Up-sell versus Down-sell?

Query over good customer service

The business method of offering extra goods and services on top of what has already been sold, has become a common business practice. With a smile and please and thank you to “up-sell” can appear as good customer service, on top of increasing sales and profits. From asking a customer if they would like another coffee, when the customer has drank their last cup can appear like the staff care. To a bank offering related services to a customer for a loan for instance, shows the comprehensive financial packages available. To online business showing trending products that relate to that particular customer gives the illusion of personal service on-line.

Up-sell versus Down-sellThis of course is considered a valid business practice and becoming standard practice in many sectors. The benefits are obvious. However can up-selling go wrong? Is down-selling better for long term turnover, customer service and customer retention? It all depends on context. It can be better if a business does put people off extra works or goods or services. This can show that the business is honorable and not liable to rip-off the client. This can build trust and also develop good customer relationships.

 

The hard down-sell

For instance in car repairs it can be done that the offer of a cheaper alternative part, or even to talk the customer out off strictly unnecessary works is a valuable business tool. Where car repairs are notoriously unregulated, and up-selling or even promoting non-essential works can happen. To find a down-selling garage can be like gold dust and word spreads, both for good and bad business practice.

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