Are you missing these windows of opportunity?
Unless your business is one of those rare ‘one product’ companies, the idea of cross-selling should grab your attention. It does not take a lot of common sense or thought to see that an existing customer is far easier to identify, engage with, and sell to than a brand new customer. Yet, most businesses put far more sales and marketing resource into finding new clients than they do in cultivating the relationships and spending potential they already have with existing ones. Successful businesses, on the other hand, are seriously clued up to cross-selling strategies.
Take Amazon as an example…
Recently I was at a conference where an idea called The Magic Matrix was presented. I have been doing something like this in my business for many years, but liked the format of this version so I thought I would share it with you here.
This strategy follows the Amazon-style way of systematically educating and informing its customers about all the other items it sells. Other customers that purchased ‘product x’ also purchased ‘product y’ and so on…
You can create your own Magic Matrix like this:
First you need to create a list of every product or service that you can sell. To do this, get together all of the heads of service or the person in charge of each department or product line that your business sells. You need to speak to everyone, because otherwise you might miss something important – it is rare for one person to know everything.
Next you list every current customer that you have (you can do a similar exercise with old or lapsed customers separately). Put these customers into a chart/matrix with the products and services across the top: then go along the line and fill in a box for each customer that buys a particular product or service. Any boxes that are not filled in become your target sales.
Told and sold = closing the windows of opportunity!
You then need to share this information with your customer-facing and sales staff and introduce them to the ‘tell’ and ‘sell’ system. Every time someone from your company speaks to a customer, they should look along the chart to find an empty box or two, and make sure they tell the customer about that product. (I will not cover sales technique or the subtleties of introduction here – but obviously a level of skill is required.)
Whenever a customer has been ‘told’ about a product a diagonal line can be drawn through the box and half of it is filled in. That is where the real work starts, however, because the box cannot be completed until the customer starts to buy. The power of this system is that it shines real light and clarity onto the windows of opportunity (the quick easier sells) that exist in pretty much every business.
Bigger windows to come…
If you want to take this system one step further you can then look at moving each customer over to a subscription version of the purchasing arrangement for each item they buy. In business terms this adds an extra level of stability and predictability to your turnover; giving you a stronger platform from which to build for the future.
Get in touch if you would like some help creating your own Magic Matrix.