Operations: Upselling & Cross-Selling Part 1
Today’s business climate calls for a strategy to increase sales and profits. One of the best ways to gain sales and profits is to increase the size of the customer order. It is easier to get the customer placing an order to increase the size of his order than to find a new customer. Upselling and Cross Selling are useful tools.
Up Selling involves getting the customer to buy a larger pizza, add toppings, etc. Cross Selling involves adding items to the order. Up Selling Options A key to Up Selling is the selling message. No matter what kind of additional item, size, feature you are trying to sell the customer Be specific in your message. Don’t just ask if they want to order a larger size but “Would you like to order a medium pizza. Usually it’s $3.00 more but tonight it is only $2.00?”, “Would you like to add pepperoni or sausage to your order tonight?” Suggestive selling is as effective as discounting. Remember that adding additional toppings will usually add straight to your bottom line. For example, selling extra cheese for $1.00 might only cost you $.25. That $.75 difference goes straight to profits.
Cross Selling Options The Cross-Selling strategy is like Upselling. Being proactive with a loose script might make Cross Selling easier, but any kind of planning is a must. A simple offer is very effective. “Would you like to add an order of chicken wings?” may be all it takes to get that additional sale. People like suggestions. Think about what you currently offer and also what other items you might add that are simple to handle and have a good perception of value from customers. Try having a go-to Cross Sell option from each category: beverages, appetizers/starters, main dish items, side dishes and desserts. An effective Up Selling or Cross Selling program requires a plan. Your plan should be simple, detailed and incorporate both Up Selling and Cross Selling. The same techniques apply to Delivery and Carry Out, Counter Service, or Table service. See Delco’s February 2017 newsletter for suggestions on how to build your plan.
Adding something special to specialty foods for more than 50 years.