Rental Management: Up- and Cross selling to increase overall Rental Revenue!
Rental companies are always trying to increase their overall rental revenue. This can be done by increasing efficiency of the business model and in previous spotlight items I have explained how this can be achieved with a clear overview of the available rental fleet to optimise utilisation. Another way of increasing the rental revenue is by inventing new (additional) business models, such as selling additional services and/or products via upselling or cross-selling. Up-selling and cross-selling can be key in profit generation for rental sales representatives.
Cross-selling and up-selling are often confused with each other and used synonymously when, in fact, subtle differences between the two types of selling do exist. The definition of Upselling and Cross-selling:
Up-selling is the practice of encouraging customers to purchase a comparable higher-end product than the one in question, while cross-selling invites customers to buy related or complementary items. Though often used interchangeably, both offer distinct benefits and can be effective in tandem.
Upselling and cross-selling are mutually beneficial when done properly, providing maximum value to customers and increasing revenue without the recurring cost of many marketing channels
Offer upsells and cross-sells that make sense to the buyer!
Up and cross-selling only makes sense if the suggestion will match the buyer’s needs, otherwise you could even lose the entire sale! When you’re renting out a car for example, it doesn`t make sense to suggest a scaffolding tube as an additional rent. In order to assure your suggestions make sense it is important to analyse data and to find valid suggestions. Based upon historical sales data it is possible to see which products and services are often sold together. PowerBI is an interesting tool which can be used to help visualize this (PowerBI and Rental Management are also discussed in previous spotlight items).
Setting up up- and cross-selling in Dynamics Software Rental Management from HSO
On the Released product (variant) in Dynamics Software Rental Management from HSO it is possible to setup supplemental items, which will be used as the suggestions for up-/cross-selling.
Per product it is possible to determine a specific kit of supplemental items. This list can contain sales items, services and even other rental products. For each line in the Kit list it can also be determined if this is an optional or mandatory product. Also other setup can be determined like pricing and fixed/maximum quantities.
Use up and cross-selling in Dynamics Software Rental Management
When an item with supplemental items is added to a rental order, Rental Management will automatically show a pop-up that up/cross-selling options are available:
The list of supplemental items will be displayed and the sales representative can see all the options available.
Per line it is visible if the product suggestion is optional or mandatory. The potential options can be discussed with the customer and by simply selecting/de-selecting the items they can easily be added to the rental contract.
The up-/cross-selling process is really made easy with Dynamics Software Rental management, adding value both for your business and for the customer!
Contact HSO for more information about our expert Rental Management solutions.