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| This photograph is in the public domain. |
By Jim Hingst
This article appears in the April 2017 issue of Sign Builder Illustrated.
I
cannot think of another business with so many cross selling opportunities as
sign makers have. If you are unfamiliar with the term cross selling, all it
means is selling a current customer, such as a truck graphics account, other
products and services, such as posters, window graphics and window displays,
wall graphics, hanging signage, tradeshow graphics, banners and, of course,
signs.
You
would think that cross selling would be a fairly obvious sales strategy,
wouldn’t you? In fact, the embarrassing truth is that many sign shops and screen printers ignore selling
additional products and services to their current customers. Instead of
harvesting the low hanging fruit, many sales people chase after the Holy Grail
in hopes of making the big sale.
One
executive for a very large truck graphics printer expressed his frustration
complaining that his sales people would drive 50 miles to pitch a prospective
truck decal account but wouldn’t walk 50 feet down the hall of an existing
fleet graphics customer to sell them graphics for their stores.
Cross
selling is more important than just increasing revenues. Though, that’s not a
bad reason to do it. It is equally important because it gives you an
opportunity to build your value to a customer thereby strengthening the
business relationship. A strong bond serves as barrier from competitive
threats. What’s more, servicing one account is often more efficient that
servicing several businesses.
What is the Difference Between Cross Selling and Up Selling?
Many
people confuse cross selling with up selling. Both are great techniques for
increase your revenues, but the sales tactics are decidedly different. With
cross selling you are selling additional products and services to an existing
account. Up selling is a sales technique in which you sell the prospect a higher
end version of they intend to buy.
Butch“Superfrog” Anton is a master of the "Up Selling" technique. Here’s how this
sales tactic works and can pay off for you. Whenever a customer asks Butch to
make a simple black and white sign, he shows him alternatives. These other
options could involve printing or drop shadows or different materials. Each option may cost a little more but the
value added benefit is greater too.
While
the customer may have initially expected to spend only $25 dollars, more often
than not he walks out of Butch’s store with either a $50 or $75 sign. What’s
more, the customer is happy about it because he walks away with a better
looking sign. Butch is happy too, not just because his revenues increase, but
because he now has a customer who is likely to be a repeat customer. That’s a
true win-win!
How do You Identify Cross Selling Opportunities
In
cross selling, identifying additional opportunities will take a little extra
thought and effort. But it’s not that
hard. Here are a few suggestions on how to go about it:
If
the account has retail stores, visit a location and conduct an informal survey.
Look at the window treatments. What improvements could you suggest? How would
these suggestions benefit the customer? Benefits that come to mind are
attracting more attention and building more store traffic.
In
conducting a store survey, pay attention to the lighting, paint colors in
addition to the cleanliness of the store and how products are displayed. Fabric
banners and wall graphics are a cost effective way to remodel the appearance of
store interiors. An attractive store environment enhances the shopping
experience. What’s more, within the first few minutes after entering a store
location, shoppers make judgments about the retailer and the quality of the
merchandise based on store graphics and lighting. The first impressions that
are generated are not only lasting impressions but also determine whether the
shopper stays or leaves the store.
If
you have customers, who are manufacturers, you should inquire about needs for
interior signage and graphics. On the
shop floor, aisle signage helps employees quickly find raw material and
finished goods for use in production or for shipping to customers. Factories also
have a number of needs for interior signage promoting shop safety programs.
When companies attain safety or sales goals, they are also great candidates for
banners to announce their achievements to their employees.
Equipment
manufacturers usually require a variety of safety labels. I once uncovered an
opportunity from down the street from our factory that generated $125,000
annually in low cost of sales business. For more than a year, I had talked to
this company about truck graphics before it dawned on me to explore other
opportunities.
When
I worked for RTape, it amazed me that sign companies that we used for exterior
signage, never once asked us about our needs for tradeshow posters and banners.
Compared to the lifetime cost of our building sign, the cost of all of the
other graphics over the same period was far greater.
What is the Best Strategy for Selling Larger Businesses
Cross
selling to a small business is relatively easy, because the business owner or
manager often controls all of the purchasing decisions. Selling large accounts
is more complex and challenging because several buyers are often involved. But
it is certainly easier than selling a total stranger.
Here’s
a sales strategy for these big accounts. Ask for help. Start by asking your
current contact to introduce you to the other buyers. In the parlance of what
is known as strategic selling, your current contact is generally referred to as
the sponsor. He can point you in the right direction, identifying the key
influencers within the account as well as giving you good advice in dealing
with the other personalities within their organization.
Once
the introductions are made, the real work begins. Whether you are conducting a
site survey or conducting a sales discussion, your primary goal should be to
identify needs. For most people this can be the most challenging part of
selling because it requires that you carry on a substantive business
conversation with your prospect.
How Better Questions Lead to Better Answers
One
of the best ways to initiate a sales conversation is to ask questions. I know
one very successful salesman that prepared his questions well in advance of his
sales meeting. Many might find this approach a bit stilted, but it worked for
this person. I believed that it this technique worked because his questioning
was comprehensive and it saved time. By the time the salesman was finished, he
had a thorough understanding of the customer’s goals and his problems.
Discovering
a customer’s needs is vital to making a sale, because if there is no need,
there is no opportunity for a sale. Once
you determine the problems, then you can propose a solution.
The
needs analysis/problem solving sales approach not only is critical in
uncovering opportunities, but it defines you as a valued business consultant
versus a peddler.
What is the Best Way to Build Rapport with a Prospect
In
Dale Carnegie’s book, How to Win Friendsand Influence People, he suggests that one of the quickest ways to start a
relationship is to talk about what the other person wants to talk about and let
him or her do most of the talking.
By
asking questions you can discover areas of common interest, which helps in
building a rapport with the prospect. In selling this is critical, because
people like doing business with people they like.
By
genuinely showing interest in a prospect’s business, he will feel more relaxed
in talking to you and sharing his company’s goals and challenges. Just as a doctor must diagnose a patient’s
disease before prescribing a cure, you must clearly understand the customer’s
needs before suggesting solutions.
In
this regard, remember the recommendation of Dr. Stephen Covey to “seek first to
understand before being understood”. At any account you have the potential to
sell many different types of signage and graphics. What can destroy your
rapport with a customer as well as scuttling your opportunities for additional
business is being more interested in making a sale than providing solutions.
Nobody likes a pushy salesman. But everyone respects a consultant.
Conclusion
The
most successful graphics sales people know that the best time to sell
additional products is immediately after the initial purchase. That’s because
the customer is in a buying mood.
Cross
selling can be especially effective when products are complementary. For
example, suggesting interior fabric banners, hanging signage, wall graphics or
floor graphics can complement the sales of a window graphics program. I have found that providing prospects with
case study examples of businesses that have purchased a number of related
products are effective in making add-on sales. Here’s where a pitch book of
photographs can provide essential supporting evidence for your claims.
As
you become more engaged in cross selling, you will not only experience an increase
in your revenues. More importantly, because cross selling is more efficient,
you will also improve your bottom line.
If
you are not already engaged in cross selling, it’s time for you to start
picking the low hanging fruit.
Good Luck Selling!
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About Jim Hingst: After fourteen years as Business Development Manager at RTape, Jim Hingst retired. He was involved in many facets of the company’s business, including marketing, sales, product development and technical service.
Hingst began his career 42 years ago in the graphic arts field creating and producing advertising and promotional materials for a large test equipment manufacturer. Working for offset printers, large format screen printers, vinyl film manufacturers, and application tape companies, his experience included estimating, production planning, purchasing and production art, as well as sales and marketing. In his capacity as a salesman, Hingst was recognized with numerous sales achievement awards.
Drawing on his experience in production and as graphics installation subcontractor, Hingst provided the industry with practical advice, publishing more than 150 articles for publications, such as Signs Canada, SignCraft, Signs of the Times, Screen Printing, Sign and Digital Graphics and Sign Builder Illustrated. He also posted more than 400 stories on his blog (hingstssignpost.blogspot.com). In 2007 Hingst’s book, Vinyl Sign Techniques, was published. Vinyl Sign Techniques is available at sign supply distributors and at Amazon.
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