One best way to enhance growth in your business bottom line is to increase your customer spending. You can achieve this by leveraging marketing and sales strategies such as cross and upselling. Upselling can be a great customer delight when done correctly and can translate to long-term growth when combined with other good customer loyalty. It doesn’t matter so much if you are an online or brick-and-mortar business – it is vital to know your customers want to create revenue opportunities. Here are the best ways to boost your business average transaction value.
Appreciate where your ATV comes from
Your business average transaction value is your sales over a specified period over your total transaction in the same period, fluctuating from time to time. For instance, retail food businesses can experience high ATV during the weekends when many people tend to buy or shop in groups. However, your ATV isn’t about how many customers you serve within the period but how well you deal with every customer. For example, it can be hard to upsell if you have a busy or crowded shop, especially when other customers are waiting. You can consider redesigning your website to trigger last-minute additions to a shopping basket for an online business.
Upselling and cross-selling
Your sales teams are the best tools for sales-related tasks. Their relationship with shoppers and customers can harm or improve your customer experience, which is key for growing your business. Therefore, it is essential to equip your team with the right skills and tools to upsell and cross to every potential customer. While cross-selling involves adding a different yet typically related product to a sale, upselling considers convincing a client to upgrade on an item they intended to purchase. These two approaches have a common goal – to appreciate client wants and needs to educate them on the available solutions.
Offer flexible payment terms
It is easy to feel for your customer when they can’t seem to meet payments. Hearing their plea for flexible payment can be hard to enforce your tough, upfront payments. Unfortunately, you can’t get personal with business, and your business survival depends on how you can boost your sales. Studies have shown that many shoppers abandoned shopping carts before checkout due to price points. However, flexible payment options can reduce the number of abandoned carts, create more leads, increase the number that converts to sales, and enhance customer loyalty and retention.
Offer bulk purchase incentive
You want to increase the number of things your client buys regularly. For this reason, you should offer an appealing and beneficially award for your customers that buy in bulk either month, quarterly, or annually. Your customers who value this extra incentive will likely join the program, boosting your average transaction value.
Find the right vendor management strategy
Learn how to transform your procurement operation from a simple purchasing function to a strategic business function that enhances quality and profitability. Expert advice, techniques, and tactics are available, so keep this in mind. It is best to utilize the best strategies to monitor your vendors and continuously enhance performance to deliver superior products and services. While vendor management can seem complex, appraisal management software can streamline business operations, reduce cost, and improve quality.
Train your staff
This may sound obvious, but not all your salespersons are experienced and driven sellers. However, understanding your sales team’s ATV knowledge and its positive contribution to your business can help you find transformative ways to help the process. Every business needs a proven service procedure to execute with every, irrespective of your business type. Find a metric that is easy to understand to initiate a conversation with your sales staff. This is excellent for maintaining focus to improve your average transaction value.
Get your point-of-sale reports
There is an average transaction value report in every point-of-sale system. A good POS system should provide a comprehensive report section to help you find individual ATV reports on your staff and stores. You want to become familiar with these reports and analyze them each day to improve your business ATV.
Exploit merchandising to your advantage
How you layout your merchandise can influence purchase value. You can display items that trigger impulse buying near your register. However, make sure these products are built around urgency, value, and excitement among your customers. To do this effectively, display your items in a way that provokes customers to check them while waiting to be checked out. It can be hard to avoid buying a pocket-friendly item you were eyeing earlier but couldn’t afford after selecting your full-size products in the shop.
Recognize and reward hardworking staff
After identifying your upsells, you want to train your staff to push for excellence by running competitions among your working teams. For instance, you can recognize your best upsellers every month and reward those who appear consecutively for the exceptional performance. Everyone enjoys a bit of recognition and reward for their efforts, and you cannot underrate the power of a simple thank you statement. Recognizing your employees’ efforts is a way of telling your staff you value their efforts and contribution to team success. This is key for business growth and change as employees build some sense of job security to motive them to continue working hard.
Provide free shipping on unavailable products
Offering free delivery on unavailable items in your store is a simple approach for boosting your clients’ purchase value and guaranteeing that you don’t miss out on a sale or a part of a sale simply because you can’t physically provide the item. This is now a common approach by many businesses recently. For example, you can order a pair of jeans for your client if you don’t have, let’s say, their size or a particular brand and have it delivered to their home. However, this can be a burden on your budget.
For a small business, you always want to find ways to maximize your sales and revenue, and a significant part of achieving that is to boost your average transaction value. While this may sound intimidating, the tips mentioned above should help you achieve just that.