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Cross–selling and Up–selling via eMarketing campaigns
New customer acquisition can take a long time. A painfully long time. So, how can you increase
revenues in the short term? Cross–selling and up–selling (see below for definitions) are two
methods used by many companies as part of their standard sales strategy. Both Cross–selling
and Up–selling increase customer loyalty and reduce the chances of your customer switching to
a competitor.
Cross–selling and Up–selling via eMarketing in four simple steps
Just like face-to-face selling, eMarketing permits direct communication with the customer.
Unlike face-to-face selling, however, the costs are low. It makes sense, therefore to use
eMarketing as a way to communicate your offer and find out who responds, before committing to
the significantly higher costs of a face–to–face sales visit.
Step 1 Identify your offer.
You probably have a series of standard offers for cross-selling and up-selling. Your sales
team will know all of them - but your customers may not. Start by choosing one offer that has
worked well in the past and then
Step 2 Identify the customers who have taken up that offer in the past.
What characteristics do they have in common? Now apply those criteria to the entire customer
base to define your target group.
Step 3 Brief the sales force.
Let the sales team know that the cross–selling / up–selling offer will be made via eMarketing
to the target group for a fixed time period. And set up the eMarketing project so that details
of the customers who respond positively to the offer are sent – automatically – to the
appropriate member of the sales team.
Step 4 Measure your success.
Split the target group and send the offer to 90% of the list. The 10% who do not receive
the offer are your control group. By measuring how much revenue the control group generated
without the offer, you can prove how much extra revenue was generated by those who did take
up the offer. By comparing the extra revenue earned against the resources needed to run the
promotion, you’ll be able to identify the Return on Marketing Expenditure (RoME) for the promotion.
Whether you’re company is new to eMarketing or already has experience, the Ansaco eMarketing
Promotions Seminar is an excellent way to get your plans off on the right foot. Together, we’ll
review your product and service range, identify offers and the relevant target groups, establish
the criteria that the sales team needs for effective qualification, and set up the sales
promotion calendar for the next quarter.
The Agenda for the one-day seminar typically comprises:
• Standard presentations = 10%
• Company-sepcific issues = 90%
Ansaco can also execute and measure the impact of cross-selling and up-selling promotions
to your existing customers. We can design eMarketing campaigns that are designed to generate
sales leads for specific product or service offers. We will include automatic processes for
passing qualified leads on to the appropriate member of your sales team, too. We will also
create the reports that enable you to accurately measure the financial impact of your promotions.
To find out more about Ansaco’s Consulting services, please email:
eMarketer@ansaco.de
or phone us at: +49 6221 6568 475.
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Definitions of Cross-selling & Up-selling
Cross-selling
Cross-selling increases the scope of your relationship with an existing customer by selling
additional products. Some examples. You sell products? Cross selling extends the relationship
by adding a service contract. You sell a basic product? Cross-selling offers the add-on extras,
the accessories, the additional items that multiply the benefits of your products for the
customer at minimal additional cost. A major advantage of cross-selling is that it increases
the customer’s reliance on your company.
Up-selling
Up-selling is a related sales technique that increases the value of the order. Up-selling
comes in various forms. You can offer the customer the de Luxe version (instead of the basic
product), offer upgrades to replace an older model, offer incentives for larger volumes or
other add-ons to make a bigger sale. Up-selling may also mean offering the products or services
that provide the higher profit margin. At its simplest level, up-selling can offer the products
and services the customer hasn’t bought so far. Implemented correctly, up-selling is cost-effective.
The additional revenue is earned from customer visits which the sales team would have made anyway.
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Customers
Organisations that we have supported with our eMarketing experience and insights include:
Deutsche Investment Trust, Dun & Bradstreet Germany, Field Fisher Waterhouse, Miltenyi Biotech, Pivotal Corporation, SAP AG.
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