Podcast Summary
Leveraging the power of 'no' for sales success: Observing successful sales tactics, like getting customers to agree they don't want to miss out, can make it easier for them to say 'yes' to upsells and boost bottom line profit.
Understanding the power of getting people to say "no" before they say "yes" can be a game-changer in closing sales, particularly for bolt-on or upsell opportunities. This tactic, which was learned from observing the success of Richard Schwartz and Menno Schwartz's furrier business, can help drive bottom line profit and liquidate acquisition costs. This method is effective for simpler sales that aren't as complex as core offer sales. By getting customers to agree that they don't want to miss out on additional benefits or value, you can make it easier for them to say "yes" to the upsell. This simple yet effective strategy was a valuable lesson from the Gym Secrets podcast and can be applied in various sales scenarios.
Upselling: Offering complementary products or services to increase sales: Upselling can significantly boost sales by making additional offers seem like natural extensions of the core product or service, leading to a high upsell rate and customer satisfaction
Offering complementary products or services, also known as upsells or add-ons, can significantly increase sales in various industries. This technique is effective because customers often don't perceive these additional items as separate purchases but rather as necessary or desirable enhancements to their original purchase. The speaker learned this from an expert who achieved a 90% or higher upsell rate by making these offers seem like natural extensions of the core product or service. An example of this strategy in action was given by the speaker, who worked at a car dealership that sold fur coat storage services. By offering this service, the dealership was able to maintain a strong customer relationship and generate recurring revenue. The customers didn't view the storage fee as a separate purchase but rather as a necessary expense to keep their fur coats in good condition. The power of this sales technique lies in its ability to close deals more effectively. While a 20-30% upsell rate is considered normal, the expert's high upsell rate was achieved by making the additional offers seem like a natural part of the transaction, rather than a separate sale. This approach not only benefits the seller but also provides value to the customer by offering them a complete solution to their problem or need.
Offering a valuable incentive brings customers in: Provide an attractive incentive to bring customers in, then offer them additional value as an upsell
Offering a seemingly unrelated but valuable incentive can lead to increased sales and customer engagement. The podcast guest, David, used the example of offering free fur earmuffs in exchange for storing coats. Customers would come in specifically for the earmuffs but end up agreeing to store their coats as well. The conditioning of the coats was an upsell that added significant revenue. The key here is to make the incentive attractive enough to bring customers in, but not the primary focus of the interaction. Once the customer is in the door, the business can then offer additional products or services that provide value and generate revenue. This strategy can be applied in various ways, and the easiest one is to focus on offering a valuable incentive that brings customers in, while the primary product or service is an upsell. This approach not only increases revenue but also creates a better customer experience. So, think about how you can use this strategy in your own business to attract customers and offer them additional value.
Using 'no' to increase sales: Asking customers if they don't want to buy an item can lead to higher sales, as it feels less pushy than a direct 'yes' request. This technique, called an assumed close, can be effective in various sales situations, including upselling.
Using the psychological principle of agreeing to say "no" can significantly increase sales. This technique, also known as an assumed close, involves making a recommendation and then asking the customer if they don't want to buy the suggested item, instead of asking if they want to buy it directly. This approach can be more effective because people are often resistant to being sold to and may feel more comfortable agreeing to a "no" request than a direct "yes" one. This technique can lead to high take rates on upsells, with some businesses reporting up to 90% or more. The example given was of a weight loss program that used this technique to sell supplements, but it can be applied to various sales situations. Another example was given of a fur company that sold earmuffs and then suggested customers buy earmuff conditioners as an additional purchase. By using the assumed close technique, the salesperson can guide the customer towards making a purchase without feeling like they're being pressured.
Using 'no' to imply 'yes' for upselling: Businesses can profitably use customers' 'no' responses to imply 'yes' for upsells, such as coat check services offering additional services to accommodate customers' requests.
Utilizing the "no" response to imply a "yes" in hand-to-hand small upselling can be an effective strategy for businesses. The example given was of a coat check service where customers would insist on wrapping their own coats and storing their earmuffs, leading the employees to offer additional services as a way to accommodate their requests. People are often wired to say "no" to upsells, but in this scenario, they were inadvertently agreeing to them. This strategy can lead to significant profits, as demonstrated by the analogy of making more money on fries and Coke than on the burger itself. Many small business owners, especially those with brick-and-mortar or service businesses, may be missing out on these profitable opportunities. Therefore, it is highly recommended to employ this upselling technique.
Mindset Matters: Curiosity vs Dismissal: Approach new ideas with curiosity and creativity to gain a competitive edge. Don't dismiss them as irrelevant to your business.
Our mindset plays a significant role in the success of our business. Winners approach new ideas with curiosity and creativity, considering how they could potentially be applied to their business. Losers, on the other hand, dismiss new ideas as irrelevant to their specific business. It's essential to recognize which mindset you possess and adjust your actions accordingly. The ability to adapt and be open to new ideas can give you a competitive edge. So, the next time you encounter a new concept or strategy, ask yourself, "How can I use this in my business?" instead of dismissing it as irrelevant. Remember, every business is unique, but the successful ones are those that are open to growth and new opportunities.
