Growing your business - increase transaction value
There are hundreds of ways to encourage your customers to spend more money with you each time they buy. The key is to develop some strategies that add value to the transaction rather than simply increase the price.
Here are some universal ways to encourage a higher spend:
1. Upskill your team.
Your team needs to be able to educate your customers on the value of your products or services. The first sale is to yourself. They also need to readily identify the right upsells for customers and be able to cross-sell products naturally and effectively. They also (counterintuitively!) need to recognise when they must down sell so they don't lose a sale, by giving the customer options (the choice of yeses). Investing in training your sales team well will pay dividends.
2. Offer more pricing and payment options.
Proposals with options, easy finance and payment terms, and simple service contracts help to remove the barriers to doing business together.
3. Educate customers.
Live in-store promotions, video tours, and web content are all ways to highlight what's special about your products or services.
4. Provide add-on value.
Four for the price of three, free delivery with a minimum spend, companion selling, bundled offerings with a discount, and bulk buy deals are some of the ways you can get add-on sales and give your customers that 'I got great value' feeling.
5. Be strategic.
Position your offering as higher quality, then increase prices or drop cheaper product options.
6. Build rapport and develop relationships with customers.
Create an emotional connection with your business. Send freebies to your best customers, invite them to special events, and give them VIP specials. The top 20% of your customers may end up contributing 80% of your targeted increase in average spend.
To set a goal to increase your transaction value, you first need to know your current average transaction value. To calculate this, divide your sales value over a period (excluding GST) by the number of invoices raised during that period. Now you can set a goal for improvement. Don't forget to monitor this to ensure you're on track to achieve your goal.
Want to chat about your growth plans? Contact us and we can help you achieve your goals. 03 474 0475