Aside from the fundamental need to deliver good service (and the multitude of benefits this can bring), there also exists a specific opportunity for brands to combine the provision of good service with the objective of increasing profits (through cross and up-selling), by harnessing the potential which exists within specific instances of customer satisfaction.
Experience clearly shows that the effectiveness of cross and up-selling activity is dependent upon four key factors. The first and perhaps most obvious is the level of customer satisfaction present; put simply, a happy customer is one that is likely to make further purchases in the future.
The relevance of the product being offered is also important. Propensity to purchase is hugely reliant on the product being something the consumer may actually want or need.
The legitimacy of the approach, in the mind of the consumer, must also be carefully considered. Crucially, if the act of cross or up-selling can be linked to an event such as a previous purchase, anniversary of purchase or date of renewal (for insurance for example), it is far more likely to be viewed as a genuine advance instead of an illegitimate and unwelcome one.
Finally consider the nature of the approach and the ability by the brand, again in the consumers mind, to establish their needs, position the offer to meet these needs, and ultimately close the sale.
By building on this experience brands can begin to innovate in the way they cross and up-sell, specifically by capitalising on customer satisfaction as a catalyst to making a sale. A customers satisfaction level will peak after theyve made a purchase or equally when they have enjoyed a positive experience with the brand. Using this event as a means of pinpointing when an instance of heightened satisfaction occurs, the brand can instigate a process of sales through satisfaction.
Following an event, the brand can interact with the customer with the dual aims of gauging their level of their satisfaction, while exploring other opportunities for the deepening the relationship. This can then be the starting point for a conversation, which may eventually lead to the opportunity to cross or up-sell, or which equally may instigate other improvements and refinements in the relationship between brand and customer, and the service being delivered. The success of this approach, and specifically in cross and up-sell activity, can be heightened if the brand uses the process of understanding why the customer is satisfied, and applies this insight to the subsequent sales process. By capitalising on the customers goodwill towards the brand, using communication made timely and relevant based on the insight acquired by soliciting the customers response to the service they have received, can deliver a dramatic improvement on sales activity.
We have used this approach with a financial services brand, as part of its ongoing current account on-boarding programme, aimed at customers who have switched their account. Feedback on their experience of the brand during this initial account activation period was solicited; using a combination of methods over 90% of customers provided a response. The resulting insight that was generated was then used to inform follow up activity; in this instance leads represent appointments made in the brand branch network, where they are converted into further account openings and other product sales.
This approach can deliver a brand significant customer insight for both short and long term use, but also acts to reinforce the brand and its values in the eyes of the customer. Customer advocacy can also be stimulated and therefore long term loyalty improved, and for instances of less than excellent service, the brand can be seen to be actively engaging issues directly with its customers.
Successful cross and up-selling is intrinsically linked to the both the provision of customer service, and the ability to use resulting customer satisfaction to instigate a relevant and welcome approach. It should be considered and employed carefully; sales through satisfaction offers huge potential, not just in generating immediate sales, but in invigorating relationships with customers by tuning in service delivery to cementing their loyalty and value for years to come.
By Chris Hancock, GasboxDMG md
|