Successful Upselling: Lessons from SoundHound’s Phone and Drive-Thru Ordering

As QSR and fast-casual executives look to increase revenue without compromising customer satisfaction, one often underutilized tactic is upselling. Recent research shows that, on average, restaurant employees only attempt to upsell 42% of the time (Source: Bernstein).

With SoundHound AI-powered voice assistants, however, this rate can skyrocket to 100%. This fact alone will drive a sizable increase in incremental revenue (See The Power of 100% Upsell: Maximizing Revenue at Every Drive-Thru).

Upsell conversion rate

But even with the consistency of SoundHound's upselling, equally important is the success rate of the upselling attempts, also known as conversion rate. Average successful conversion rates average around 3% or less, but some of our customers are seeing acceptance rates of 25 to 35% on specific upselling categories, such as upsizing, whether that's a soda or an order of fries.

Key strategies for successful upselling

SoundHound has gained key insights into upselling best practices from years of testing the technology and working with merchant customers to optimize our Smart Ordering (phone) and Dynamic Interaction (drive-thru) solutions.

Here are some of the best practices.

Prioritize High-Margin, Low-Price Items

Focus on items that customers are more likely to add to their orders and that provide a good profit margin, such as low-cost add-ons, combos, and bundles, or extra toppings for pizza or pasta, or sides like curly fries or garlic bread.

Strategic Timing

While AI can upsell at various points in the order process, it's crucial to find the right balance. Consider testing upsells at the start of an order, during the middle, and at the end to see what works best for your restaurant.

Size Upgrades

Offering size upgrades, especially for drinks, has shown impressive success rates. Some brands see 25-35% acceptance for upsizing offers, with sodas being the most successful.

Carb-Heavy Items and Sides

Items like egg rolls and fries tend to perform well in upselling attempts. Consider featuring these prominently in your upsell strategy.

Desserts and Main Items

While desserts have mixed results, main items like sandwiches have lower success rates. Test different approaches to find what resonates with your customers.

New Product Promotion

While new items may initially have lower success rates (3-5% acceptance), upselling the products will raise awareness. It may also encourage patrons to return to order the item during a future visit.

Balancing upselling with operational efficiency

While aggressive upselling can increase revenue, it's important to consider its impact on your operations:

Speed of Service: Upselling may slow down the ordering process slightly, particularly if multiple upsells are leveraged within one order. Use this strategically - it can be particularly helpful if your kitchen is running behind.

Prep Time: When selecting items for upselling, consider those that don't require extensive preparation. This can help maintain efficiency while still increasing sales.

Time-Based Configuration: Set up your AI system to adjust upselling strategies based on the time of day. This can help expedite checkout during busy periods while maximizing opportunities during slower times.

Leveraging AI capabilities

SoundHound Smart Ordering and Dynamic Interaction offer several advanced features:

1. Rotational Upselling: Set priorities for upsold items and rotate them to keep offers fresh and relevant (only Smart Ordering).
2. Smart Recommendations: SoundHound voice assistants won't duplicate items already in the cart, ensuring relevant and appealing upsells.
3. Visual and Audio Prompts: SoundHound Dynamic Interaction provides visual prompts on ordering screens and custom audio responses, enhancing the upselling experience.
4. Cross-Selling: SoundHound can suggest additional items related to what's already been ordered, like offering extra dipping sauce with wings.
5. 3rd-party Integrations: Advanced upselling tools from other 3rd parties can be integrated with SoundHound AI voice assistants.

Questions to consider

As you implement AI-powered upselling in your restaurant, consider the following:

1. What is the ideal number of upsell attempts per order for your restaurant?
2. At what time of day do your customers seem most receptive to upselling?
3. Which specific menu items in your restaurant would be best suited for upselling, taking into account factors such as profit margins or ease of prep?
4. How can you balance aggressive upselling with maintaining a positive customer experience?

Get customized upselling advice

As you can see, there are many strategies you can use to increase upsell conversion rates.

Speak with one of our restaurant specialists to get personalized recommendations for how you can skyrocket your upsell success rates.

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