Upselling and cross-selling are the secrets to achieving fast and sustainable business growth in the restaurant and milk tea industry. However, if done incorrectly, these two methods can have an adverse effect. So what are effective ways to upsell and cross-sell in restaurants? Let’s find out more with VDS through the article below!
1. Differentiating between upselling and cross-selling in restaurant business
Upselling and cross-selling may sound similar at first glance, but they have many differences. Below is detailed information about upselling and cross-selling.
1.1 What is upselling in the restaurant business?
Upselling is technically called incremental selling. This is a technique used frequently to boost sales revenue. The seller persuades customers to buy more products or spend more money than they originally planned. Some common forms of upselling include suggesting deals for customers, suggesting combos, advising on the benefits of higher-priced products, etc. The core of upselling is stimulating customers to spend more.
1.2 What is cross-selling in the restaurant business?
Cross-selling (or suggestive selling) is a sales technique that shares the same purpose as upselling: encouraging customers to spend more money. The seller suggests food or drinks related to what the customer has ordered to encourage them to order more items. The special thing about suggested items is that they have complementary features or similarities with items that customers have already ordered, thus enhancing their experience.
2. Why do restaurants need upselling and cross-selling?
The first benefit that both up selling and cross selling bring is boosting revenue for the restaurant. Both techniques encourage customers to buy more products or purchase higher-priced products, thereby significantly increasing revenue.
Next, effective ways of up-selling and cross selling in restaurants will help improve the shopping experience for customers who receive accurate suggestions for food and drinks that suit their budget and needs. Your restaurant will leave a stronger impression on customers.
Finally, both up selling and cross selling will help you identify long-term potential customer groups. Regular customers are willing to spend money on suggestions made by the seller. Therefore, using up selling and cross selling techniques will help you select potential loyal customers, from whom you can create unique care policies to maintain their attention.
3. Effective ways of upselling and cross-selling in restaurants
To have effective upselling and cross-selling techniques that bring high revenue, you can apply the following methods:
3.1 Do not overly pressure customers
The more pressure the seller puts on the customer, the more uncomfortable they feel and the less likely they are to buy anything else. Moreover, this kind of pressure can make customers resentful towards your restaurant. The key is to be gentle with customers, suggesting options for them to consider without forcing them to buy anything.
3.2 Focus on customer needs and preferences
You should ask some small questions about customer needs and preferences so that they can share what they really want or like. From listening to your customers, you can understand their needs and suggest purchases that suit them well enough to persuade them to spend more.
3.3 Use digital menu systems
Digital menus are currently one of the most convenient electronic menus available today. With digital menus, customers can fully read menus while also seeing realistic images and videos of food and drinks. In addition, digital menus convey important information about promotions or special dishes that attract customers’ attention.
3.4 Using attractive video menus as a means of luring guests
Did you know that menus play an important role in deciding whether or not a guest orders food? The more attractive and compelling your menu is, the more guests want to order items on it again and again.
If traditional paper menus are too dry or cannot fully illustrate how delicious dishes are then digital menus can increase appeal and leave a deeper impression on customers. Digital menus will display beautiful and lively images of dishes, making customers feel captivated and curious enough to try them out.
3.5 Let customers see upselling and cross-selling suggestions throughout the restaurant
Many people believe that up-selling and cross selling can only be done at the cashier or when staff are recommending food items to customers. In fact, you can spread upselling tips all over your restaurant using advertising screens. For instance, you should install advertising screens where guests usually sit or walk by such as near the entrance, in the hallway, etc., with content about new promotions, special dishes, etc.
3.6 Combine promotional programs with professional advertising videos
When you have new deals or discounts that you want to promote to customers, create professional advertisements and show them on TV screens in the restaurant. This will attract customer attention and persuade them better.
3.7 Make customers spend more money
Making customers pay more for food or drink is something every restaurant should do. You should apply various ways to make guests order more comfortably.
3.8 Create comfort and convenience for customers
The better the customer experience, the more sustainable the restaurant’s business operations. Therefore, the most effective upsell and cross-sell techniques in a restaurant are when customers feel comfortable and at ease when experiencing the service of the establishment. Mixing advertisements on screens, without pressuring customers,… is the way to provide a comfortable feeling for guests while ensuring revenue growth.
3.9 Focus on quality over quantity
Upsell and cross-sell the right items that customers need, never pressure them to buy more than they require. Concentrating on improving sales quality will enhance customer experience and ensure the sustainability of the business.
3.10 Include gifts in upsell combos
Adding small gifts to upsell combos will delight customers, bring joy to them, and help them decide on the package of items. Some suitable gifts to include with food items are drinks, small cakes, desserts, or appetizers. You can refer to provide your own selection.
3.11 Understand customer behavior
The key to success in upselling and cross-selling is understanding customer behavior. The better you understand your customers, the easier it is to sell additional items to them. You can conduct surveys at the restaurant to gather preliminary information about customers’ needs and preferences. Then, with each customer, you can inquire and converse to listen to their desires and provide appropriate upselling and cross-selling suggestions.
4. Example of upselling in a restaurant
A customer and their family went to an Indian restaurant. They had already ordered familiar dishes, but that day the customer wanted to try some new dishes. However, the customer’s main concern was not knowing how the new dishes tasted – they were worried that if they ordered them and no one liked them, it would be a waste.
Luckily, the Indian restaurant used an electronic menu, a type of menu that allows customers to watch videos about the dishes right on a TV screen. After watching the video, the customer and their family understood the ingredients of the dish, the cooking process, the description of the taste, etc. As a result, the customer felt reassured and ordered more new dishes to enjoy.
5. The principles for successful upselling and cross-selling
- The first principle is timing, sales staff must choose the right time to advise on upselling and cross-selling effectively for customers. Observe when customers are truly ready to hear your suggestions.
- The second principle: Never force customers, do not pressure customers to order too much. This will make them more uncomfortable and less trusting of your words.
- The third principle, prioritize customer benefits. Always put yourself in the buyer’s position to understand them and provide suitable suggestions.
- Finally, the rule of measurement and control. You must grasp monthly revenue to have upsell and cross-sell strategies in the future.
6. The successful upsell and cross-selling story of restaurants using VDS solutions
Many store owners use VDSignage solutions from VDS and succeed in upselling. Among them is Pho Drive Thru, a Vietnamese cuisine restaurant in the United States. Many customers come to this restaurant just to enjoy the delicious fresh noodle soup. However, when they see images of crispy, delicious sandwiches with rich fillings displayed on advertising screens, they become curious and interested so they decide to order a try. As a result, Pho Drive Thru restaurant not only increases revenue but also successfully introduces new dishes to customers.
7. The VDSignage solution helps successful upselling and cross-selling for restaurants and bubble tea shops
The effective way to upsell in a restaurant and the effective way to cross-sell in a restaurant is the VDSignage solution. This software will help shops upsell through attractive advertisements on the existing TV screens at the shop. Instead of having to pay a large amount for a traditional digital advertising screen, with the VDSignage solution, you only need to use the available TV screens at the shop to display multimedia communication materials for the shop’s products and services. This way, you do not need to spend a large amount on purchasing and installing screens. We call it Minimum Cost – Maximum Effectiveness.
The VDSignage solution helps convey vivid and eye-catching images of the shop’s products and services to customers. This encourages customers to spend more at the shop.
In conclusion, these are the insights from VDS about effective upselling and cross-selling in restaurants. Don’t miss out on this excellent and effective revenue-boosting solution, contact VDS today for detailed advice!
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