Increasing your order value or average sale is one of the many methods you can adopt if you want to increase the rate of growth of your business. You need to enlighten and inform your clients about the products and services you offer once they come to you for assurance in this regard. Your clients are not aware of all the products you have. By informing them about these products, they may end up buying more than what they had in mind initially. You spent so much to win them to your outlet; it is only reasonable to make them spend as much as you can get out of them while they are here.
You will learn about some strategies below that can help to increase sales in your outlet. However, you need to know your numbers before you venture into any of the processes listed below. When calculating the average value of the sales you have generated, you can divide the total number of sales you have generated for that day by the total number of clients that bought one product or the other from your outlet. It may also be helpful to calculate your average sales per day in a week, average sales for each marketing campaign, average sales from each employee and average sales for each hour. After this, you can go ahead to develop a strategy that can be used in lifting the results. In this situation, you can decide to put together a special offer targeted at any day of the week in which you experience the last number of sales.
You can apply any of the methods below to increase transaction value or average sales in your outlet.
Add-on sale or Cross selling
One of the outstanding outlets practicing cross-selling is MacDonald. When the client shows up at your doorstep, you can ask if they would want to add any product or service related to the one they come for originally, or you could introduce something new to them that you think they may need. To make things very easy for yourself, you can create a list of related products and introduce these to them as the clients come around to make a purchase.
Up-selling means increasing the monetary value of the items you have on sale. This can be easily done when certain clients show up at your door; it may, however, be more difficult when you are dealing with price conscious clients. You can go for the base and deluxe standards of the same product; while the base products are reserved for budget conscious clients, the standard ones can be introduced to those clients looking for top quality products.
Batching or Bundling
You can create more value for your customers and make your products to look more attractive if you bundle or batch several products together in a package. Look for items that will cost less in a package than when they are purchased individually and bundle such items together. Be that as it may, make sure that the items you batch together are related to one another.
Strategically placing point-of-sale displays, presentations and signage around your business can go a long way in increasing the average sales of your products. Many supermarkets use this strategy to promote their products by displaying special items at their check out areas; this can trigger the customer to ask for these items. You can further raise the interest of the customers by displaying product samples, brochures or testimonies in conspicuous places.
Pricing, Discounts, and Margins
The profit margin on each of the products you have on sale must be known before you decide to batch such products together. This may be the right time to stock new products with higher profit margin and ticket prices on your shelves. No need to sell many of such items since they have increased profit margin. This may also be the right time to stop stocking low margin, low priced items.
Set minimum order for bonus or free shipping
Providing your customers with various incentives can help to increase your average order value when the customer spends a given minimum amount at your outlet. You can give them a bonus or gift when they buy a particular quantity or provide them with free shipping.
You can include customer reward or loyalty programs as part of your marketing strategy if you are selling items like razors, take away coffee, stationeries or any other consumable item. This strategy is very useful in retaining your customers and keeping them faithful to your brand.