How Shopping Centres keep Customers engaged: Upselling
Last week we spoke of impulse buying and how it's done by large shopping centres.
This week, it's up-selling: another retail strategy to help increase profits for both small and large retailers.
Probably one of the most globally recognisable and long lived up-selling techniques has been from McDonalds where the customer is asked, "Would you like fries with that?"
Why has it been so effective?
It helps the customer to take advantage of more product and in doing that, has helped build both loyalty and revenue.
There's some definite positive points about up-selling:
The retailer already has the customer in place, so selling more product doesn't involve going out and finding a new market, which often can be difficult, especially in tough times.
Marketing can be efficient and growth can be faster.
Items like extended warranties or a larger or more premium level of a product: these can be offered to the same customer as an upsell or a cross sell.
In order to understand the customer, sellers are more engaged with their buyer because the need to know early in the buying process what product or service is going to suit best is most important.
Sharing information, asking the right questions, making suggestions is good practice.
Having to think of appropriate items or services not random offerings, connects retailer and shopper.
The customer feels understood and valued, the seller feels satisfied.
Upselling can actually keep a retailer's prices from rising, therefore making things more competitive.
Retailers often have 2 choices when they want to increase revenue: either raise their prices or upsell/cross sell.
By choosing the latter and offering the customer an added product or service, the former can be kept at bay.
Strategies like this do work.
They do benefit both buyer and seller and they do add value to a transaction.
A win win!