Business expansion is one of the main goals of all organizations. While many try to achieve this with their CRM by qualifying new leads, they often forget one of their main assets: their current customers. Fortunately, a customer’s revenue doesn’t stop after the deal is closed – this is where cross-selling, upselling, renewals, and referrals come into play. So, let’s discuss how you can leverage these strategies to grow your business. According to a recent report we conducted, 33% of the respondents claimed that the most important part of the buying journey over the last five years is customer service and creating upsell/cross-sell opportunities.
Cross-Selling: What Is It?
Cross-selling is a sales strategy that encourages current customers to look into and potentially invest in products and services that work in conjunction with the primary purchase. For instance, if one of your customers has already purchased a laptop from your business, cross-selling would encourage them to buy a headset or a mouse compatible with said laptop.
Most businesses today offer products and services that complement each other and can elevate the customer experience when used in tandem. And for you, as a business, it’s the perfect opportunity to generate a higher revenue. This is a win-win situation for both your customers and your enterprise.
Upselling: What Is It?
Unlike cross-selling, where you present current customers with complementary products to their existing purchases, upselling usually involves upgrading a particular product or service. Any upgrade, enhancement, or premium version of your products/services is an upselling opportunity.
Using Your CRM to Elevate Cross-Selling and Upselling Opportunities
Now that we have established the two selling methods, how can you leverage those without bombarding your customers with phone calls and marketing materials and potentially losing them?
The most effective way is to use a CRM tool and the stored data to better understand your customers’ needs, preferences, and buying behaviors. Based on the provided data, you will personalize your messaging and what products or services you are offering to elevate and enhance their experience.
1. Segment Your Customers
One of the best ways to leverage your CRM to aid your cross-selling and upselling opportunities is via segmentation. You can split existing customers into different groups based on demographics, browsing behavior, feedback, loyalty, and purchase behavior. A good example would be to segment existing customers into new, repeat, and loyal customers and start from them to grow your cross-selling and upselling strategies. Another good suggestion would be to segment your customers based on product preference, purchase frequency, and average order value. In this case, using your CRM, you can target them with relevant information, marketing materials, and product recommendations.
2. Look Into Data
Looking into your customer’s CRM data will help you better personalize your offer and provide products and services that are relevant to them. Your CRM tool can offer detailed information on your customers based on various sources: marketing interactions, website clicks, website carts, social media, email, or even chat interactions. Your CRM can then compile and interpret the data it gathers and extracts insights and patterns, especially in the presence of an AI-enhanced CRM. Again, data is an excellent source to make pertinent recommendations to your clients when the timing is right.
3. Build Customer Relationships Across Multiple Channels
A CRM is the perfect tool to engage with customers across multiple channels. Properly used, your CRM can integrate with and synchronize various communication channels. Omnichannel communication allows customers to start conversations on their preferred platform and effortlessly switch between these channels without worrying about lost information or details. You can use your CRM’s email, SMS, social media, or web analytics to track behaviors and needs. Then, using the same CRM, you can automate and personalize your upsell and cross-sell campaigns and messaging to more effectively deliver your messaging. Whether discussing abandoned cart messages or offering them a discount for your premium services, a CRM is the right tool to identify the best accounts you can act upon and automate your initiatives.
4. Monitor and Optimize
Once you start implementing your cross-selling and upselling initiatives, you must closely monitor the results. And the best way to manage this is by using your CRM, naturally. Look into conversion rates, revenue per customer, customer lifetime value, and retention rates. These indicators will help you better understand the success of your initiatives. Besides, based on the data provided, you can continuously adapt and adjust your strategy to increase these indicators. One of the best ways to use your CRM to improve your cross-selling and upselling techniques is to A/B test different offers, messages, and channels and decide which works best for your particular case.
5. Build a Loyal Customer Base
Your CRM is the perfect tool to boost customer loyalty through loyalty programs, incentives, rewards, and offers. Integrating it with a Customer Service automation system allows you to provide stellar experiences to your customers, even when they face difficulties using your products, services, etc. Your CRM can also gather feedback and recommendations to improve your products and services. Plus, a thank-you note on your customers’ anniversaries to show appreciation never hurts when it comes to customer experience.
Building customer trust can boost satisfaction levels, retention rates, and, most importantly, brand advocacy.
If you want to learn more about how you can use your CRM to support your growing business, watch our Sugar Enterprise: CRM That Keeps Up with Your Growing Needs video or get in touch with us!