When trying to grow revenue, merchants frequently opt to invest in marketing campaigns. Yet while marketing efforts are likely to have a positive effect on sales volumes, they’re not guaranteed to change the amount that customers are actually spending per purchase. If your goal is to drive sales growth rapidly with minimal overhead costs, then implementing tactics to grow your average sale price is a great first step to take! Here’s how you can get started:
Research Your Existing Sales Patterns
Before making any sales decisions, it’s essential to have a thorough understanding of your current situation. Start with figuring out your average transaction by dividing your gross sales for a given period of time by the number of transactions. After that, you can move on to determining any other specific spending patterns, such as which days and times tend to result in the most sales and which employees are finding the most success. You’ll also want to identify how your employees currently interact with customers, and which of their behaviors are affecting the customer’s buying decisions.
Come Up With a Sales Target
Set a reasonable goal for how much you’d like your average sale to ring in at, so you can have a tangible way to measure success. With a specific number in mind, everyone on staff can keep their eye on the target and stay motivated to succeed.
Decide on a Plan of Action
Now’s the time to determine how you’re going to reach your goal. Here are 6 ideas to consider:
1. Train Employees to Upsell and Cross-Sell
Upselling is encouraging the customer to buy a comparable yet higher-end version, or to purchase additional features. Some examples are offering extra security protection on a laptop purchase, or promoting a car model that’s more premium than what the customer is interested in, but is still in line with their preferences.
Cross-selling involves recommending that the customer buy a related product or service. For example, a waiter can ask the customer if they want fries with their hamburger, or if they want to end their meal with dessert. In a clothing store, a salesperson can recommend a blouse that pairs well with the sweater that the customer is buying.
3. Offer Product/Service Bundles
Customers love to feel like they’re saving money. Combine similar products or services for a lower cost than it would be to buy them all separately, and the customer will feel motivated to take advantage of a good deal. For example, a spa can offer a combo manicure and pedicure, or a cafe can offer a special price for the purchase of both a coffee and a pastry.
4. Diversify Your Inventory
If the majority of your products are inexpensive, consider adding in more premium items. Alternatively, if your purchases often consist of one higher-end item, try offering some cheaper items that customers can supplement their purchase with.
5. Put Impulse Items at Checkout
Stores like T.J. Maxx have nailed this technique. Place eye-catching and/or inexpensive products by the checkout lines that will attract attention when your customers are waiting in line.
Gift cards are also a great item to display at checkout, especially during the holiday season when customers have gift ideas on their mind.
6. Motivate Customers to Spend More
Give your customers incentive to buy more by offering special promotions, like BOGO (buy one get one free), free shipping with large orders, or discounts like $25 off of purchases over $100.
Another way you can motivate consumers to spend more is by offering a loyalty program. Customers can earn points/rewards for specific challenges, such as by spending a certain amount or buying a specific item.
Whatever tactic(s) you choose, be sure to monitor your sales activity and communicate with your employees to see what’s working! To make this easier, you can utilize sales monitoring tools that are available with many POS systems.
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