Upselling: A useful tool in the hospitality industry

Upselling, also known as suggestive selling, is an ideal tool in the hospitality industry, as it not only gives staff the opportunity to create larger sales, but it can also be used to create greater customer satisfaction.

 
Yes, many times, the word “upselling” can leave a bitter taste in your mouth due to sales people nagging and nagging you to buy certain products. I believe that those sales people just haven’t had the right training – especially when it comes to the hospitality and tourism industry. In our industry, it’s all about the customer experience and customers definitely don’t want to be bombarded with sales pitches. Still, they do expect staff to tell them a little more about services offered, the current specials or things that they might be interested in.

 
Upselling, when used correctly, gives you the opportunity to get closer to your customer. To get to know them better.

 
Interestingly enough, we tend to use the word upselling incorrectly sometimes. Let me explain:

 
If a guest buys a room for R1200 per night and the reservationist offers the guest a better room with a view and an en suite bathroom at R1500 per night, that’s upselling. Cross-selling, on the other hand, is when you sell products that are different, but related, to the product that has already been bought. An example: If I buy a room at R1200 per night, the reservationist offers me the option of adding a spa treatment at the spa next door at R600. With upselling, the price of the product being bought is increased. With cross-selling extra items are added to the original product to increase the sale.

 
Keep in mind that it’s not a race, but rather a route to follow to help the customer get more value from your business, eventually creating more loyal customers who are sure to return time and again.

 
Groovehq.com mentions a few reasons why upselling and cross-selling are so positive:
1. When done right, it builds deeper relationships with customers.
2. It’s easier than selling to new customers and helps you grow.
3. Upselling increases customer lifetime value.

 
Teach your employees how to use upselling and cross-selling effectively by attending Travelling Mystery Guest’s upcoming workshop on this topic on 4 July 2015 (combined with 3 July 2015 workshop on communication) or 8 July 2015. For more information, contact Renate on 082 336 1562 or enquire@travellingmystery.co.za.

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