The Art of the Upsell with Nikki Rausch
Jun 26, 2024In a recent episode of "Keep What You Earn," Shannon and sales expert Nikki Rausch explored the art of the upsell, a crucial skill for entrepreneurs. Effective upselling, as Nikki explained, revolves around two key strategies: price anchoring and creating curiosity among existing customers.
Price anchoring is a psychological strategy that sets the perceived value of a product or service. Nikki referred to it as "top-down selling." This involves presenting the most expensive offer first, followed by lower-priced options. For instance, if you have packages priced at $10,000, $7,000, and $4,000, start by explaining the $10,000 package in detail. Next, describe the $7,000 package, emphasizing it as your most valuable offer. Lastly, present the $4,000 package as a basic entry-level option.
Starting with the premium package works because people don’t like giving up features once they know they exist. By beginning with the most comprehensive offer, clients make a more informed decision about what they need and are willing to invest in. This approach makes the mid-tier option appear as a better deal, even if that was your target offer all along.
Shannon highlighted the importance of first impressions in anchoring. Similar to trying on the first wedding dress, the initial offer sets the benchmark for all subsequent comparisons. Once a client mentally commits to the first offer, it is easier to navigate them through higher or lower tiers without losing the deal. Starting with the premium package ensures that the best first impression is made, allowing other options to be seen as scaled-down alternatives.
Upselling isn’t just for new clients; it's crucial for increasing the lifetime value of existing clients. Nikki encourages subtly planting seeds during interactions. If a client mentions a struggle that your upgraded package covers, instead of diving into a sales pitch, say something like, "I offer a service that could address that. Would you be interested in hearing more?" This approach piques interest without making clients feel pressured.
Shannon emphasized the mistake many entrepreneurs make by assuming their clients know about all their offerings. Often, clients focus solely on the service they are currently receiving. It’s essential to continuously remind them of your different services and solutions.
Nikki also suggested offering a taste of your premium services to existing clients. In her business, she provides a 15-minute “spotlight” coaching session for members of her group program. This interaction often leaves clients amazed at the value they received, making them more likely to invest in higher-tier services. Showing potential clients a glimpse of what they could have makes the upselling process more organic.
In conclusion, mastering the art of the upsell involves understanding price anchoring and creating curiosity. By adopting these strategies, you can increase initial sales and enhance the lifetime value of your customer base. Make it easy for clients to say "yes" to the best offer while ensuring undeniable value throughout their journey.
Nikki and Shannon's conversation offers invaluable insights into sales strategies that can help any entrepreneur refine their approach. Whether you’re new to upselling or looking to improve your techniques, these methods provide a solid foundation for achieving your business goals.
CEO of Sales Maven, Nikki Rausch has the unique ability to transform the misunderstood
process of “selling”.
With 25+ years of selling experience, entrepreneurs and small business owners now hire Nikki
to show them how to sell successfully and authentically. Nikki has written 3 books, all available on Amazon. And she has a podcast called Sales Maven, which you can find on your favorite podcast platform.
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Free E-book - https://yoursalesmaven.com/keep
What you'll hear in this episode:
04:01 Selling approach: start low or go high.
07:47 Buyers often choose the first convenient option.
10:12 Increase client lifetime value by creating curiosity.
14:45 Strategically revealing value to attract clients effectively.
18:52 Bundle of resources to start and clean up.
If you like this episode, check out:
How to Integrate Business Development Into Habits
Investing in Businesses - What You Need to Know
Want to learn more so you can earn more?
Transform your small business journey – download the Small Business $tarter Kit here.
Visit keepwhatyouearncfo.com to work with Shannon and her team
Watch this episode and more here: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ
Connect with Shannon on IG: https://www.instagram.com/shannonkweinstein/
The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
