Upselling and cross-selling have effectively managed to increase the revenue of businesses by offering the customers just right products along with the products they have already purchased. E-commerce businesses like Amazon use this technique smartly to increase their profit margin. The e-commerce giant uses “Customers who bought this also bought this…” technique to sell more products that match the category of product which the customer has already purchased.
These techniques considerably increase your revenue no matter what industry your business is in. If you own a restaurant then installing the right point of sales system might help you to implement the upselling and cross-selling techniques effectively. But to understand how a POS system can help you upsell and cross-sell first you need to know what Upselling and cross-selling is.
Difference Between Upselling and Cross-Selling
Knowing the difference between these two words will put you an advantage. People often confuse the two terms and use them interchangeably. But, understanding when to use which one will make you understand when to approach a customer with what term.
Upselling
Upselling is a business technique where you suggest a product to the customer which makes the primary product even more expensive. For example, if a customer purchases a printer then you might suggest him to purchase ink as well. Or, as mentioned earlier, adding fries to the burger. It is something which comes as an accessory to the primary product or lies in the same category as the primary product.
Cross-Selling
Cross-selling is a business technique where you suggest a product to the customer which can be purchased in conjunction with the primary product. For example, suggesting the customer purchase a scanner when a printer is purchased.
Now that we have understood the difference between these two words let’s understand how a right POS system can help you to upsell and cross-sell.
1. Being Updated About Related Products
Latest POS software comes with advanced features which allows your employees to view the products related to what a customer is purchasing. These updates are available for both online as well as offline businesses. This POS system allows you to quickly have the information about the products in your shop and suggest the customer about the same.
Let’s take an example, consider a customer orders a bottle of wine along with their meal then your employee can quickly browse through the related items and suggest them for dessert. The customer wouldn’t mind ordering delicious dessert if they are suggested to order at the right time and a right dish. The POS system allows your employee to browse through the e-menu and can quickly suggest even more items.
2. Know Your Customers
Customers feel welcomed when they are treated very well as they enter your restaurant. But they feel at home if you call them by their name and remember what they ate last time and if they would like to order the same dish or try something else. But, memorizing all these can be a little tough. That’s where the modern point of sales system will save you.
The POS systems today record customer’s buying history and store it so that you can use the history to know them when they arrive the next time. With the knowledge of what the customer ordered last time, it becomes easy to upsell and cross-sell to the customers.
3. Design the Menu Smartly
The menu is the first thing that customer looks into after arriving in a restaurant. It is like the face of your restaurant which will decide if they want to eat at your restaurant or not. Therefore, designing the menu smartly will not only help your customers decide but also it will help you to upsell and increase your revenue.
After a customer opens the menu card they start looking from the right column. So, it makes sense to put your high-selling dishes on the top. People often find it hard to choose from the whole range of items on the menu. So, placing the most ordered item on top makes it easier for them to choose.
Another thing is choosing the right area to place the upselling offer on the menu. For example, putting cheese right next to pizza, or dip sauce right after breadsticks, or fries after burger will automatically attract the customer. A POS system allows you to create e-menu so that you can observe the customer order trend and can shuffle the names of the dishes as per the need.
4. Customers Love Discounts and Offers
When it comes to discounts and offers customers line up. Using a POS system, you can set up a display where latest offers and discounts are visible to all the customers as they walk into your restaurant. With the latest POS system, you can connect the display to your system and display the latest offers.
For example, if a customer is about to order a large chocolate shake but then comes across the display which shows the latest offer that ‘Order a large chocolate shake and a mini burger and get 10% discount’ then the customer might just change his order. And you would have just made a profitable revenue. The modern POS system also helps while the customers are in the queue. Because, while standing in the line customers will come across different offers and might as well think of purchasing it.
5. Staying in Touch
The latest POS system allows you to stay in touch with your customers as they offer the email integration features. You can customize an email thanking the customer for their purchase and updating them from time to time about the latest offers in your restaurant.
All you need to do is ask for their email while billing. Once you feed in the email address it will be stored and added to your mailing list. Staying in touch maintains a strong relationship with your customers and makes them feel welcome every time. And it also urges them to consider what you are offering in the upsell and cross-sell options.
In conclusion, upselling and cross-selling is an art you must learn. It should make your customers feel comfortable and not frustrate them. Always give a sensible choice to your customer which will increase your revenue. Overall, choose a right POS system that offers you and your staff great features and is easy to learn and use.
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