The Big Spend: How to Increase Your Wallet Share
Random Acts of Upsell - part two
03 May 2017
In last week’s post, we identified the 4 keys to creating an effective, structured upselling approach in your business. If you missed it – click here to read.
Once a lead has become a client (agreed to buy), the next area to target is increasing your wallet share. This is different to market share, and both are important to focus on.
Market share is the percentage of business in your industry that you are winning. Wallet share is percentage of client budget that is being allocated to you (as opposed to your competitors).
Increasing wallet share is one of the goals of upselling (explained in the previous post). In addition to the management and recording of average sale values, there are certain strategies we can focus on to increase ‘basket value’.
Perhaps the first and foremost is client education. If the client does not know what she wants, or isn’t aware that you can do something else, she will not buy it from you. For example: a Company Director comes to an audit firm to get an internal audit done. She’s already convinced about the need for the audit, and that sale is completed. But before signing all the contracts and rushing to do the sale, the Partner at the audit firm asks if she has Standard Operating Procedures (SOPs) in place, that would maximise the efficiency in the company. She knew about it, and was going to find someone to do it…any chance the audit firm has an idea? As it turns out, the firm can do it for her, and once the audit is completed and areas to improve identified, the audit firm can create SOPs with a priority on the areas of weakness. The client is relieved that this can be taken care of, and the firm increases the value of the sale by 50%.
By ensuring the client knows the range of offerings available, it becomes a lot easier to increase the basket size. Related to this is the second area of focus: making the effort. This is a common shortfall on the sales side, and has got to do more with ‘not doing’ as opposed to ‘can’t do’. I know what my product/service range is, and I know the typical needs of my client. All I need to do is ask my industry-equivalent of the famous question: “Would you like fries with that?” That small, innocent question (and the related ones around adding drink and/or upsizing) has brought McDonalds over $28 million per year!
One of the simplest ways to implement this in the team is to have scripts and/or checklists in place. When a salesperson has finalised a sale, and before leaving, he can have a script that prompts him to say: “Just before we wrap up; typically, the clients who purchase this also have a few other requirements. Can I just run them by you real quick, and if theres anything that you’ll need, we can get it sorted for you at the same time?” Most clients would be happy to spend another minute going over other potential needs they’d have – and many may even buy something extra. The 35% increase example I gave last week came from this strategy. As an example: I know the client will need to buy pet food if they’re buying a pet, and they’re going to get it from somewhere. What if I got them on a monthly retainer to have the right amount of the perfect food delivered to their doorstep each week?
Action point to implement: Do a pop quiz of your sales team. Do they know all the services/products you offer? Does your website list everything you can do? Does your office and/or store make it clear that there may be more things available than what is on display? In the next post, we’ll look at an overview of the psychology of pricing, and how that applies to your business.