Accelerating the order placement process, enabling personalization and precise specification of orders, as well as reducing waiting times – all these factors contribute to self-service kiosks revolutionizing service in QSR-type restaurants. These devices are valued by both customers and restaurant owners. Thanks to the use of techniques such as up-selling and upsizing, the average bill generated by a kiosk can be up to 15% higher compared to orders processed by cashiers. Let’s take a closer look at this phenomenon.
The increase in bill size is influenced by technology that enables the application of mechanisms to boost sales. Digitalization in the restaurant industry is becoming a necessity and a direction for development. In the study ‘Poland on the Plate 2023’ conducted by Makro, 51% of restaurateurs indicated the need to implement digital solutions in their restaurants. Meanwhile, 68% of Polish consumers, according to the Retail Report study, declare they would use self-service technologies if such an option is available. One of the key benefits offered by self-service kiosks in restaurants is the ability to make direct payments, eliminating the need to approach the cash register. As a result, customers often decide to spend more. How does this happen? Thanks to visually attractive menus and suggestions for individual products, customers are more inclined to explore and order dishes they might otherwise skip if ordering with a cashier. Kiosks also allow for a better presentation of the menu and options tailored to individual customer preferences, making the offer more personalized. The advantage of self-service devices lies in their flexibility, which allows for the application of various mechanisms to increase sales.
Sales techniques in self-service kiosks in practice
- Up-selling, or add-on sales, is a sales strategy that involves offering customers additional products during the order placement process. The goal is to increase the total value of the order. As part of up-selling, sellers can intelligently compile product sets so that at least one of them generates a higher margin, for example, a drink. Facilitating the acceptance of the offer through a simple “yes” command, combining products into attractive sets, and applying pricing strategies are additional tools that support add-on sales. How does the up-selling mechanism work in practice? When a customer orders a sandwich or burger without any extras or a drink, the up-selling system may suggest adding specific products, presenting the most popular options. In self-service kiosks, up-selling algorithms can offer the customer additional products or services at different points in the order process. Moreover, the technique of upsizing is also used, which involves proposing larger versions of products or sets when a customer selects a single product. As a result, even if the customer decides to purchase a set, the system can suggest an enlarged version of it, thereby increasing the order value.
Example – true story:
One of Ordering Stack’s clients, Samex, an operator of KFC restaurants in Bulgaria, achieved an impressive sales increase at their self-service kiosks – a 3% rise in just three weeks. The Ordering Stack team implemented an update that included an upsizing feature, providing customers with additional suggestions for add-ons during the ordering process. Furthermore, the kiosks’ interface was modified, making the ordering process and response time faster and smoother. Additionally, the payment procedure at the kiosks was improved, simplifying transactions and contributing to a more positive customer experience.
- Cross-selling, or complementary selling, involves offering customers products that complement their current shopping basket. The customer’s final choice creates a set or box where the suggested products complement each other, forming a cohesive whole. For example, when a customer orders a sandwich or burger without additional ingredients or a drink, the cross-selling mechanism may suggest adding matching products, presenting the most popular options. If the customer opts for a set with a burger or sandwich and fries, a suggestion for matching sauces that complete their choice will appear during the ordering process. In the cross-selling strategy, restaurant owners increase the margin on products by combining them into sets in such a way that purchasing them together is more price-attractive than buying them separately. Consequently, products with a lower margin are offered in a set with those with a higher markup, increasing the value and attractiveness of the offer. The cross-selling mechanism activates at key moments of the purchasing process: The first occurs when the customer selects the main product or set, prompting a suggestion for additional options on the screen. The second moment is at the order summary stage, where the customer has the opportunity to reconsider and possibly supplement their choice with additional products.
- Personalization, special offers, and loyalty programs – thanks to the QR code scanner integrated into self-service kiosks, it is possible to connect a restaurant’s loyalty program account to an order or to apply an individual promotional coupon. Kiosks serve as an excellent tool for promoting special offers or premium products. For instance, when not in use, the device’s screen can display advertising messages. Integrating kiosks with loyalty programs provides users access to time-limited promotions and offers tailored to their individual preferences, allowing restaurant owners to create targeted promotional campaigns adapted to their customers’ profiles. Systems operating within self-service kiosks can integrate with restaurant loyalty programs, as seen in the Ordering Stack system. A special window with offers exclusively for loyalty program members can appear on the kiosk screen. Furthermore, customers using the restaurant’s mobile app can receive special push notifications about new items and have the opportunity to use special discount coupons for orders placed at the kiosk. These examples highlight how advanced technologies can support offer personalization and increase customer engagement.
Example – true story:
Pasi Apka, an application developed by the Ordering Stack team for the Pasibus restaurant chain, serves as an excellent example of how this tool can be used to build customer engagement. Launched in the spring of 2023, the app currently ranks in the top ten in the ‘Food & Drink’ category on both the App Store and Google Play, boasting approximately 350,000 downloads. The app functions as a buzzer; after scanning a dedicated QR code from a receipt at the kiosk, the user receives a notification about their order. Its users have access to bonus coupons, discounts, seasonal offers, and special rewards exclusive to the app. Additionally, the application features a push notification mechanism, keeping interested customers informed about offers directly on their phones.
Technical aspects of presenting offers in kiosks
The ease of use, interface layout, and design significantly impact the number and size of transactions at a self-service kiosk. Given the interactive nature of the device, individual parameters are crucial from the customers’ perspective. A user-friendly and clear interface, a bright and spacious screen with high resolution, and a quick response time between commands—all these factors influence the willingness to make purchases on self-service devices. It’s easy to imagine how slow navigation between different tabs of the electronic menu or unclear information presented could ultimately discourage a potential customer from placing an order.
Summary
Combining the capabilities of up-selling and cross-selling with attractive promotions and a loyalty program significantly influences an increase in the average purchase value. Equally important for conversions at kiosks is the arrangement of different product categories and the order of their presentation. Here, a thoughtfully composed first screen showcasing the offer impacts purchase decisions significantly.
For restaurant owners, self-service kiosks, along with loyalty apps, pave the way for gathering data on customer preferences and habits. This data collection allows for a better understanding of consumer needs and effective personalization of the offer, which directly translates into higher order values. Restaurants investing in digital solutions also notice an expansion of their customer base, particularly among the younger generation raised in the digital era, who clearly prefer to place orders at self-service kiosks.
