental car. Sometimes a new product is simply not “right” without related merchandise. A new business suit may not look right without a new shirt and tie. An executive training program held at a fine hotel can be enhanced with a refreshment break featuring a variety of soft drinks, fresh coffee, and freshly baked pastries.

Customers may view full-line selling as a form of value-added service when it is presented correctly. There is a right way and a wrong way to make recommendations. Some guidelines to follow include:

  1. Plan for full-line selling during the preapproach step. Before meeting with the customer, develop a general plan that includes your objectives for this important dimension of selling. Full-line selling is easier when you are prepared.

  2. Make recommendations after you have first satisfied the customer’s primary need. Although there are some exceptions to this rule, it’s usually best to meet the primary need first. In the case of a new home purchase from KB Home, the customer should first select the model home and then make decisions regarding the upgrades.

  3. Make your suggestions thoughtful and positive. “We will deliver your new copy machine on Monday. Would you like us to deliver some quality copy paper?” Avoid questions such as, “Can we ship anything else?” This question invites a negative response.

  4. When appropriate, demonstrate the suggested item or use sales tools to build interest. If you have suggested a shirt to go with a new suit, allow the customer to see it next to the suit. If you are calling on a commercial account, show the customer a sample or at least a picture if the actual product is not available.

Full-line selling is a means of providing value-added service. When you use it correctly, customers thank you for your thoughtfulness and extra service. It is also a proven sales-building strategy.

Cross-Selling

We have seen an increase in the use of cross-selling to grow sales volume. Cross-selling involves selling products that are not directly associated with products that you have sold to an established customer.29

A growing number of companies are using cross-selling to discover additional sources of business within established accounts. Buyers often welcome cross-selling efforts because they are searching for ways to consolidate purchases. They like the convenience of buying several items from the same source.30 Cross-selling is most effective in those situations in which the salesperson and the customer enjoy a true partnership.

Salespeople who have a good understanding of the customer’s needs and have earned the customer’s respect will face less resistance when recommending a product or service. To achieve success with cross-selling, you need to use survey questions and probing questions (see Chapter 11). A general survey question such as “Can you tell me more about your expansion plans?” may uncover information needed to position your cross-selling sales strategy. However, you will likely need to use probing questions to uncover and clarify a buying problem that may open the door to a cross-selling opportunity. Keep in mind that cross-selling has to be a well-thought-out part of your strategy and process.31

Upselling

The effort to sell better-quality products is known as upselling. It is an important selling method that often adds customer value. Mike Weber, sales manager at Young Electric Sign Company, offers us two important tips on upselling. First, you need a well-established relationship with the customer—a relationship built on trust. Second, you need to continuously qualify the prospect throughout the buying process. As customers tell you more about their needs, you may see an opportunity to upsell. Weber says his salespeople often engage in upselling at the design stage. The customer is shown a rough sketch of the desired sign and another rendition of something better. The added value of the more expensive option will often become obvious to the customer.32 In many selling situations, such factors as durability, comfort, or economy help justify the higher-quality product. A professional salesperson explains to the customer why it is in his or her best interest to spend “just a little more” and get the best value for the dollar. Most customers are more concerned with making the right purchase than they are with making the least expensive purchase.33

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