Before I give you some tips on what you should and shouldn’t do to increase the average dollar sale that your customers spend with you, have a think about these questions:
- On average, how much do your clients spend with you each time they buy from you?
- What could you do to increase the average purchase value of each customer?
- What should you increase it to?
My previous blog on the different ways to increase your number of transactions highlighted the notion that focusing more attention on getting past customers to buy again is 6 times easier (and cheaper) than finding new customers. This is most definitely still applicable here. In fact, it is often even easier to increase the value of each sale: you have already done the hard work in getting someone to buy…. now you just need to influence how much they spend.
The reality is that acquiring new customers is hard and costly work, but increasing the sale total with an already engaged customer is relatively easy and highly profitable.
Imagine the difference that a 10% increase the value of each sale would make. It’s not a big jump, right? There are over 70 different ways in which this could happen. I’ll fill you in on a few:
- Present additional related products: Once a customer has made a decision to buy from you, they become psychologically more amenable to an additional purchase (especially if the next item is cheaper than the purchase they have already committed to). A perfect example of up-selling is McDonald’s iconic catchphrase “Would you like fries with that?” This simple question added $20Million in addition weekly profit!
- Offer an upgrade: Offering incremental upcharges to your customers can significantly add to the top line… and it costs nothing to ask! You may experience this a lot when you go to the cinemas to watch a movie, where the employees always ask if you would like to upsize to a larger drink or popcorn, to last the whole movie of course. Consider what your business could offer that will provide additional value to the customer.
- Raise your prices: Your product or service will willingly be bought by the customers who believe that they are getting better value. Not only that, they would also be willing to pay more for it! The more unique you make your product or service, and the better you inform your customers, the more valuable your target market will perceive you to be.
Now that you know a few ways that will easily and cheaply increase your average dollar sale, here are a couple of tips highlighting the specific things you want to avoid doing:
- Assume your customers know every product or service you have available, or the details and benefits of each of those products or services
- Fail to offer an upgrade. It costs nothing to ask!
- Offer what YOU believe your customer will buy, especially if it is less than what they really need.
It’s time to brainstorm all the different ways your business could increase their average dollar sale. Call me on (02) 9146 4439 or click here to book a 1 on 1 session with one of our business coaches to discover more!
And don’t forget…
“Small changes eventually add up to huge results…”