January, 26 2010
Why do so many businesses do it ineffectively?
Upselling (sometimes 'up-selling') is a sales technique whereby a saleperson induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale. Upselling usually involves marketing more profitable service or products, but upselling can also be simply exposing the customer to other options he or she may not have considered previously. Upselling implies selling something that is more profitable or otherwise preferable for the seller instead of or in addition to the original sale. This technique is also known as cross-selling.
Here we are going to give just one example in an industry that is effectively using on hold messages to upsell/cross-sell, and if they can do it – SO CAN YOU!
The pizza industry is a 33 billion dollar industry, so what's the top problem in the pizza industry today? Well according to the top pizzeria chains it’s the telephone.
"According to national statistics the average hold-time is 30 seconds (on hold) per customer".
Top pizza chains have embraced on hold marketing messages as a way to boost check and ticket averages by providing phone customers a marketing message before they talk to a staffer. They say that such messages not only help customers affirm their purchasing decisions, but they often steer them to upsell specials or additional menu items. In fact, according to a recent study, 42 percent of customers who hear about the specials in a message will order that special.
Director of telecommunications for Louisville, Ky.-based Papa John’s , labeled the pizza chain's hang-up tally the "abandonment rate." In an effort to lower its number of hang-ups, the company launched an eight-store trial of an on hold marketing message system. The results from the test, he said, are conclusively positive. I've been excited about this since day one," said Leonard. "In my mind, the test is over. I'm convinced this is a valuable benefit to us."
The on hold messages can be customized to push salads or sandwiches at lunch, family meal deals at dinner time, and multi-pizza deals in conjunction with ball games.Pizza operators have reported check average increases of $1.50 when using a marketing message. When the average pizza store does 2,500 to 3,000 transactions per week, think of what that can do to your profits."