How to frame an upsell strategy
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How to frame an upsell strategy

October 16, 2019


Hey everyone! Welcome to Uncomplicate
by Freshworks where we answer one question every day with one expert.
Today, I’ve Irit from CSM practice to answer a very interesting question
but before I introduce her and the topic, if you’re listening to this on
YouTube don’t forget to subscribe to our Channel.
Welcome to Uncomplicate Irit. Thank you, thanks for having me.
So today’s question is about something that a lot of
people have been debating about and a lot of people have
frameworks already but Irit is going to simplify it for us
in under three to five minutes on how to frame an upsell strategy. So Irit,
what have you got for us today? What dawns on me is how many
companies absolutely have the same methodology for selling to new customers
and to existing customers. We know for a fact from our experience it just doesn’t
work so you’re thinking about upsells and cross-sells and expansions selling
essentially, you want to start thinking about a different strategy than you
would from your existing customers and for your new customers and how do you really
continue on selling to existing customers. The one thing that the most
companies don’t leverage enough is the data we already have about them and when
you think about the data that we have about customers it really splits into
two parts there’s the quantitative data that we
can get from different systems and there’s the qualitative data. The place
and time to use those two areas of data is obviously in the customer journey is
after you’re done with a sales handoff, you’re done with the implementation and
probably after year one you’ve established a good solid case or product
deduction you can start talking about additional things that you can do. So I
want to expand a little bit and what does it mean by qualitative data?
Qualitative data is the stuff that customers tell us and there’s different people
with the organization that customers talk to and so instead of just honing in
on what the what customers say to the CSM we can actually have listening-posts
in customer success but then also in support, in your delivery or services
teams and yes if you have an account manager that works with your customers
to act another listening postal typically there would be at least four
groups where you can have those listening posts and on a regular basis
using technology ideally make sure that any kind of business needs flow back
into the person that’s supposed to own the expansion. I’m not gonna go into who that person is because I think that’s a big question in
itself. So let’s talk about quantitative data, we have different data
pieces about customers throughout the organization from support data we can
actually see trends for support ticket if we track our tickets properly and we
have the proper attributes per ticket we can see which customers we can upsell or
cross-sell training for example so upsell and cross-sell is not just about
features and functions and other products that we have, it could be
services that we can offer so we can have those kind of listening posts in
the data itself to look at in support data, we can look at usage data ,survey
data. I think that’s underutilized by a great deal. Besides NPS and
CSAT most companies don’t leverage surveys enough to really pick up on
additional business needs or even an interest in additional services, online
community discussions most companies don’t have a regular rigorous listening
to what’s being said in the community and then have prescriptive playbooks on
what to do when certain things are being said, we also have the sales data so a
lot of times we can tell that a customer might need additional products or
services if they have a combination of different products that they purchase or
a combination or lack of certain services that are typically being sold
in a mix of products or solutions. So, thinking ahead I think is one of the
things that I would recommend for companies as they
think about building a strategy for expansion selling there should be a
motion that happens on a more regular basis versus you know the reactive mode. A certain customer told me that they have a business need, I think that
there’s an opportunity here and if we go on the races, that’s a very reactive
model. I’m going to talk about a proactive, consistent model that flushes
out opportunities for expansion in a more consistent manner. So what would
that look like. So first of all we wanted to start tracking and analyzing three
different pieces of data about our customers –
the first one is consumption trends. Consumption trends would include what
have the purchase of the customer, consumption print trends would include
what have the customer purchased versus what are they currently using.
There’s also adoption trends which is how much are they using, what’s the
frequency of usage what are some of the things that we’re expecting them to use
but they’re not and then obviously that there’s the goals and the KPIs.
How much value is the customer actually getting, what other business needs do
they have and have they achieved their goals with us. So having all of that if
you think about it when you start designing campaigns for expansions
there’s really two types of data that could drive a campaign, there’s the ad hoc
campaign which almost everybody’s doing – we hear someone has a need all
right let’s go do it or we launch a new product or a new
service we’ll have an ad hoc campaign about that but I want to also talk about
recurring campaigns. So what I would recommend is companies start doing
quarterly campaigns or expansions and that would typically be driven by either
the consumption trends or the adoption trends so it would be very data-driven
versus ad hoc. So what we want to do is to translate customer information into
actionable insights yeah if I have to kind of you know put a framework kind of
a thing to whatever you have said it’s about CAG framework. So it’s about
you know how much are they consuming, how much are they adopting and then what is
the gap that you could do and collect data from qualitative and quantitative sources and
kind of be proactive and kind of upselling or you know telling them that
hey probably you might need this in the next quarter. So with that I think your
upsell strategy is not only going to be driven by emotion but also with power packed data from various sources. Exactly, so what you what want
to do when you’re designing the strategy is first and foremost take a look at
what are the all the customer needs that we know we can address and then say okay
based on the products and the services we offer
what is the bundle that we can offer a client that have that specific need then
look at the data and can see you could say all right how can I identify based
on the data that the customer have those needs like which customers currently are
most likely to have those business needs based on the data that we farm from all
those different data sources that I’ve mentioned then now you can compile a
list of customers and say once a quarter here’s a list and have the customer
success manager or the account manager actually call out to those particular
customers to actually validate that the need exists and start sharing and
creating awareness to those solutions. Often times, customers are not aware that
there’s a solution to the problem or that they’re aware of these you know
different things that you can do for them and so once you compile the list
you launch the campaign you see how it goes and then from there obviously you
can start adjusting and improving those campaigns but if you do it on a
quarterly basis you will get more expansions than if you just waited for
ad-hoc requests from customers or things that the CSM might bring up. So for those of you getting started with the upsell strategy,
remember the CAG framework that Irit just expanded on. It was a pleasure
hosting you for Uncomplicated Irit. Until I see you next time this is Praveen
signing off. Thank you for having me.

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