Cross-Selling – It’s About Connecting with Customers

By:Terence Traut

Cross-Selling – It’s About Connecting with Customers
By Terence Traut, Entelechy, Inc.

What do TiVo®, XM Radio®, and the Do-Not-Call List have in common? They represent the collective voice of the prospective saying, “leave me alone; do not annoy me with commercials and other direct solicitations for products and services.”

According to research we conducted in our white paper entitled, Effectively Using Cross-Selling and Up-Selling to Increase Revenue AND Customer Service (available free at http://unlockit.com/TS-HPCS.htm):

• Over 70% of Personal Video Recorder (PVR) users skip through television commercials (and Yankee Group estimates that fully half of US households will have this technology in four years! (1))

• Satellite radio has eight million customers and expected to double to over 19 million subscribers by 2007. (2)

• Over 100 million people have signed up for the Do-Not-Call list, with severe penalties to companies violating the law (in December, 2005, DIRECTV was slapped with a $5.3 MILLION penalty for Do Not Call violations).

• Return rates for the types of outbound marketing and advertising efforts listed above have fallen below 3%. (3)

Consumers are clear in their directive to us: stop the bombardment of irrelevant, ill-timed advertising.

It’s not that consumers have stopped consuming. On the contrary, they are buying; for example, consumers spent over $20 trillion dollars on household goods and services in 2003, four times what they spent in 1960 according to The Worldwatch Institute. (4)

As a result of the lackluster results of outbound marketing and the increasingly limited reach of traditional advertising, more and more companies are looking to optimize opportunities in inbound customer calls and use service reps to take advantage of ongoing contacts with customers to position additional products or services.

With 2.1 million customer service representatives in the US (5) handling billions of customer calls annually, inbound customer service calls provide a huge opportunity for cross-selling – if done successfully.

The Key is Connecting with the Customer

Consumers are willing to purchase additional products or services from customer service representatives. In a 2004 Forum Corporation survey of 1,624 world-wide respondents – averaging 43 years old and with an annual family income of $56,000 – it was found that:

• 88% of customers value service reps who suggest alternative products or services that better meet their needs.

• 73% are interested in learning about new products or services the company is promoting.

• 61% tend to ask service reps about these products or services.

• 42% said they purchased additional products or services “sometimes” or “frequently”. (6)

The Forum survey found that consumers are most likely to buy when the customer service rep:

• Focuses on the customer’s needs instead of pushing a product.

• Solves the customer’s problem first, before talking about additional products or services.

• Describes how the products or services will benefit the customer. (7)

Conversely, when a customer service representative didn’t seem to pay attention to customer needs (i.e., used a script, continued to sell after the customer said “no”, or pushed products that were not useful to the customer), customers were not only unlikely to buy, but became highly irritated. (8)

Cross-Selling Training

Most companies train their customer service representatives to ask questions to solve problems. Transitioning to sales is extending those existing skills, since selling is really nothing more than good problem-solving. At the same time, cross-selling skills can be unique and can be as foreign to customer service reps as another language.

In order to effectively cross-sell through the service channel, start with an assessment of current abilities and compare them to cross-selling competencies. When working with clients to increase sales through their service channel, we at Entelechy start with the following list of cross-selling competencies and customize where needed.

An employee skilled at cross-selling:

• Views cross-selling as an extension of customer service and a way to solve customer problems.

• While addressing the reason for the customer call, listens and identifies clues to additional customer needs.

• Successfully addresses the customer’s original reason for the call before discussing additional products or services.

• Uses checkbacks to ensure that issues have been addressed, messages understood, and actions agreed to appropriately throughout the call.

• Throughout the call, listens for clues that may identify the caller’s predisposition for cross-selling (both in terms of product/service need AND in terms of receptivity).

• Successfully transitions to cross-selling by asking questions to investigate and/or clarify additional customer needs identified during the call.

• Matches appropriate products/services to meet specific customer needs.

• Positions the customer benefits of these products/services in terms and tone that demonstrate helpfulness to the customer.

• Ends discussion of additional products/services if the customer objects.

• Recognizes buying signals.

• Closes the sale by asking for confirmation by the customer.

Training must provide demonstrations of these skills in action. Charlie Gargaly, customer service master trainer at Entelechy is adamant that the training show the skills being applied by THESE reps in THEIR environment: “Generic training doesn’t work here. Customer service reps need to see ‘one of their own’ successfully demonstrating the skills.” Gargaly recommends using video to capture vignettes of real reps demonstrating the specific skills; use the videos in training to demonstrate and discuss the skills. (For a list of customizable customer service modules from Entelechy, visit http://unlockit.com/TS-HPCS.htm.)

Conclusions

It’s all about connecting with the customer. If your customer service reps ask questions and position products in the mode of solving customer problems, they’ll make the customer feel taken care of and appreciated. When done right, cross-selling and upselling will do more than sell products; it can increase customer satisfaction and retention.

Download your free copy of Effectively Using Cross-Selling and Up-Selling to Increase Revenue AND Customer Service at http://unlockit.com/TS-HPCS.htm and increase the effectiveness of your cross selling efforts.

Endnotes

(1) “DVR/PVR Pave the Way to IPTV,” Telephony, Dec 12, 2005, Vol. 246 Issue 24, Special section p2-3.
(2) “Satellite Radio,” eMarketer, Nov 2005, http://www.emarketer.com/Report.aspx?radio_sat_jan06
(3) “The Elusive Prize Effective Cross Selling,” Insurance and Technology Sept. 2005 http://www.insurancetech.com/news/showArticle.jhtml?articleID=170704148
(4) “The State of the World: Consumption by the Numbers,” The Worldwatch Institute, 2004.
(5) Occupational Outlook Handbook, 2006-2007 edition, Customer Service Representatives, Bureau of Labor Statistics, U.S. Department of Labor, http://www.bls.gov/oco/ocos280.htm
(6) “How Customers View Cross-Selling,” The Forum Corporation, 2004.
(7) Ibid.
(8) Ibid.

Terence R. Traut is the president of Entelechy, Inc., a company that helps organizations unlock the potential of their people through customized training programs in the areas of sales, management, customer service, and training. Terence can be reached at 603-424-1237 or ttraut@unlockit.com.

Digg del.icio.us Blink Stumble Spurl Reddit Netscape Furl

Article Source: http://www.articles2k.com

Top Business Articles
1). A plus C Systems and Affirmative Insight, Inc. announced an exclusive partnership. By : Bartosz Lewandowicz Affirmative Insight Inc. provides information technology solutions in the areas of IT security, networking, service and support, e-business, web design, web hosting and software development. By partnering with A plus C Systems, Affirmative Insight, Inc. expands its offer with a comprehensive suite of software products – Uplook, Statlook and Anasil – tool kit for IT asset management and network monitoring.
2). 5 Ways To Protect Your Bond Portfolio From Rising Interest R By : David Twibell The Federal Reserve recently raised its target federal funds rate for the first time since March 2000. This could be just the tip of the iceberg, thou
3). The Thick Line Between Buddy And Boss By : Tim Knox Q: One of my key employees is giving me trouble. He has started showing up late for work and has developed a bad attitude in general. The rest of my employees are complaining since they are having to take up his slack. I've tried talking to him, but he doesn't seem to listen. To make matters worse, he has become one of my best friends since I hired him five years ago, so firing him is out of the question.
4). The Man Who Makes $1 Million in Affiliate Commissions By : David Kamau His success is phenomenal. Well, not many can claim to make $1 Million a year in affiliate marketing. And at only 27 years of age! His name is Jeremy Palmer. Until recently, he was virtually unknown in the marketing circles, simply because he preferred to make his money silently. Now this Jeremy guy has written an ebook about his affiliate marketing techniques.
5). Overcoming Obstacles By : Debbie Milam Discover how a young woman overcame serious life challenges through connecting with her inner spirit. My story begins 38 years ago in Queens
6). International Investment In Bulgaria Still Strong By : Tim Wright The strong growth in the Bulgarian economy is continuing and this is emphasised by the confidence in the market shown by companies such as GE for example. GE Commercial Finance Real Estate recently announced it will be acquiring a 50% stake of the Mall of Sofia. The Mall is an enormous trade, business and entertainment centre currently under construction in the heart of the capital city.
7). Lose Weight but don't skip breakfast By : J. Brian Keith Lose Weight but don't skip breakfast
8). Should we believe the experts? (Part III) By : Mike T. Davis Why do we use experts? To predict the future. Consider a patient who is asking a physician about the future effects of a certain drug, or the investor who is asking a stock analyst about the future prices of a certain stock, or the manager who is asking a human resource manager about the future performance of a certain candidate, or the brand manager who is asking a market researcher about the future sales of a certain new product.
9). 12 Ways To Outsell Your Competition! By : Larry Dotson The keys to outselling your competition is to compare your product to theirs. When you find the differences between products, use your fin
10). Female Golf Gifts - Golf Apparel By : J. Brian Keith Female Golf Gifts - Golf Apparel

New Business Articles
1). How Customer Call Centers Have Improved And Why They Are Crucial For Your Business By : Gregg Hall When it comes to call center support for customers, there are dual benefits seen for both the consumer and the company. There is a great need for the answering of questions or need for the necessary walkthrough in regards to a service or product that could occur at any hour of the day.
2). Xbox 360 Games: How To Get Them Incredibly Cheap By : Joaquin Reveron How to get the best xbox 360 games for the lowest prices in the market.
3). Investment in Education- Key for Software Outsourcing By : Mike Batta When it comes to software and IT outsourcing, education is a major component. Read how education in India plays a role in software outsourcing and IT outsourcing.
4). Formalizing Your Employment Agreements To Mitigate Exposure Risk By : Wade Anderson The Employment Agreement is an important document that sets out the terms and conditions agreed to between the employer and the employee. It implies that the employer shall gainfully employ the employee in a capacity as specified in the terms and conditions of the Employment Agreement.
5). How To Choose The Best Safety Boots To Protect Your Feet By : Gregg Hall There are over 100,000 work related foot injuries in the United States every year. These types of injuries are all too common and in many cases are the result if improper footwear.
6). How To Find Low Cost Items That You Can Resell For Profit By : Gregg Hall The key factor in the success or failure in a business that specializes in closeouts, liquidations, or selling products on eBay is finding items at good prices that you can make a profit on when you resell them. Contrary to popular belief it is when you buy the item that you make your profit as what you pay for something is what determines how much your end profit will eventually be.
7). Run An Employee Background Check on Potential Job Candidates By : Matthew Bass If you have even a passing interest in the topic of employee background check, then you should take a look at the following information. This enlightening article presents some of the latest news on the subject of employee background check.
8). Outsourcing - the Competition Killer By : Mike Batta If your company competes in the global economy and has not considered job outsourcing you may be in for a big suprise. Outsourcing jobs is necessary for competition.
9). Investing In Real Estate With No Money Down By : David Gass Gives strategies for investing in the real estate market without a down payment.
10). The News About Alternative Energy-Clean and Green By : Mike Batta You have probably seen many stories about alternative fuel and energy lately...this is why.