An effective cross-selling strategy is one of the easiest and most profitable tactics a clinic can use. A direct conversation with a client costs nothing in terms of marketing spend and can be duplicated across multiple encounters.
Increasing the average value of a customer is simple and makes an immediate impact on the bottom line:
Clinic 1 has 200 clients per week
The average value of a customer at the clinic is $100 (total revenue divided by total customers)
Total revenue – $20,000 per week
A cross-selling strategy increases the average value by $20, taking the average value of a customer at the clinic to $120.
New weekly revenue – $30,000
An additional $20 average value is extremely achievable when you consider that some customers will spend an extra hundred dollars, and some will spend nothing.
Here are our top tips for increasing average customer value through cross-selling:
1.Have a System and Measure It
The most common reason that cross-selling and up-selling efforts fail is that they are poorly implemented and badly managed. Our teams don’t want to aggressively sell product or additional treatments to clients, they want to do what they do best – offer great service and a pleasant experience.
So, create your cross-selling system in such a way that it adds to the service offered and the experience a customer has. The system you create should be authentic to your business, but some successful examples are:
• A questionnaire conducted before the treatment commences
• Using a skin analyser regularly to review progress and treatments
• Monthly offers for products and treatments
• “Membership” offers, presented to loyal customers before treatment commences
With a structure in place and measurement of the system, you will also get an idea of what products and treatments are most appealing to existing clients.
If each of your team members spends 30 seconds before each treatment thinking about what else the client they are about to see may want based on their requirements, your cross-selling conversion rate will increase.
Combine this with some basic sales training and you’re onto a magic formula.
3. Share Information
Don’t let any product or treatment in your clinic become a “best-kept secret.” Sometimes, your best cross-selling tool is a poster, sticker or well-structured product display. All of these things are designed to not only encourage the client to purchase, but also to start conversations about other things they may wish to introduce to their regime.
Cross-selling should be an ongoing project for you and your team. Take the time to develop a system, measure it and make improvements based on the results and feedback. This minor change to your daily routine will make an extraordinary difference.