Up-selling – is an exclusive rental sales technique, where the seller motivates the customer to buy additional expensive items as an offer to make a more profitable sale on their rental sales. In simple words, upselling is persuading the customer to upgrade their product or buy a more expensive version of it.
- For example – If you’re going to buy a car from the dealership or have you ever visited the car dealership. They will give you an add-on offer for the car as an additional car wash at a high price as a brand new car washer.
The above mentioned might not be applicable for all the customers but it will be accepted by a few potential customers. if you didn’t invest in the upselling technique in your rental business, then it will be tougher to gain good revenue in your rental management system. So it is good to find the potential customer and invest in upselling on their rental option.
At the same time, the upselling not only increases the AOV(Average order value) it also increases the customer’s lifetime gradually. If you’re interested in booking a room at 32$ for two persons but the up-selling will show the best rooms with an additional facility at 45$. This not only adds value to the customers but also increases the AOV of the rental business.
Cross-selling – It is also one of the exclusive rental sales techniques, where the seller uses to motivate the customer to buy an addition to that of the existing customer. Alike up-selling this will also be applicable for the few potential customers but it will not offer high priceable items it will allow them to extend their product or service they already have.
- For example – If you’re going to buy a car from the dealership or have you ever visited the car dealership. They will give you an add-on offer for the car as an additional car service offer for the extension of the current car service.
The above-mentioned example will not be applicable to all the customers. But it is also needed by other customers, to keep their product secure. The cross-selling will increase your customer’s relationship and make them buy again the offer to extend their service with your rental business.
In simple words, if you’re renting a room and they offer you the additional coupon for the next day’s stay of 45% discount on booking. Cross-selling will extend its service with the service provider. it’s important to understand the difference between upselling vs cross-selling. Both are used to boost sales revenue, but they work slightly differently.
What is Up-Selling and Cross-Selling in Rental Business?
Benefits of upselling and cross-selling
Both the cross-selling and the up-selling will boost your small or big rental service business gradually to gain high revenue. Here, let me tell you the benefits of both the cross-selling and the up-selling in your rental business as listed below
- By boosting your customer’s lifetime value (CLV) – A customer’s lifetime is more important in a rental business. The lifetime of the customer’s analysis shows your rental business value, cross-selling helps to increase your customer’s lifetime easily. There’s no limit on how much the customer will rent from you or how many times.
- Customer satisfaction – Every rental business owner wants their customers to be happy with their service, right? Of course. By offering them related products, cross-selling enhance their experience. It also shows what they want next and will increase your customer’s relationship with your rental service.
- Retaining the customers – Once you make your customers happy, they will stick to your rental service around longer. If you keep hitting it out of the customers with your rental offers and discount recommendations, then you will gain more customer loyalty towards your rental business. This keeps the customer to rent from you again and again.
- Best reviews – By offering rental guests extra service with offers and discounts on the service, all the customers will recommend your service to others instantly and this way your business wings are expanded and provides greater experience to the customers.
- The easier way to attract existing customers – In up-selling, you can easily rent the best high-end offers to the existing potential customers quicker than the new customers. Once the existing customers are happy with your service, you can easily gain new customers by the existing customer’s review and their satisfaction level.
- Worthy service offers – Providing a luxury service with a worthy offer can be done by the up-selling. Your customers will be benefited from such offers in your rental business with the help of up-sell. As I mentioned, not everyone will prefer the high-end offers but with the best management software system, you can easily reach your potential customers who are ready to buy.
Most travelers are likely to write positive feedback if they had an opportunity to build a personal relationship with the host. Sometimes most of the properties struggle to get reviews as they are lacking the personal connection.
When to implement Up-sell and cross-selling
By now, you might have got to know about the basis of up-selling and crossing along with the difference and benefits of it. Let me tell you about when it makes sense to use upsells and cross-sells on your rental business. Which strategy you choose to implement will largely depend on what types of products or the service you’re offering.
If you’re running a rental business with an inventory management system, then you can use both techniques effectively with your software. You should make sure that your software up-selling is giving the best offer among other service providers. Besides, here let me tell you the two main characteristics your application must track
- Your application software is targeting the same types of customers, at different price points,
- Your application offers related base features at the correct price, with different features.
Cross-selling, on the other hand of your application software, should be a lot more flexible. You can show your visitors any of your other rental services or offers while they’re browsing one in particular. However, the best way to implement cross-selling is to focus on rent that is somewhat connected to what customers are already looking at.
Here, let me tell you how our software solution meets all these above mentioned with the lastest well-developed application to manage your rental software. Keep reading to know more about SpotnStay and how it helps to build a relationship between the host and the customer.
How SpotnStay software is used to increase your customer happiness and revenue
SpotnStay is a modern software solution that helps to manage all your rental business processes in one dashboard. Our software allows you to increase your customer’s happiness and revenue within a short period of time. You can easily manage your up and cross-selling in one dashboard.
By using our software you can easily be benefited from the potential customers and it will list the offers according to the customers by their previous rental history. Since our software reduces most of your mandatory work this will reduce the error and will permit you enough time to interact with your customers.
- Automate booking offers – Once the guest stays in your hotel for a certain (booked) time and leaves at the right time but to make them extend their night or a day. The automated booking offers for the next day with discounts and freebies, etc will be shown. It will make them extend their stay in your hotel.
- In-built Chatbox – Mail will always go to the spam folder so it’s better to send them a message in the app. By sending them monthly or on interval days once, they will get irritated so it can be sent for special occasions and vacation times. A build-in notification or a chat tool will notify them of the offers on the vacation seasons or potential customers.
- Automate Up and cross-selling – To create a powerful connection between you and your customers our software is built with both up and cross-selling systems. Up-selling will make your bookings more profitable and cross-selling will offer complementary products to the targeted customers easily.
Doing this mandatory will lead to many errors. Our software will reduce it gradually with automated offers and discounts. Once they booked their service the offers will be shown according to their previous selection or if they are new customers then the offer will be shown according to the customer.
Up-selling and cross-selling are valuable skills for every rental business to provide the best customer service because they can help you achieve your number one goal: make your customers happier and increase your revenue successfully. Still, why are you waiting? Contact us today at [email protected] or by filling the below form, we will reach you soon.