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upselling and increasing profits

How to use your POS software for successful upselling techniques?

2021/05/06

Upselling is challenging but it’s the objective of every restaurateur and the aim they are trying to get to when they hire certain people.

 

During the spread of Covid19, upselling became a need especially when restaurants have to deal with limited number of customers because of the imposed restrictions that respect social distancing requirements.

 

With social distancing imposed, employees may have less impact on customers’ choices and might not be able to suggest pairing items with their meals.

 

So are you still able to upsell at your restaurant especially when you are in need of each extra platter ordered?

 

Yes, indeed.

 

First what’s upselling?

 

Upselling is encouraging customers to spend more through getting items with higher profit margin.

While upselling is really confused with cross-selling (adding items or services or products to the additional item purchased or meal ordered), they both lead to higher income and therefore it's considered as a part of upselling,

 

Adding chicken to a salad, having coffee after your meal, or adding desserts are all ways to upsell.

 

Upselling is an excellent and effective technique to generate more income to your business.

 

Usually waiters are responsible for upselling by suggesting upsizing your meals, adding items to your plates like cheese or meat or suggesting a higher profit margin chicken platter than the one customers ordered.

 

Employees are usually trained to make upselling smooth so the customer doesn’t feel he is pressured by the server.

 

So, how does technology help you do the trick when it comes to upselling?

 

 

POS and redesigning your menu

 

It’s plain and simple.

 

Use your POS to redesign your menu the way you want your different meals to appear.

 

You’re sure want to highlight on the highest profit margin meals.

 

Take a look at your business reports. What are you most selling meals? What are your highest profit margin meals?

 

Once you identify your top selling or most profitable items, it’s time to create upselling suggestions for them.

 

Is it a steak main course? How about adding a salad or veggies or adding cheese on the baked potatoes that comes with it?

 

Is it a burger?

 

Double the patty for a small additional charge. Add cheese, bacon or upsize the meal for an extra charge.

 

The customer wants a beef burger but unsure about the one he wants? Highlight the highest gross profit contribution one identified in your reports, by placing it in the middle of your burger menu, top right or top left as “The Golden Triangle” rule of menu engineering suggests.

The golden triangle rule in menu engineering that suggests placement of platters

 

The golden triangle applies in printed and contactless menus while for the mobile online menus, restaurateurs should place their “star” items (highest profit contribution) at the beginning because users will easily get bored of scrolling down to see all the items.

 

Don’t forget to identify items with low profit margin as well from your POS reports because you need to find ways to increase their profitability through add-ons maybe.

 

It’s important to mention all the add-ons suggestions in the menu so the customer sees it.

 

Customer buying history

 

Tracking your customers’ purchasing history and identifying their preferences through your POS reports and information help you create upselling and cross-selling items that they would like in addition to enhancing your relation with them.

 

If a specific customer’s purchasing history shows that he likes cheese, it’s easier and less hectic to suggest added cheese on their salads, burgers, or fries.

 

If your business reports show a preference for a certain wine, suggest it to go with their main course.

 

 

Monitoring your customers’ preferences and choices increases the chances of upselling and soon enough customers start to enjoy your added suggestions and enhancements and wait for them.

 

 

Easier email or text messages integration

 

With a smart POS integrated with CRM, bonding with customers and creating a connection with them even after they leave your business is very easy.

 

Use the customers’ information to send them emails or text messages with items they like or enjoy that are maybe discounted or new.

 

Track their orders in your POS to identify their preferences so you know which upcoming offers to send them so you easily drag them into your place and have them spend more and more.

 

Your reports show that your customers always request a specific add-on with their burgers, remind them of other add-ons on their next purchase.

 

Create newsletters featuring different toppings in an appealing way so they visualize their orders and order them even if they were more expensive.

 

Integrated loyalty programs

 

Again with your POS and CRM you can create integrated loyalty programs and rewards programs for your customers.

 

With these programs you offer them special discounts on special events.

 

You can identify their mostly bought items to offer a special bundle with them for these clients.

 

Once they use the offer whether for a delivery or a dine in, it’s your chance to upsell them.

 

Make sure the items you want to upsell are visualized attractively.

 

Visuals appeal customers’ emotions making them stop, look and want to taste, Amy Dennis writes in her blog “Is professional food photography important for restaurant branding?”

 

Upselling was never an easy game to play. Corona virus has drastically risen the need for upselling. Choosing a smart POS that integrates different features saves you lots of time and effort. Imagine tracking manually your customers’ preferences?

Sounds crazy, right?

 

Well, it is but the good news is that you won’t need to do it manually with the availability of smart POS software like the one BIM POS offers.