Quadrant 3 is all about encouraging existing customers to buy new products; generally upgrades, add-ons, and bundles. In general, the goal is to increase the number of products your customers use by about 15-20% per year. It may seem like a big ask, but keep in mind that, apart from Quadrant 2, these buyers have the lowest perceived risk — they’ve bought from you before and are going to be a lot more willing to buy from you again, studies show. Meanwhile, the chances of selling to a new prospect are between 5 and 20%; selling to an existing customer skyrockets to as much as 60-70%.
It’s crucial to invest in 3rd Quadrant prospects as it’s been proven to yield massive ROI. Bain & Company found that even a 5% increase in customer retention can lead to a 25-95% ROI. That’s a five-fold return. In the following sections, we’ll be looking at the strategies industry leaders are using to drive Quadrant 3 sales.
Customer Support Strategy
The reduced risk factor for Quadrant 3 prospects is dependent on their elevated trust in your company. Make sure your customer support strategy continually renews their trust in you and keeps you fresh in their minds.
This can be facilitated by having a scalable support infrastructure like chat and self-help portals that can offer painless and quick support to customers as they learn and use your products. You should also maintain good communication with customers in order to stay relevant and keep them educated on your products and updates as they come out.
Keeping close contact with customers also yields valuable insights into their buying behavior, which can help when it comes to pitching new products to them down the line. Knowing your customers well (including their needs and pain points) translates into knowing what to suggest to them to make their processes more efficient.
Customer Retention Strategies
Quadrant 3 sales rely on offers like bundles, packages, and deals that incentivize customers to buy more products from you. Make sure you figure out which products are best paired together and create promotions that offer added value to the original products your customers want to buy.
Automation can play an important role here, too. Use it to promote targeted marketing campaigns to customers based on what they’re already buying. For instance, if a customer is already buying product X, use marketing campaign A, and if they’re already using products X and Y, use campaign B.
Sales reps should also be invested in these strategies. Train them on which products are to be recommended together and on how to pitch an additional product without coming off as too sales-y; customers want to know that you’re on their side and trying to add value to their purchase rather than simply selling to them. Management can build a compensation plan around account penetration to encourage Sales reps to fine-tune their upselling capabilities.
Everything discussed previously has essentially been strategies that support upselling, which is the main goal in Quadrant 3. Upselling is when you recommend additional products that will complement those the customer is originally buying. HubSpot has outlined some key strategies that support upselling and will ultimately drive Quadrant 3 sales.
First, determine which product combos get the best results, both in sales and in customer satisfaction. You want to find combinations that make sense to customers when pitched (and can be backed up by proof, like with case studies or infographics) and that will ultimately add value to the customer’s original purchase. Tracking KPIs and asking for customer feedback can give some direction to these efforts and highlight which pairings you should be pushing. Oftentimes, segmenting customers by personas can help fine-tune which recommendations to provide and to whom.
Make sure your upselling strategy is based on integrity; you’re only hurting yourself if it’s done with anything less. Though upselling is generally very profitable, if customers sense they’re being taken advantage of or don’t find added value with the extra purchases you recommend, they’ll lose faith in your business and might churn. The products you upsell must be chosen with customer experience in mind, with the main goal of making them better, easier, or more efficient.
To support upselling, make sure to consistently introduce new products that can complement one another. Releasing a new product every 2-3 years is recommended in order to keep complementary items current and relevant.
Quadrant 3 is a great place to invest selling resources and if your customer retention and upselling strategies are well-thought-out, it can bring in considerable ROI. Driving sales in this Quadrant is all about investing in an excellent and helpful customer support strategy that will build trust between your customers and your brand. Some key customer retention strategies can also help boost your upselling capacities to reach your maximum Quadrant 3 selling potential.