When you think about the word “upsell”, you may think of sketchy salespeople trying to fill their pockets by selling you things you don’t need or want. Unfortunately, this does happen, but it’s not a true reflection of what it really means to upsell and cross-sell with your customers.
Although your primary focus should be to provide extraordinary patient care, it’s also important that you sell to become profitable and to keep your doors open. The majority of what you sell are prescription drugs, but you likely offer other products such as, over the counter medications, vitamins, and convenience merchandise. So, how do you sell these products and increase revenue without your customers feeling like you’re pushing products on them? The answer lies in upselling and cross-selling.
But first, what do cross-selling and upselling actually mean? To put it simply, cross-selling is selling a different product to an existing customer, while upselling is offering more of the same product or a more expensive version. When used properly, both of these techniques help you customize your customers’ shopping experience to their specific needs and potentially boost your revenue.
Increase Customer Satisfaction
This isn’t just a sales tactic; it’s a part of good customer service that can help you build deeper relationships with your customers by delivering more value. Let’s say when they come in to pick up their monthly vitamins, you tell them if they purchase two months at a time they get a discount. Or, if you want to cross-sell, you remind them that it’s flu season, and they can get their flu shot in your pharmacy without an appointment. You just exhibited that you are committed to your customers’ needs.
Increase Customer Retention
Retaining customers saves you money, especially when compared to the cost of attracting and earning new ones. When your customers feel like they are valuable, they will keep coming back. Each upsell or cross-sell opportunity can increase the lifetime value of your loyal customers, paying off for many years to come.
Increase Your Revenue
This one is obvious. Selling more merchandise, and more expensive merchandise, is more profitable. Whether purchasing a name brand product instead of generic or adding a pack of vitamins to their cold medicine purchase, when your customers makes a larger purchase, your revenue increases. And that’s good news for everyone!
If you are not offering additional products or services to your customers, you are leaving money on the table. Upsells and cross-sells are an easy win for growing your bottom line and accelerating your path to profit. As an independent pharmacy owner, you need to do what you can to stay competitive with the larger chain stores. There are lots of upselling techniques out there, and determining which ones to use will depend on your style and your customers’ needs.
To give you some fresh ideas, download our free eBook “3 Innovative Ways to Compete in the Pharmacy Market.”