Cross-selling is an art, really.
If you've never cross-sold before, it's a straightforward process you've certainly encountered in your own life.
So, what is cross-selling and why is it important?
Have you ever been to McDonald's, ordered a burger and been asked, "Would you like a soda with that?" That's cross-selling.
How? You purchased another, different item that you might have overlooked.
Accountants can do this, too. For example, you can cross-sell your estate planning services if you offer tax planning to high-net-worth clients. (If you simply sold the person a different tax planning service or an add-on, this would be an upsell.)
Earning 30% more from the same clients who want and need these services is a no-brainer. You also don't need to spend a ton of money attracting new clients, so it's a scenario where you always win in the end.
You'll want to:
- Consider the services that you already offer. For example, if you offer CFO services, why not cross-sell them to clients who are achieving explosive growth this year who use your tax services?
- Consider the services you don't offer. Do you offer tax planning and would love to offer retirement planning alongside it? Why not offer these services?
I never want you to offer services you dislike to make more money from your clients. But if there are services that you really have an interest in, why not offer them? You can also work with a third party who can provide these additional services on your behalf.
Cross-selling is a "win" for your accounting firm because it generates more revenue and a "win" for your clients, who receive a more well-rounded service from you.
How to master cross-selling
To take advantage of all that cross-selling has to offer, you need to develop the right strategy. Follow the steps below to start your journey to mastering cross-selling.
The first step is to identify opportunities for cross-selling. Your clients are a great place to start. Why?
- You have a
60% to 70% chance of selling to an existing client. - It's far more expensive to acquire new clients than it is to retain current clients.
Analyze your clients and identify their potential needs. There are several strategies you can use to identify client needs:
- Client surveys. What better way to learn their needs than to ask them?
- Market research. Research demand, revenue potential and service growth figures to learn more about cross-selling opportunities.
- Client challenges. Do your clients face common challenges? For example, maybe a large percentage of your clients don't have a succession plan. This is a service that you can offer to meet their needs.
Once you've identified cross-selling opportunities, the next step is to develop a plan to start implementing these services.
You know which services you want to offer, but how do you implement them into your current offerings? The most important thing is to ensure your new services are as streamlined as your current ones.
At this stage, your goals should be to create a roadmap to introduce your new services and ensure they're tailored to meet your client-specific scenarios.
Consider:
- Your team's skill sets. Which areas do they excel in already? Identify which individuals can best assist with your new services.
- Skill gaps. You may need to train your team, or you may consider partnering with other professionals to bridge any skill gaps you identify.
- Marketing. How will you promote your new services to existing clients and new prospects?
- Quality assurance. You will need to develop processes and procedures for each new service to ensure your client's needs are met and that you provide a consistent experience.
With these strategies in mind, the next step is to implement effective communication techniques. Map out how you will present your new services to existing clients and keep an open line of communication to ensure your new offerings are a success.
Start slow and build over time
It's tempting to cross-sell everything, but it's also a recipe for disaster. You can, and should, start slow and build over time. For example:
- Cross-sell retirement planning with your tax planning services.
- See the reception from your clients.
- Wait a month or two to see what stress these additional services put on your firm.
If all goes well by cross-selling one or two services, consider expanding to more.
Cross-selling is one of the key ways that forward-thinking firms can boost their revenue and increase client satisfaction. If you start narrowing down the services that you already offer and others that fit neatly inside them, it will be much easier for you to begin selling these services to your clients who already need them.
