How to Use Cross-Selling Techniques
to Increase Your IT and Professional Services Sales . . . Right Now
by Paul DiModica
To increase technology or professional service sales performance and increase customer account lifetime value, the tool of cross-selling is a key business driver that when used correctly can close complicated sales opportunities, eliminate competitive issues, and create a "visual value" of your market differential.
When cross-selling is deployed incorrectly, it can confuse buyers, delay sales cycles, waste marketing expenditures and often induce prospects to ask for discounts. So managing your offers and packaging is important to make cross-selling a successful sales tactic.
Here are 15 successful techniques you can use to increase your IT business success.
15 Techniques to Make Cross-Selling Work
- When selling prospects, always have them complete an assessment (20-50 questions) to help determine what type of packages you can wrap and offer to them.
- Cross-selling should be a pre-developed company-wide technique, not an individual salesperson's option to close a deal.
- Develop at least three packaged offers with specific price points targeted at prospects based on their title (the VP of Marketing Package at $50,000, the Marketing Manager Package at $8,000, etc.).
- In cross-selling, timing is important. Do not use cross-selling as a loss leader during the pre-sales process if the prospect has not selected your firm yet. Instead, use cross-selling as way to close the deal by adding value or to increase profit per sales. Add value; don't discount.
- Always offer three different pricing options with the middle offering being your targeted goal of your average sale (i.e., Option A for $10,000, Option B for $20,000, or Option C for $30,000).
- Name your cross-selling offer based on the title and industry that you are trying to sell to (i.e., the Executive Operational Assessment for $50,000). Remember, sell blue shoes to blue shoe buyers.
- To increase your cross-selling success, package all services as a product. This makes it more digestible for prospects to buy.
- Bundle products and services together as one offering for a flat price, spreading your gross margin over the entire price.
- Make cross-selling time dependent. (i.e., if the prospect makes a decision to go with your firm by September 1 and you would give them 14 months of support for the cost of 12 months).
- Always have "visible" cross-selling packages that tease prospects to seek you out, but also have "hidden" packages that you hold in reserve to use as a negotiation tool when needed.
- Never offer more than three cross-selling options to existing customers or new prospects. Too many options confuse buyers and extend sales cycles. Less is better.
- Analyze your customer purchases for the last 24 months and develop specific packaged cross-sell offers based on their needs, not yours. "Mine" your current customers for premeditated sales opportunities.
- Always offer a "one sheet" brochure of your packaged cross-selling offer.
- Develop a planned cross-sales program based on a 12 month timeline where you contact existing customers on scheduled dates to offer them a pre-packaged offer that is time dependent.
- Develop cross-selling packages based on sales objections. The "Your service costs too much" sales objection gets offered Option A; the "I am going to make the decision next month" sales objection gets offered Option B.
Cross-selling is a premeditated revenue capture model. To sell more, develop a proactive approach where your cross-selling is a planned sales process . . . instead of a reactive process.
Remember: "A mediocre salesperson tells. A good salesperson explains. A superior salesperson demonstrates. A great salesperson inspires buyers to see the benefits as their own."
Anonymous
To your IT revenue growth,
Paul R. DiModica
CEO-Founder
Value Forward Group
IT Business Growth Acceleration Specialists
(770) 632-7647
www.valueforward.com Writers Resource Box
| Paul DiModica founder and CEO of Value Forward Group and the senior
practice consultant in our firm. In addition to delivering content-rich speeches on marketing, strategy
and sales best practices, Paul is the editor of the world’s
largest sales, marketing, strategy and financial management newsletter called High Tech Success read by over 160,000 weekly subscribers in over 110 countries.
Paul has been featured or interviewed by the New York
Times, Investors Daily, Fox News, Selling Power Magazine,
Sales and Marketing Magazine, CIO Magazine, CFO Magazine, Entrepreneur
Magazine, Training Magazine, Marketing Magazine, The Manager's Intelligence Report,
Agent's Sales Journal, Time Compression Technologies Magazine,
Minorities and Women Magazine, Broker Agent News, Pennsylvania
Business Central Magazine, and
many others. For more information, visit http://www.valueforward.com |
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