March 5, 2024
Increase Your Average QSR Order with KiosksIncrease Your Average QSR Order with Kiosks
In today's evolving restaurant landscape, embracing innovation is key to staying competitive and meeting the dynamic needs of modern consumers. As technology continues to reshape the dining experience, restaurant operators are increasingly turning to self-service kiosks as a strategic solution to enhance efficiency, improve customer satisfaction, and drive revenue growth. From streamlining ordering processes to offering personalized menu options, kiosks represent a powerful tool that empowers both operators and patrons alike. In addition to all the operational enhancements, kiosks have another distinct advantage: consistent upselling or cross-selling.
Upselling and cross-selling are good for business. While some merchants have greater success with upselling, aka suggesting a higher-priced option than the menu item the customer is considering, others find that cross-selling, recommending sides or pairings, is a more effective approach.
Just how lucrative are upselling and cross-selling? The success that quick service restaurants (QSRs) have had with self-service kiosks are a great example. Restaurant Dive reports that several major chains are investing heavily in kiosks, with Shake Shack reporting that kiosks are the company’s highest margin channel and is testing features that can upsell at kiosks. Yum Brands also reports that kiosks drive higher checks than counter sales – and higher margins through efficiency and opportunities to use data to personalize experiences. Crazy Bowls & Wraps participated in a case study using Elo hardware and bite lift software to design their kiosks, reporting a 38% in average order. These are results restauranters can’t ignore.
The key is the kiosk. Restaurateurs can configure self-service solutions to upsell or cross-sell during every customer interaction, never missing an opportunity to increase revenue.
How to Make Upselling or Cross-Selling on Kiosks Work
The most effective strategies for leveraging self-service kiosks for upselling or cross-selling will vary business by business. However, all merchants can benefit by building these elements into their strategies:
A successful kiosk selling strategy starts with data analysis to uncover valuable insights about specific customers as well as a restaurant’s broader target audience. This requires full transparency about what the restaurant does with a customer’s information to safeguard their privacy. However, consumers who opt into the restaurant’s loyalty program, will expect the restaurant to use their data to make relevant offers and enhance customer experiences. Restaurant operators can make data-driven upsell or cross-sell recommendations based on the diner’s history or offers that appealed to other customers with similar demographics. By using data effectively, merchants should see an increase in revenues.
Restaurants should design an upselling or cross-selling scheme strategically to ensure the final order is the one that will result in the greatest customer satisfaction. For example, someone purchasing a sandwich may be happier with a combo that includes a drink and a side for just $2 more. Or, if most customers often pair that sandwich with a limited-time only dessert, like pumpkin pie or strawberry tart, the kiosk can suggest it at a promotional price. It’s most beneficial to make upsell or cross-sell suggestions based on data rather than suggest menu items that have little to do with the purchase.
To craft the most successful selling experience, restaurants deploying kiosks should consider automation and machine learning. It’s the technology behind Amazon’s successful e-commerce upselling and cross-selling strategy. Machine learning mines massive amounts of data to understand which items customers frequently buy together, avoiding the “if/then” logic that can miss the mark with customers.
Successful restaurateurs know people “eat with their eyes.” Dining experiences begin with people looking at food and triggering appetite and memory of past experiences with the type of cuisine they see. Visually rich touchscreen kiosks present a great opportunity to engage diners. People respond more positively to bright, enticing images than to clunky blocks of text on a digital menu.
The Benefits of Upselling or Cross-Selling with a Kiosk
While an expert employee at the counter may turn in impressive numbers with upselling and cross-selling, restaurants may find even greater benefit when upselling or cross-selling on kiosks. First, 65% of QSR customers prefer to order at a kiosk rather than give their orders to employees, and 79% believe it makes their experiences more convenient. There’s also less pressure to order quickly – and less judgement. If the customer wants a super-sized item or two desserts, there’s no concern that they’ll face disapproval from the employee or others in line. Additionally, customers can take their time and consider the upsell or cross-sell offer, so they can order exactly what they want for the best value.
When implemented effectively, kiosks can help businesses grow customer lifetime value (CLTV). Loyal customers spend 67% more than new customers. The 80-20 rule applies: 20% of a restaurant’s customer base typically account for 80% of its revenues. Furthermore, restaurants have a great opportunity to foster loyalty with smartly programmed kiosks, often increasing revenues by more than 10%. When customers see the business remembers their favorite meal orders, they’re motivated to visit more frequently for a great time-saving experience. Remember, retaining a current customer is five times easier than capturing a new one, so restaurants have even more reasons to prioritize a kiosk-centric retention strategy.
Choose the Right Hardware for Upselling and Cross-Selling with a Kiosk
In addition to robust software that makes effective upselling and cross-selling possible, restaurants also need the right hardware for their self-service solutions.
A winning customer-focused kiosk platform starts with the right projected capacitive (PCAP) touchscreen that delivers experiences similar to the user-friendly interfaces found on consumers’ devices. With a range of sizes to pick from, there’s an optimal form factor for every type of kiosk. Pairing great software with purpose-built hardware creates a strong kiosk experience that supports the upsell, the cross-sell, and new revenue growth. Restaurants committed to transforming customer experiences will bring together all elements to create loyalty-building self-service kiosks.
To learn more about Elo touchscreens, contact us.