Primary Blog/Use Case/The Power of Upselling in Breweries

The Power of Upselling in Breweries

Using Data to Elevate Performance

In the world of brewing, we're all about the perfect pairing. And nothing goes together quite like a frosty craft beer and a well-executed upsell!

Upselling involves offering customers an upgrade or premium version of their purchase or adding on related products or services. In the brewery context, this can include promoting a food menu, to-go cans, or merchandise in addition to the customer's regular draft beer sales. Today, we'll explore the benefits of this approach and how we can track it with data and analytics.

The most immediate benefit of upselling is the potential to increase average tab amount. By encouraging customers to add food, to-go cans, or merchandise to their purchase, you're increasing the value of each transaction. Even a minor increase in the average spend per customer can equate to a substantial increase in overall revenue when applied across the total customer base.

As example, lets say your brewery has this profile over a 3 month period.

• 64% of tabs are ‘beer only’ or ‘food only’ ; those have an average tab of $22
• 36% of tabs are more than one category (beer, food, cans, merch) ; those have an average tab of $51

Lets say you were able to convert 25% of the ‘beer/food only’ tabs into the upsell category, we’d have the same amount of total traffic in the door but would increase sales by $35k or 15%.

A sizeable gain over the same number of tabs!

Upselling isn't just about improving revenue; it's also about enhancing the customer experience and increasing your brand exposure.

Food - By offering customers food options with their beer, you're enabling them to make a meal out of their visit. This makes your taproom a one-stop-shop for a night out, increasing customer satisfaction and the likelihood they'll choose your brewery as their destination in the future.

To Go - When customers purchase merchandise or to-go cans, they’re not only increasing their spend at your brewery but also taking your brand into the world. This results in increased brand visibility and can potentially attract new customers. Every t-shirt worn or to-go can shared with friends is a free advertisement for your brand.

So, how does data play into this?

Data and analytics provide the insight required to make effective upselling strategies. By analyzing customer purchase behaviors, you can determine which items are most likely to succeed as upsell items. For example, if data shows that customers who order a particular beer style are more likely to purchase a specific food item, you can train your staff to suggest this pairing (more on this in an upcoming post).

Moreover, data can help track the success of your upselling efforts. By monitoring the increase in average tab amounts and changes in customer behavior, you can continuously refine your approach for maximum results.

Upselling requires training your staff to recognize opportunities and make appropriate recommendations. This can involve suggesting food pairings with beers, offering to-go cans of beers customers have enjoyed, or promoting merchandise when it aligns with the customer’s interests. When done right, upselling doesn’t feel like a sales push; it feels like a value-added service.

Remember, every interaction with a customer is an opportunity to add value – for them and for your brewery. By utilizing data-driven upselling strategies, you can maximize these opportunities and drive significant growth for your business.

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