May 15, 2017 Blog
Retailers and restaurant operators know upselling can improve the bottom line. They don’t always know, however, how to do it effectively. It’s not necessary to insist your sales associates put pressure on customers with a hard sell. Try these strategic upselling tips to help increase customers’ average spend:
- Don’t say a word. Whether you operate a restaurant or a retail store, a part of your upselling technique can be totally silent. It’s largely a matter of smart positioning. Restaurant menus can be designed to include images of complementary items served together, like a glass of wine with a thick steak or golden brown French fries with a hamburger. This can be even more effective when complementary items are mentioned in the menu’s text.
For retail stores, smart positioning means displaying related merchandise together. An apparel store can pair clothing options and other accessories on a mannequin so customers can see how they complement each other and be tempted to purchase the entire ensemble. A hardware store, meanwhile, can position a spinner rack of paintbrushes near shelves that hold paint.
- Free samples. Giving out free samples is another way to convince customers to try a product they would not have otherwise purchased. Sampling doesn’t have to be limited to restaurants or grocery stores. Retailers that sell some types of products, such as cosmetics and perfumes, office or craft supplies, or hardware, can consider offering samples that can encourage sales.
- Subtle suggestions. One of the most effective upselling tips centers on the art of persuasion. Sales associates should look for cues that can prompt shoppers to add extras to their carts. For instance, mentioning a discount or a promotion, such as saying, “These are two for $10 this week,” or asking if the shopper saw the gloves that perfectly match a coat.
An important upselling tip: it’s wise to keep the number of suggestions limited. If a customer doesn’t respond to an initial suggestion, make no more than one additional attempt before calling it quits. Also remember the Rule of 25: the value of the item or items being upsold should never exceed 25 percent of a customer’s original intended purchase.
- Leverage technology. Technology can be an excellent upselling tool. Customer-facing displays, digital signage, and self-service kiosks can all be programmed to convey messages and depict images that lead to add-on sales.
Finally, no list of upselling tips would be complete without a mention of the value of mobile Point of Sale (mPOS) devices. Arming employees with mPOS devices puts customer data, such as product preferences, purchasing history, and loyalty program redemption information, at their fingertips. Sales associates that use these insights in upselling will help them make relevant suggestions that increase the potential for success.
Remembering these upselling tips can make a big impact on sales and, if done properly, also enhance the customer experiences you provide.
To learn more about how technology can support your upselling efforts, contact Bemacash.
Contact us today for new ideas on how to improve your business.