Upselling a dirty word?
Most of us have a poor perception of anyone involved in sales. However, we must remember that we must sell to have a business.
When you talk to them about upselling at the till, our teams have the same mindset. They often have a mental barrier to getting guests to spend more than they intended when they walk through the door.
We are sure you know that there are three ways to increase revenue in our business:
· Gaining more customers.
· Getting them to visit more frequently.
· Getting them to spend more when they visit.
Getting people to spend more with you when they visit is a very clever tactic as it costs nothing in the marketing budget. Our business has a relatively lower average spend. Most people will buy two things: a drink and something to eat; encouraging them to buy an extra item seems simple. These additional items are often described as 'impulse products.' Selling a higher-priced alternative item or bundling together meal deals is also a great tactic.
Mindset
As business owners and leaders, we must make it easy and natural for our teams to upsell.
We can upsell in several ways, some passive and some active. We need to change our teams' mindsets so that they see an upselling opportunity as a way to delight guests or to make someone's day. We can also design our operations and displays to encourage our customers to buy another item they hadn't planned to or trade up for a more expensive/profitable item.
The most straightforward type of passive selling is making your display and descriptions look and sound irresistible. This works for indulgent or higher-calorie products as well as the healthiest.
Firstly, people buy with their eyes; if something looks tempting, you are halfway there. Abundant displays attract attention. On the other hand, the last slice of cake looks sad and suffers from what behavioural scientists call The Orphan Effect, where people assume that because it's the last one on the shelf, it has been rejected by everyone who came before them.
Giving your guests a wow moment when their drink or food arrives because of the presentation in the cup or on the plate is part of the joy of providing hospitality. It can also encourage others to order the same when they see it. We call these items the 'neck-snappingly Instagramable' items, and when they are delivered to another guest, everyone in the place turns their heads and grabs their phones!
Another overlooked passive method of upselling is using the right words in the menu description. A 'Freshly baked, chocolate fondant gateau' sounds more appealing, tastier and more expensive than a 'choc cake' even though they are the same. Sadly, few operators take the time to craft their product descriptions because they are not making the most of what they sell. When you talk to Independent coffee shops or cafe owners, they will speak to you about what they sell as higher quality, locally and ethically sourced, but don't take the time to add these important things into their product descriptions. Look out for this, and you will see it everywhere.
Using digital displays is a powerful way of getting your guests' attention and highlighting impulse lines and higher-priced items. They can be perfect for meal deals or multibuys. Meal deals, from McDonald's to Tesco, are so ubiquitous that guests look for them. They are a fantastic way of increasing your average spend per customer and, if done correctly, your bottom line.
Where you put your impulse items is critical; they must be visible before a transaction, i.e., before the till. If you look at the big chains, they cram chocolate bars, wafers, nuts, crisps, water, pretzels, and protein bars, to name a few, just before you pay. Even if you have already decided, you can be sorely tempted to pick up an extra treat while waiting in the queue; we've all done it!
We now move on to the more active ways of selling more to the guests standing in front of you. Offering a shot of syrup in coffee or whipped cream and marshmallows on hot chocolate as an upsell is pretty standard practice. Naming the bigger-sized drink 'Regular' rather than 'Large' will make it more natural to order.
Programming your EPOS with relevant upsell prompts when an item is purchased will make the upselling options part of your team's normal order process.
We know how annoying it is to be constantly asked, 'Do you want fries with that?' in a well-known burger place, and we think that this is part of the issue when you want to get your team to do some active selling because they think it's rude.
The trick with suggestive upselling is to try to understand the customer and then offer something they would like. An offer of a bacon and egg roll to someone in a gym kit is likely to be rejected with a weird look, whereas to a builder, it's almost a no-brainer: 'Go on then.' Look at your typical customer types or avatars and list certain products that would tempt them to help your team make an extra sale.
Offering a tasting can be a powerful way of getting people to trade up, as when your tastebuds are excited, you are more likely to buy!
Using simple phrases such as 'something to nibble?' ' a little treat?' after the customer has placed their order can often be the catalyst for them succumbing to the temptation of the delicious cake they were trying to resist. The most often asked and completely useless question asked at the point of sale is 'anything else?' as this prompts an automatic 'no thank you' from almost everyone.
The Pumpkin Spiced Latte is relaunched every year because limited editions and seasonal specials boost the average spend and make people feel good at the same time.
We all know that Social media can play an enormous role in driving sales. The sweet spot is when the online promotion of a product combines with in-site marketing; people arrive at your door excited to try a new or different product they have seen in their social feeds.
Retail opportunities There are some obvious things you can sell that you use in your place's day-to-day life: coffee beans, reusable cups, Tea, and syrups. If you use a local baker for your bread, why not also sell some of their products? If buying an artisan loaf in your area is difficult, then you have a solution at hand.
One watch out is to be careful to upsell products that are complementary, not cannibalistic. For example, don't sell a bottle smoothie at a 30% margin if you prepare your own and generate a 70% margin and charge a higher price.
A well-executed strategy of a combination of passive and active upselling will bring in extra revenue for next to no cost.