When your sales process includes guided cross-selling and upselling tools, you’re able to provide a better experience for customers while also increasing revenue.
For instance, imagine you’re browsing on Amazon for a fitness tracker. The site’s sales process includes automatic cross-selling and upselling tools that show you additional items under headings like “frequently bought together” and “customers who bought this item also bought.”
You might also see a side-by-side comparison of similar fitness trackers, based on price, features and customer reviews. You may end up spending more money, but you’re also more likely to choose the fitness tracker that best fits your needs.
This B2C strategy also applies to the B2B space. Unfortunately, many B2B sales reps aren’t as effective as Amazon when it comes to cross-selling and upselling across their entire product portfolio.
One reason comes down to the challenges of a managing a large product offer effectively and efficiently throughout the sales process. With a large number of products, it’s easy to overlook relevant accessories and options or offer a service option that’s not a good fit for a customer’s business problem. A second reason is an overly complex process that creates a disincentive for your sales team to pursue additional revenue.
For example, one U.S. company was using a call center to sell laptops, notebooks and related products in the B2B space. The sales reps at the call center were doing well, with an average order size of $1,200 and close rates of 40 percent. But they did poorly in terms of attaching services and accessories, such as extended warranties and other peripherals that customers would most likely purchase anyway.
As a result, the company was missing out on revenue. Equally serious, the customer experience wasn’t as strong as possible. Because reps weren’t including all of their relevant products and services, they weren’t offering comprehensive solutions to their customers’ business problems.
The cause of this problem was that pursuing cross-sell and upsell opportunities took too much time. The reps, quite rationally, didn’t want to spend an extra five minutes selling a mouse or keyboard in the hopes of increasing the order by another $20 to $30. They wanted to wrap up the sale and move on to the next $1,200 order.
To solve this problem, the company had to give sales reps access to the information they needed to cover the additional options at the speed of the conversation with the customer. To go back to the Amazon example, they needed a fast, targeted way to offer customers other products “frequently bought together.”
The company solved this problem by adopting a CPQ (configure, price, quote) solution with pricing guidance capabilities. Based on transactions data, the system provided a simple, streamlined way to show sales reps that customers who bought a certain base model were also willing to buy a particular extended warranty and specific option or accessory. And the system provided that information at the speed of conversation within their CPQ system. With this system in place, the company saw a dramatic increase in sales productivity, for two reasons:
1) CPQ tools make it easy to add value to an order: By providing consistent access to the entire portfolio and a guided sales process, these tools help ensure that reps provide comprehensive customer solutions.
2) Data-driven guidance boost confidence: Once sales reps understand previous transaction data was driving the recommendations, they feel far more confident about offering this option to the customer.
In the end, using CPQ tools is a great way to improve your sales productivity. Guided cross-selling and upselling help to increase the average deal size and improve the customer experience by enabling sales reps to create comprehensive offers that meet your customers’ requirements – all at the speed of business.