If you’re looking to grow your business, it’s important to focus on the right customers. Not all customers offer the same growth opportunities, so how do you decide which ones to focus on? This is where a cross-sell and upsell matrix can come in handy. In this sales training article, we take a look at how you can use a cross-sell and upsell matrix to identify growth opportunities for your business.
A cross-sell and upsell matrix, in its most basic form, is a simple spreadsheet that lists your customers along with the products and services that you offer. Here’s how to create a basic cross-sell and upsell matrix:
• List your customers down the left-hand side of your spreadsheet.
• List your products and services across the top of your spreadsheet.
• For each customer, fill in the following information:
Upsell: What they bought and if there is an opportunity for them to expand this or upgrade.
Cross-sell: Would any of your other offerings potentially help them to be better off?
Competitors: Are they using your competition for offerings that you can provide?
By completing this information, you can identify the most likely cross-selling and upselling opportunities and use this as the starting point for your customer engagement.
The key to success with this approach is to have a matrix in place and complete it regularly. This matrix should be updated after each customer discussion to qualify and disqualify opportunities. It’s also essential to keep the matrix simple and easy to use. Many cross-sell and upsell matrices can be complex, but a simple approach can be just as effective.
Once you have completed your matrix, it’s time to prioritise your customers. Not all customers will offer the same growth opportunities, so focus your time, energy and resources on those that are most likely to drive growth. One way to prioritise your customers is to rank them by the size of the potential opportunity. This will help you to focus on the customers that offer the most significant growth potential.
Another way to prioritise your customers is to analyse their buying behaviour. Are they repeat customers? Are they buying multiple products or services from you? Are they buying at a consistent frequency? These types of insights can help you identify the customers that are most valuable to your business and prioritise your engagement with them accordingly.
I liken the whole exercise to looking for your glasses while they are sitting on top of your head. Often, we are so outward focused that we completely forget what is right in front of us. Instead of focusing on what we have, we’re on the lookout for new opportunities elsewhere. There are, of course, benefits to both. We just need to learn to shift our focus accordingly, which is a lesson that comes through the consequences of our (in)actions or through proper sales training. Sometimes the opportunity cost never becomes apparent, until years later – kind of like the world being just a little out of focus and the solution has been sitting above your brow the entire time.
In conclusion, a cross-sell and upsell matrix is a simple yet effective tool for identifying growth opportunities for your business. By completing a matrix for each of your customers, you can identify the most likely cross-selling and upselling opportunities and use this as a starting point for your customer engagement. Remember to update your matrix after each customer discussion to keep it up-to-date and relevant. With a little effort, you can improve your account targeting and grow your potential business.
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