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Increasing revenue starts with building your customer base, but it doesn't end there. You also need to get customers to spend more at your retail store or website. Are you wondering how to increase the average spend per customer? If so, then keep reading!
Stop! Before you start trying to grow your business, you must assess your current situation
You need to know how many customers you see each day. Keep a count of the number of customers that visit in person and those who visit your website. Pay special attention to the times of day that you are the busiest.
You also need to know the average spend per existing customer. You won't know how to increase your average transaction if you don't have a base to start with. You also need to pay attention to which products or services are selling the best.
Ways to Increase the Average Customer Spend
There is not a cure-all approach for every business. There isn't even a single method of increasing sales that works with every customer. If you want to know how to increase the average spend per customer, you may need to try several different tactics. Here are some of the most successful, tried-and-true methods for increasing customer spend.
Increase Your Prices
It may seem like a no-brainer, but the easiest way to increase profit is to raise prices. Asking a higher price, especially on the most popular items, can bring in the profits you need for business growth. However, you should tread lightly if you choose to go this route.
Customers are not as brand loyal as you might think. Prices that suddenly and significantly increase can cause your customers to buy from someone else. Raising rates should be done in small increments to avoid sending your customers elsewhere.
Upselling and Cross-Selling
Upselling products is the simple act of encouraging customers to buy upgraded, more expensive versions of the goods and products they were already considering. Upselling items allow you to promote high-quality products that you know your customers want.
Cross-selling introduces customers to goods and products related to what they have already purchased. You can do this in your brick and mortar store and online. Physical stores cross-sell by bundling items or placing like items next to one another. Websites may make suggestions to customers based on the things they are browsing. "Would you like fries with that?" is a time-tested cross-selling technique that everyone recognizes.
Offer Free Shipping
Online shoppers know they will incur shipping charges with each order. Free shipping offers often encourage those shoppers to order from you rather than your competitor. Increase revenue by making shipping free after a specific dollar amount is met. Most shoppers would prefer to spend an extra $10 to $15 on products than an additional $5.99 on shipping.
Note: You can make exceptions to your free shipping offers. Over-sized items are expensive to ship. Feel free to create a sign that heavy or large items are not included in any free shipping promotion.
Run a New Marketing Campaign
Remind customers to come back to your website or physical store with email marketing. Let them know about new deals on products, share coupons, or tell them about special events. The right email marketing campaign can be all you need to increase the average order size.
Occasionally switching up your marketing campaigns is an excellent option for keeping customers interested and energized. Use email and social media to interact with your clients.
Promote Loyalty Programs
Business owners see an increase in revenue from loyalty programs. These programs allow customers to earn points, increased coupons, or special offers based on the amount of money they spend. Loyalty programs do just what they advertise. They create loyalty.
Loyalty programs come in many forms. Most customers will earn points through spending. They might get extra points for leaving online reviews or getting friends to sign up for the program. These popular programs make your customers feel special because they are regularly rewarded.
Boost Sales with Gift Cards
Gift cards are the cornerstone of any retail establishment. Make gift cards easy to buy by placing them at the checkout and with all gift items. Online gift cards can be offered at the point of sale.
Gift cards are great incentives as well. Some large retailers have found that they can increase customer spend by offering $5 to $10 gift cards when customers spend a certain amount or purchase specific products. Those customers are encouraged to buy the items to receive the gift card and then encouraged to return to spend that card. Customers rarely spend the exact amount on the card itself. Therefore, a spending increase is all but given
Do you know how your business is performing online? If not, get your free business report now.
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