If you’re like most business managers or sales team leaders, you’re probably devoting a significant portion of your time and capital to acquiring new leads. While it’s also important to have fresh leads coming in, upselling is really the answer. New leads shouldn’t be nurtured at the expense of your existing customers. You can cater to both without a 360-degree strategy turn. Let’s talk about generating revenue from existing customers to dramatically reduce your cost per conversion without spending a lot.
How much are you wasting on new leads?
Depending on your sales niche, the average cost to generate a single lead is between $50 and $400. Meanwhile, upselling can cost just a few dollars per customer. Upselling works because it offers captured customers more of what they already want, need, and know about. There’s no elevator pitch because the customer has already pressed the button to get off on your floor. Here’s why upselling is a more time-effective, cost-effective strategy compared to prioritizing new leads:
- Upselling keeps your company in the minds of existing customers. Even customers who aren’t necessarily ready for the upsell at this stage will understand that you’re “looking out for them” by offering new or enhanced products or services. You might say that upselling can be critical for engagement.
- Your team already knows how to handle existing customers. They can go in with confidence because there’s no need for stressful, embarrassing cold calls and pitches. If your team dreads cold calling, upselling can be a real morale boost!
- Upselling can boost your team’s conversion rates for a fraction of the effort.
- Upselling can provide a genuine benefit for your customer. Anyone who has already been converted may have needs that are slightly different compared to when they closed with you. The upsell may be exactly what your customer needs! That means that you’re enhancing customer experience, building trust and loyalty, and growing your numbers.
- Upselling removes the need to pour through inaccurate or outdated lead information that leaves your team running around in circles. Current customers come with accurate contact information and payment information that’s already on file.
Ultimately, upselling requires a much shorter and cheaper sales cycle compared to pursuing new customers. There’s also a higher conversion rate baked into the process. Most research shows that selling to a new customer brings a success rate somewhere between 3% and 20%. When pitching to existing customers, the success rates zips up to 50% to 70%.
How do you upsell to existing customers?
The one thing standing between your team and successful upselling is that you don’t have a process. Fortunately, AI can fix that. Pipes.ai has developed the sales industry’s leading automated upselling tool. Once you sign up, simply send us your list of existing customers. We’ll use our proprietary technology to apply a sequence that presents each customer with an upsell proposition. It’s fast, professional, and effective. We’ve already helped countless sales teams get more value out of their existing customers while spending next to nothing!
How to use AI to upsell your existing customers
Are you ready to boost your company’s average revenue per customer (ARPC)? Using advanced AI technology for upselling can help you do it without a big tech investment or financial hurdle. You don’t have to stop devoting time to new leads to earn more revenue from each customer. Try our AI to learn why Pipes.ai is the leader in leads and upsells across all sales sectors.
