Upselling can simply be defined as a method of inducing a customer to spend more on a purchase, either by buying a more expensive version of the item they are looking for, getting add-ons if applicable or simply upgrading the merchandise. A talented business person can use their POS for upselling, thus increasing their revenue. As a business owner, you can use your POS system for upselling through various means depending on the business model you run. Some ways of doing this include:
The Use of Combos
Using combos is an effective method of upselling, which is why large, profitable franchises use it on a regular basis. Some reports indicate that on average, combo deals are taken up by one in four customers who visit a restaurant. This is why many fast food chains have used this upselling methods for ages.
If you happen to run a quick service restaurant, for instance, you can combine several menu items such as fries, soda and another menu item. This way, when the customer purchases a burger, they can be encouraged to take advantage of the combo meal which usually seems to offer more value for money. In addition to increasing sales, this also improves customer satisfaction when done correctly.
Using Tableside & Online Ordering
When your company makes use of a mobile POS, you can change the way diners interact with servers. The use of a mobile POS means that the server can take and edit orders from any location, including on the tableside or any part of the restaurant floor. As they are inputting the orders, the system can be designed in such a manner that specials pop up, and these can be suggested to the customers. In this manner, they are likely to order more than they had initially bargained for. This can also be set up for e-commerce applications with online payment methods as well.
The use of discounts can also be used as an upselling method using your POS system. When employed properly, discounts can increase traffic to your business, and consequently increase sales. This can be done by designing the point of sale terminal in such a manner that it will offer discounts based on various variables including customer groups, purchase volumes and promotions. Installing this type of system usually requires a more sophisticated point of sale system, which can determine if the criteria for discounting has been achieved, and then make the appropriate calculation based on the discount model you have chosen.
The Use of Intelligent Reporting
Once you have put in place upselling efforts at your POS, you need to track the progress you’re making and whether or not it’s making a difference to your profit margins. For instance, you may need to compare how your meal combos sell compared to single items, or figure out how your discounts affected sales. This requires the use of an intelligent reporting system that will help you organize this data into a format that is easy to interpret and draw conclusions from. Typically, this can be done by using a POS system that has the software necessary for this.
As you can see, when your POS system is explored optimally, upselling will definitely make a difference in your profit margins. Do you have any ideas on how to make better use of your POS system? Do share with us!