Customer retention can save businesses money. According to Harvard Business Review, it is estimated that acquiring new customers can cost companies anywhere from 5-25 times more than retaining existing customers. If businesses are lax with their cross-selling and upselling strategies, then they are losing money and big opportunities.
There is no better cross-selling and upselling strategy than one that is based on data-driven decision-making. Location intelligence can ensure that you know what your customers will respond best to and help you stay ahead of your competition.
Identify Opportunities for Upselling
The key to a successful business lies in truly understanding your customers. This means knowing their path to purchase when they shop with you. In order to have the best cross-sell and upsell strategy, understanding the customer journey is crucial.
The customer journey can be mapped out with consumer foot traffic data. Do you know how responsive your audience is to a specific product release or campaign? With location-based insights, you’ll be able to understand which product campaigns drove customers into your stores which in turn provides you with an understanding of which products and services resonate with your customers the most. Based on this information, your sales team could upsell a premium version of a product or service to those customers.
A common example of this is an airline offering travelers seat upgrades. If this airline has extra seats, they might decide to offer their loyal customers a chance to upgrade their seat to get the perks of being first-class.
Know Customer Preferences for Cross-selling Purposes
Consumer foot traffic data can also help you determine exactly what your customers will respond best to when it comes to cross-selling.
For example, a popular beachwear retailer is known for your hats. The brand has been trying to cross-sell sandals to customers, but with limited success. By real-world data, the retailer is able to determine that their customers haven’t been jumping on this opportunity because they are more interested in women’s clothing than shoes. After visiting the brand’s retail stores, they go directly to the women’s clothing retailer across the street. Based on the results of this analysis, the brand decides to sell custom beach dresses and boho pants with their hats instead of sandals.
More than Just Cross-selling and Upselling
Cross-selling and upselling isn’t just about the extra revenue. These strategies can also improve your customer experience. The more you know about your customers, the better your offers can be. By improving the customer experience, you can show customers that you listen and understand them. A great customer experience will keep them coming back time and again.
Insights from location intelligence can improve your overall business strategy. With competitive intelligence, you’re able to get insights into what your competitors are doing. In this way, you are able to act on your customers’ preferences, and they are less likely to go to your competitor.
For more information on how location intelligence can improve your sales strategies, contact us to speak with an expert today.