Cross-selling and upselling in a tire store is a smart way to bring additional revenue to your business. Instead of acquiring new customers as a means to increase your sales, you simply sell more to your existing customers.
You increase the share of a customer’s wallet by helping people in your store see the value in adding on to their purchase, decide to buy supplementary products and services, and spend more money.
So, how do you start effectively cross-sell and upsell in a tire store?
Understand the customer benefits of add-on purchases.
Before you can market add-on purchases, you need to know how to highlight the benefits of upsells and cross-sells so customers can see their value.
An upsell or cross-sell is typically an accessory, supplementary product or service, or impulse purchase that a customer didn’t know they needed. They didn’t come to the store with the intention of buying the item, so it’s your job to show them why they need the offering and are missing out by not getting the add-on.
Upsells and cross-sells must be positioned so customers see how they:
- Provide additional features and benefits
- Offer bonus value or a discount
- Enhance the customer’s experience
- Increase the length of life of a product
- Improve the performance of the product or service
- Secure the purchase (i.e., warranties and service packages)
- Simplify the use of a product
- Upgrade the style or appearance of the product
- Improve the outcome of the service
- Provide peace-of-mind to the customer
Create smart upsell and cross-sell offerings.
Once you know how to approach cross-selling and upselling in a tire store, create a strategy that is most likely to increase your revenue.
- Promote offerings with high margins. The best upsell and cross-sell items have high margins which make the most money for your business. Make it a priority to promote items that provide the most profit for your business.
- Identify complementary products and service. Look through your list of offerings and identify items that fit together and can provide one or more of the upsell and cross-sell benefits listed above.
- Develop packages and bundles. Once you find offerings that fit together, create bundles that lump the products together. Package the products and services so customers can clearly see the value of the additional items and cost savings.
- Remember the “rule of 25.” When cross-selling and upselling in a tire store — don’t forget that many customers shop with a budget in mind. So, don’t try to oversell them on expensive things they won’t buy, and stick to the “rule of 25.” Keep the cost of your add-ons to less than 25% of the original purchase.
Promote with the right in-store platforms.
Once you create a strategy for cross-selling and upselling in a tire store, it is time to share the message with your customers.
The best thing about promoting upsells and cross-sells is that you are marketing these items to an extremely engaged and interested audience.
You are marketing to customers who are in your store and have made a decision to do business with you. Now, all you have to do is show them what other value you have to offer. To capture customer attention and get shoppers to notice your value adds, use the following in-store tools.
Digital Menu Boards
For customers to decide to purchase an upsell or cross-sell, they have to know about. One of the best ways to bring these bonus items to their attention is through digital menu boards. Rather than listing your add-on services on a printed brochure or static wall-signed, use an engaging digital menu with animated graphics and videos to capture customer attention.
As one of our customers put it, “The Digital Menu Board easily pays for itself. In the first 3 weeks with the Digital Menu Board we sold 63 sets of windshield wipers. That broke a record.”
Another way to promote add-on offerings is by sharing ads with waiting customers. While customers wait for their service to be completed, use digital signage content to both entertain and subtly promote to them. Unlike regular cable content, digital signage allows you to customize your waiting room TV so you can mix entertaining content with video ads that promote your offerings (and only your promos will show as you can remove competitor ads).
One in five customers makes an unplanned purchase after seeing items featured on digital screens (Forrester).
Another way to initiate upsells and cross-sells doesn’t take place in the actual store. It happens over the phone. On-hold messaging and information relayed to customers who have called a tire store is a prime place to seed marketing messaging for upsells and cross-sells. Callers have already shown an interest in your business, and through hold messaging, you can capitalize on that interest by promoting add-on offerings.
Surveys show that 15% to 20% of phone callers make purchases based on information they heard on hold (Telemarketing Magazine).
Start cross-selling and upselling in a tire store today.
The marketing cost of selling more to a current customer is cheaper than the cost of acquiring a new customer. Yet, many businesses put a majority of their marketing dollars and resources into getting new customers to walk through the door.
But as you can see, you can increase revenues by simply implementing tools and strategies that promote to customers who are already in your store. You can cross-sell and upsell your way to more revenue.
So, why aren’t you leveraging these in-store marketing strategies? If it’s confusion about strategy that is holding you back, we’re here to help. Schedule a free consultation with a Spectrio representative to find out exactly how in-store platforms can leverage customer attention and increase the value of individual transactions in your tire store.