How would you like to crack the code of McDonald’s and Domino’s Pizza? How would you like to make 3x more profit with the same effort. How would you like to multiply your revenue beyond your wildest dreams in only a fraction of the time.
Well, that is exactly what I will share with you today.
How has McDonald’s been able to make 3x, sometimes 4x more money from a single customer compared to other fast food chains? What is it about the meals served at MacDonald’s that customers consistently spend more than expected at their locations?
My answer: NOTHING!
It is not the burgers that makes MacDonald’s special or the Pizza that makes Domino’s unique, but their systems, and this system will be unveiled to you today.
It is not rocket science that customers are the lifeblood of any business and businesses spend a huge chunk of funds and try new tactics to acquire them, either through marketing and/or sales.
A lot is said about tactics, strategies and ways to acquire new customers but what is always left aside is strategies to retain or maximize the profits of already converted customers. Yet, this is the most important.
This customer retention strategy or ‘milking’ is a concrete part of the McDonald's system.
Did you know that research has proven that acquiring a new customer can cost five (5) times more than retaining an existing customer.
This is the reason smart and strategic businesses and entrepreneurs understand that customers are far more likely to increase their purchase while already in “buying mode.”
These incremental gains can be key to generating profits for the business and creating a better user experience for the customer.
It is no news that acquiring a new customer usually comes with more work and costs. This is the major reason, digital entrepreneurs and business generally should include up-selling, cross-selling and down-selling to their business in order to increase their revenue.
Let me show you how it works:
You go to McDonald’s with the intentions of ordering ONLY a Big Mac and head out. Let’s assume the burger costs $3.57, because that is what you came in to buy, you might just go for it.
But when you are about to pay, you then realize that you can get the burger with fries and a bottle of Coke for $4.15.
Now, you are thinking to yourself, maybe adding fries and getting the coke with it is not a bad idea. The burger will taste better with the fries and I will be able to drink the coke to digest the food, all for just a couple cents more.
Even though you convinced yourself that adding the fries and coke is a good deal, what happened is – you’ve just been cross-sold.
This has been the secret ‘milking’ strategy of these big brands for decades. It is the reason you stepped into a store to buy furniture, but ended up getting a living room makeover. It is the reason you bought jeans trousers and also bought 3 shirts and a new shoe to ‘match’ the trousers.
Wouldn’t you like to replicate this system into your business?
Let me show you how to cross-sell to scale your revenue.
Firstly, what is cross-selling?
Cross-selling is another way of increasing your sales and profits by suggesting an additional related or complementary product to a customer.
The goal here is to make sure that the additional product or service being offered to your customer increases the value they get from your business or product.
Consider the time you went to the store to buy a brand-new phone. There is a chance you also bought a screen protector or phone-case, you were cross-sold without even knowing it.
Oftentimes, cross-selling points users to products they would have purchased anyways; by showing them the offer at the right time, businesses are able to maximize profits and improve overall customer experience.
We experience cross-selling everyday, and it is so minute that more often than not, we have no idea it is happening. Here are some examples:
- A sales representative at an electronics retailer suggests that the customer purchasing a digital camera also buy a memory card
. • The cashier at a fast-food restaurant asks a customer, “Would you like fries with that?”
- The check-out form at an eCommerce website prompts the customer to add a popular related product or a required accessory not included in the product being purchased.
- A clothing retailer displays a complete outfit so the shopper sees how pieces fit together and buys all the pieces instead of just one.
So, how can you replicate this in your business?
The first thing you must take into account is your product/service and how each one correlates and the eBay way they can complement each other. For example, a graphics/web designer can cross-sell a website development to a client looking for a logo design.
Why would this work? Because a person looking for a logo is in the beginning phase of branding and will most possibly need a website.
Some other things to keep in mind are:
- GET TO KNOW YOUR CUSTOMERS
You may already know about buyer personas of people who may be interested in your products and services, but it's important to get to know your audience once they have already bought your product, too. Use demographic and psychographic information about your customers, along with customer feedback, to create personas for your customers and understand their goals and their challenges in order to identify the products you could cross-sell them that are most useful to them.
- THINK ABOUT THE PROBLEM AND PROFFER THE SOLUTION
Part of knowing your customers as stated above is also knowing the problems they face and how your product or service is the solution to those problems. Now, you have to demonstrate how the additional products you are cross-selling work with the product being purchased.
- CREATE A BUNDLE PACKAGE
Bundle related products so the customer does not need to look for necessary components or accessories that complements the main purchase. Try packaging items and products that naturally go well together, such as digital camera, memory card and camera case, to maximize your profits and ensure the customer is aware he needs all three items for proper use of the initial purchase.