Up-sell, Cross-sell
Dunkin Donuts (the major donut chain): If you buy 8 donuts for $3.20 they immediately offer you a dozen plus one for just $3.99. Dunkin Donuts
increases their revenue by 25% and the customer feels great because they got 5 more donuts for half price. I have sat in amazement watching
how many people say “OK -give me five more glazed.” In fact, I highly encourage you to perform this fun test for yourself. Get curious. The next
time a business asks you if you would like to purchase an additional item ask them, “How many people out of 10 say yes?” Consistently, you will
hear 3,4,5 or more.
Compelling Incentives & Database
At the counter, hold a drawing for "Free Pastries For a Year -- A $250 Value". Give the winner a special cake on their birthday, spouse's (or
significant other's) birthday, children's birthdays, anniversary, valentine's day, Christmas or another special occasion. On the drawing card, have
each prospect write in the dates of their special occasions, as well as their name, email address and telephone number. They can also write
special instructions or preferences. One prospect will win first prize. The key is that everyone wins second prize (though you don't tell everyone
that). It might be 20% off their order for the whole year. Now you have a customer database, you have specific special dates for your customers
and you can send them targeted emails (or make targeted calls) throughout the entire year. You know your gross margin, so you know what you
can afford to give away (20%?) and still make a handsome profit. Furthermore, you can give the customer such a positive experience that you
can leverage them for referrals forever.
Script: Send this sample email script to your 2nd place winners and see what happens. "Dear Susie, Congratulations. You have won second prize
at ABC Bakery. I'm sorry you didn't win first prize -- that went to Mrs. Jane D. of Colorado Springs. However, your valuable second prize earns
you 20% all baked goods and pastries over the next twelve months. Please bring in this letter when you come and we'll instantly apply your
discount to any purchase you make. See you soon."
When your database tells you that their birthday (or anniversary, or spouse's birthday, or other special event) is coming up, you can send them
an email about 10 days in advance and remind them of their 20% discount. Follow up the email with a call to increase conversions about 30%.
Any staff person can do this because the email is cut and paste, and the phone call is a basic script.
Bakery, Donuts