customer satisfaction

“For a Dollar More, You Can Get a Large”- Upselling 101

We’ve covered selling in a general sense and gone into detail about cross-selling, the next item on the list is upselling.

With upselling, you’re selling a person a better, more expensive version of whatever they were initially planning on buying. If you’ve ever been to a movie theater or fast food restaurant, you’ve probably experienced upselling in the form of “For a dollar (or so) more, you can get a large.” You were already thinking of getting this meal anyway- the upsell increases the quantity of popcorn you were planning to get, and the movie theater makes more money.

Back to the baby registry example I used in the cross-selling post, Amazon also has a subtle upselling option. You can see “Customers Also Viewed…” which will offer a similar product from different brands at different price points (I say subtle because some options are cheaper and some are more expensive). Another potential upsell on Amazon is the comparison chart that appears with some products. I definitely poured over these, and the reviews, when creating my registry.

Again, just like with the cross-selling example, you can offer upselling options on your own website in a similar way.

General Facts/Tips for Upselling

While the whole concept of “For a dollar more you can get a large” may feel weird or gross to offer customers, it’s been argued that it can actually increase customer loyalty/retention. But how?? You’re just tricking them into spending more money, right? Not really. This article gives an example of upselling a service (car insurance). While the customer was calling their insurance company for a tow truck, the company mentioned “Hey, you’ve been a customer for X number of years and are now eligible to upgrade to a better insurance plan”. Since the person had been a customer for such a long time, and they had to wait for the tow truck anyway, they said “Yeah, why not.”

How does this create customer loyalty/retention? Knowing that you are eligible for greater benefits as time progresses increases the chances someone will stay on as a customer for longer (provided there’s already a value in the service/product). Additionally,  the same article suggests upselling should be a win-win- your customer should feel like they are “winning” (but not in the Charlie Sheen sense).

An example of upselling where the customer doesn’t feel like they are winning: when a cable company tells you you’re eligible for a month long trial for 100 extra channels (yes, please!) but you unknowingly stay signed on and have to pay additional fees the next month. Not cool, don’t do this to people.

How to Upsell

Unlike cross-selling, it’s a little trickier to upsell after the sale has happened (unless the customer decides to return their purchase for something more expensive, which is pretty inconvenient when you think about it).

Here are a few ways you can help make the upsell happen.

Educate your customer.
 Comparison charts, videos, blog posts, and other methods to educate them about the difference between different products/services (and subtle justification of price differences) allows the customer to be open to be upsold.

Be ready to bundle.
If you want to upsell your kayak tour consumers with optional $10 Otterbox rental and $15 gourmet lunch, it makes sense to bundle products together for a lower price point when it makes financial sense.

Show your bestsellers.
Kissmetrics has pointed out that upselling happens fairly infrequently (4% of sales), but one of the ways to increase your odds is by recommending the most-sold items in your store. It’s probably a social thing- I will second guess my purchase if I see that the majority of people are buying this other thing. Even if I end up sticking to my guns, I’ll at least check it out.

Start with current customers.
Upsells work much better for existing customers. A recent example of this is me getting up-sold on for Beachbody Coaching. I had been using their on-demand workouts anyway as a result of not being able to run, but when asked if I wanted to become a coach at a greater cost to get some additional perks, I agreed. Why? Because I already knew the value of the stuff I was paying for, so I was okay with paying a little extra a month for things I was already going to use anyway. To me, it was a win-win.

Offer packages, including one very high end one.
An example of this is from a pinup photographer in Texas who offers four packages from $450 to $2250. Her most popular package is $850, which people feel much less bad spending money on when they see they could be spending more than double that. Most consumers buy the mid-tiered price item so give them options.

Setting Up Upselling Online

Use Your Existing Ecommerce Software
To implement upselling on your own ecommerce site, Woocommerce has a pretty straightforward interface for upselling (very similar to what they use for cross-selling, actually). Check with your ecommerce software’s FAQ section with how it is set up in your software.

Use Your Website Content To Help People Choose
If you have a list of services on your website at higher price points that people hem and haw at (and opt for the cheaper option), you can educate people in a few ways:

  1. Set up an FAQ page to make sure people know exactly what they’re getting and can determine what is beneficial to them.
  2. Create a multiple choice “Should I choose X or Y?” Some websites do this with a quiz, others with a features comparison chart. This allows a side by side comparison of two (or more) options.

Going through this process shows that you are invested in what the customer actually wants and what would work best for them: “Sell the benefit, not the product.” In other words, you may see the benefit for a person to buy the higher priced item but you may have to help them realize the value your product/service will add to their life.

Make It Exclusive
If you feel like creating a little mystery, allowing only certain people to buy a higher level item (think credit card companies with certain credit cards only a very exclusive group of people can apply for) can add to its mystery.

Think About Your Website Design/Copy
There are certain ways to make your website work better for upselling. One way is to run A/B tests with different designs/copy and see which give more sales. This is called working smarter, not harder! Learn more about A/B testing here.

In short, upselling is not a sleazy practice but one that builds customer loyalty in addition to benefiting your business.  

Kassie is a distance runner and a distance reader really. She lives in Ellsworth Maine and, while she might be quiet when you meet her, will throw out something witty when you least expect it.

How to Write a Good “How To”

It was 11 p.m. on Christmas Eve, 1997. My Dad embarked on a solo mission to the garage to assemble a basketball hoop for my brother and I. Armed with a tool kit, a set of instructions, and the kind of confidence you get from a neighborhood Christmas Eve party, he was ready…or so he thought. Around 1:30 a.m., he had assembled the entire hoop. Backwards. Next steps were taking apart the hoop, waking up my mother, and reassembling. They finished in time (4 or 5 a.m.) to get about an hour of sleep before we woke up, and Santa got all the credit.

Have you ever been totally frustrated by a how-to, online or offline? There’s nothing more frustrating than trying to follow instructions or a tutorial that doesn’t do a great job of explaining how to do something. You may even end up abandoning the project, and worse, harbor a bit of resentment towards the people/company who made such terrible instructions in the first place.

To avoid being the target of someone’s wrath because you’ve written poor instructions, this post is here to guide you through creating a how-to that guides people from start to finish with minimal frustration. Remember, most people “read instructions when they are impatient, fatigued, or even terrified” (see above Christmas Eve anecdote).

Consider your audience. If you’re writing a how to for the general public vs. a specific task for an employee, your instructions will probably look a little different (assuming the employee has some industry/insider knowledge, compared to a random person on the street who probably has no idea what you do).

Introduce the objective/end goal. What is the end result a person should have at the end of these instructions? This can just be one or two sentences, nothing crazy.

List all materials. This is the place where it’s important to be thorough and organized. For instance, if your product is a model airplane, include a list of a) materials included and b) additional materials needed before starting the project. If there’s something that would make the project easier, but isn’t necessary, include it in a “recommended materials” list.

Write instructions as commands. I’m guilty of slipping into passive voice, but when it’s time to give instructions things like “and then you will want to…” or “it should look like…” don’t instill a lot of confidence. People are looking to you for direction, so don’t be afraid to sound bossy.

Don’t get jargon-y. You know what people hate, especially when they’re trying to figure out how to do something? Feeling dumb. If you’re writing instructions that include a lot of jargon or words that people who don’t work in your industry will understand, it’s probably going to be more frustrating than helpful. If you do need to use industry terms to explain something (or name a part, for instance), include a picture showing what it is exactly (you may be surprised how many people find this helpful).

Speaking of visuals, these can be a great thing to include in your how-to (especially since we’re assuming you aren’t using video here). Even in your list of materials, depending on what they are, could include a visual next to each item showing what it looks like. If it’s an assembly project, showing the progress after each completed step assures people as they’re moving through the instructions that they aren’t just blindly going about things and hoping it comes out the way it’s supposed to at the end.

Have someone else read through. Chances are, if you’re writing instructions about something, you are already fairly good at it. Having someone who’s less familiar with the process, or at least some degree of separation, could provide a bit of insight toward where your instructions are unclear. If you can’t get an extra set of eyes, wait a day or so and try to follow your own instructions from scratch, taking notes on areas that could use more clarification.

Although the Christmas Eve basketball hoop incident was mainly user error, it’s an experience we all want to avoid giving to customers if possible. Keep in mind the toughest audience is people who are going to have the hardest time generally: those who are “busy” and/or “grouchy.” This additional resource below can help you cater to that particular group:

 

Instructions: How to Write Guides for Busy, Grouchy People

 

 

Kassie is a distance runner and a distance reader really. She lives in Ellsworth Maine and, while she might be quiet when you meet her, will throw out something witty when you least expect it.

Employee Satisfaction, à la Buzzfeed

So, you may or may not be aware that I spend a lot of time, um, researching, on Buzzfeed. Something that has stuck out to me lately is the way they use employees to humblebrag about their work environment. In June, Buzzfeed employee Justin accidentally sent an e-mail about running late because the hot water in his apartment building wasn’t working to the whole Buzzfeed community. Rather than being embarrassing and disastrous, the result was embarrassing and hilarious.

And, there was even a message straight from the top.

And, there was even a message straight from the top.

 

 

Another example of Buzzfeed employees at “work” is this post about a couple girls who decided to try their hand at Tarot Card readings. Two of them drew cards and answered questions based on what they assumed the cards meant. A third woman with actual experience with Tarot readings then chimed in. It’s pretty hysterical, and worth a read if you have some time.

tarot_buzzfeed

http://www.buzzfeed.com/rachelysanders/idiot-tarot

What do these examples of employee tomfoolery have to do with my business, you may ask. Well, there’s a lesson in employee satisfaction within these Buzzfeed articles. Here’s the breakdown on what satisfied employees can do for your business:

1) Happiness Factor:  If you take a business management class (or, a marketing class in my case), you will probably be told that the key to customer satisfaction is employee satisfaction. This isn’t rocket science, I suppose: the faces of your employees equals the face of your business. Ideally, the face of your business is a happy one. On the flip side, if the face of your business has a rather sour disposition, people are less inclined to come back as repeat customers.

This Business Insider list shows the “Happiest Companies” in America this year. Curious about how one quantifies happiness, I looked into their methodology. The components of happiness in a job include: cash compensation (i.e. salary, bonuses, commissions, tips), stress level, flexibility around work schedule, and meaningfulness of the job (i.e. are employees made to feel that their job is important?).

So, while you may not be able to increase salaries or give bonuses, you CAN make changes to the work environment, and turn it into a place that employees love. Remember, you want the face of your business to smile (like it means it).

Interestingly, there are a lot of petroleum companies on this list... http://www.businessinsider.com/happiest-companies-in-america-2014-4

Cities with the happiest employees 
http://www.businessinsider.com/happiest-companies-in-america-2014-4

 

2) Engagement Encouragement  The example of Buzzfeed may be a bit extreme in terms of goofiness, but it shows that you can encourage employees to showcase your business. Justin was able to show off the Buzzfeed work environment by posting the various responses to his e-mail, including one from the CEO. While reading the post, I was thinking, “Man, these people are so clever! It would be so fun to work with them. I think I love Buzzfeed EVEN MORE NOW!” 

Encouraging employees to engage in the business in a fun way has a few benefits: self-promotion (in a subtle way), increased productivity, incentive to go above and beyond the call of duty, and overall better quality of work.

This article from Forbes describes the relationship between employee satisfaction and business performance in greater (and more technical) detail. There is also this flow chart:

Screen Shot 2014-07-11 at 1.59.09 PM

http://www.forbes.com/sites/kevinkruse/2014/01/07/employee-engagement-the-wonder-drug-for-customer-satisfaction/

3) “We’ve Got Your Back”  This idea goes along with encouragement. If, for instance, the girls doing Tarot readings were somehow disciplined for their post, they a) would lose incentive to engage with the company and b) wouldn’t be convinced that Buzzfeed had their backs.

When a business or boss tells their employees “Yes, please go ahead and do X. That would be great”, following through and standing behind employees who do X is important. Unless they are completely missing the point of the task or botching it, punishing them will generate feelings of betrayal, and all incentive they have to do X.  And perhaps any other future task that’s asked of them. Basically, it’s all a downward spiral. Don’t create trust issues with your employees. 

Of course, I consider myself a satisfied employee here at Breaking Even… which may have something to do with Nicole indulging my Buzzfeed habit.

Kassie is a distance runner and a distance reader really. She lives in Ellsworth Maine and, while she might be quiet when you meet her, will throw out something witty when you least expect it.