Caterer Academy – Making a success of upselling

25 November 2011 by
Caterer Academy – Making a success of upselling

Upselling is a technique that can be appealing to customers and be good to your bottom line - but you have to go about it in the right way, writes Paul Clapham

The term "upselling" is still viewed as something of a dirty word in the hospitality sector. Some embrace it, while others shudder at the thought of putting customers off. But the hospitality trade still has a lot of angles to make upselling successful without annoying the guests, and they are typically underused.

The key point to recognise and sell to staff is that upselling is not the same as arm-twisting. Until you ask, you have no way of knowing whether the customer who orders, say, whisky and soda would actually like a premium malt.

Also, the customer tends to be a bit embarrassed about asking for the cheapest. It is good sales practice in any business to offer a choice.

One of the biggest frustrations for business owners in retail trades is customers telling them: "Oh, I didn't know you did that." Therefore, not only is it good salesmanship to introduce additional products, it's also good service.

Upselling is also about increasing profits. But it is very definitely not about treating the customer as a cash cow, there to be milked. It should make the customer feel special.

It is about quality, too. Not everyone wants their business to be known as cheap and cheerful. You want customers to come to you for excellence - of service, of environment and of product. So tell them all about the latter. How else will they know?

The ‘specials board' is recommended by all the experts and it usually results in higher ticket sales. Feature new dishes on the board and use it to promote new drinks, too.

Two for the price of one is reckoned to boost overall profitability.

Trial is a great upselling technique and it is so little used. Serious real ale drinkers are used to asking for a taster, but most drinkers don't. The customer can discover a new product that they associate with your business and the offer itself is friendly and generous. The same principle should apply to the menu. It's not as easy - but it's at least as effective.

This applies especially to new products (and indeed a new menu). Any supplier who launches a new product without encouraging sampling by providing free product is being unrealistic.

People are cautious - they don't want to spend £3 on a drink which they might not like, but they are ready to try something new. Sampling one bottle of beer around a group also creates a bit of theatre: it adds to the customer's visit.

Upsizing has had a bad press thanks to the documentary on fast food ‘Supersize Me' but it's still wholly valid. Double up for a pound is a basic offer that can boost spirit sales quickly.

The same applies to soft drinks via post mix. And two or more people ordering a glass of identical wine really ought to be offered a bottle, or at least shown the different glass sizes (most go for the larger glass).

Upselling in the restaurant is harder. Portion control prevents upsizing and appetites and diets restrict ordering. Talking through the menu, stressing the chef's signature dish is the most effective - but it's not an easy skill to learn.

Make sure everyone sees the sweet trolley and the cheese board (another great trial opportunity) and is told the choice of coffees available.

six tips for success

1 Product knowledge is key and young staff probably don't have it . If someone orders a whisky trading them up from Bell's to a smoky malt could lose a customer, not add profit. So teach them!

2 However young and inexperienced, waiting staff should learn the menu backwards and have tried the dishes.

3 Convince staff to introduce themselves - ‘Hello I'm Emma/James. How can I help?' It personalises the service immediately and so creates the relationship for upselling. Encourage them to learn and use customers' names, too.

4 Don't just criticise failure to upsell, reward success.

5 Have a plan - tell your staff what today's or this week's upsell product is. Especially for young staff same-old, same-old gets dull and the same applies even more so to customers.

6 Boast about your suppliers - we buy this wine/cognac direct from France; our latest cheese comes from a farm ten miles away; all our lamb comes from the same hill-farm in Wales.

It screams quality, it justifies premium pricing and people are concerned about food sources and food-miles.

Tips and advice provided by: David McHattie, chief executive of Customer Service Benchmarking; Ann Elliott from Elliott PR and Marketing; and Hilary Mosedale from Cherish the Customer

QUESTIONNAIRE

For each question rank the answers in order of importance, with the most important first: Answers are at the bottom of the page

1) Which of these questions is most effective in upselling to customers? a) What can we do that will make your visit better?
b) Is there anything else?
c) Have you seen our special offers and our specials board?
d) Would you like to celebrate with Champagne?

2) What is the most important thing staff can do to improve their chances of upselling? a) Smile, be welcoming and treat the customer as a valued friend throughout their visit.
b) Point out all the special offers and invite customers to join in any draws or competitions.
c) Know the menu, the wine-list and the complete bar offering off pat, including prices.
d) Focus on key elements such as selling sweets, the cheese-board or starters.

3) What is the main aim of upselling? a) To increase the total sale to each customer.
b) To improve the image of the business by selling premium product.
c) To encourage repeat visits and recommendations.
d) To make the customer feel special.

4) Which of these upselling sales supports works best? a) Free offers including samples on the bar.
b) Lots of regular new product offers.
c) A well publicised specials board
d) The chance to win a free evening meal on next visit.

5) When should you actively upsell? a) When a customer asks for advice.
b) To every customer.
c) When the prompts like desserts and coffees are relevant
d) When a group show signs of pushing the boat out.

6) What is the most valuable thing management can do to improve upselling? a) Train staff, especially young staff, how to upsell.
b) Give incentives for enthusiastic, successful upselling.
c) Demonstrate the principle by personal example.
d) Show staff the results of upselling and remind them that it's profit which pays wages.

Sponsor's message

Lamb Weston logo
Lamb Weston logo
By offering customers an additional potato option, you encourage them to upgrade from their regular choice and in doing so help to drive profits, with products such as Twisters and Crisscuts giving a 47% higher yield in comparison to normal fries. With greater plate coverage and an additional cost per sale, upgrading can be extremely lucrative and should be highlighted on menus, flyers and encouraged by staff at the point of order.

Presenting alternatives to regular fries as limited editions not only helps to keep menus interesting, but also offers customers the chance to try something new and different. This provides a great way of trialling varieties to discover the most popular and highlighting which should be considered as part of the regular menu.

Bowls of chips and wedges also provide the perfect upgrade to crisps and are a fantastic way to increase revenue and profit from lunchtime snacks and sandwiches.

Philippa Anderson, UK Marketing Manager at Lamb Weston

Questionnaire answers
1) CADB; 2) CBAD, 3) CDBA; 4) CBAD; 5) BCAD; 6) ABCD

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