Avg. Reading Time - 2:30 mins
When I am asked “how can we increase the sales?”, often the business is looking at increasing the number of customers. But a quick and easy way to increase profits is to look at the average transaction size.
After all, an increase in the number of customers carries with it several increases in costs. Not only is there the obvious increase in acquisition costs but you will also incur additional customer service and support costs, not to mention the additional fulfilment costs to your business.
By increasing the average transaction value, you will see an increase in costs but it will be a fraction of that incurred when purely focussing on increasing the number of customers/clients.
You will already be supporting the same number of customers, you will already have acquisition costs and you will already be fulfilling on your orders/contracts.
Now you are probably expecting the same old advice…
"Introduce cross-sells and upsells, bundle products together with a discount on the bundle etc etc..."
But here are three strategies I regularly suggest to my consultancy clients to bump up their average order value (I admit some are a variation on the theme, but by thinking outside the box we can really supercharge the results!).
This first strategy involves analysing your current and past sales and is a variation on finding more of your best clients. Targeting geographically provides you with a quick and easy way to reach more of your ideal client who are most likely to buy more per transaction.
How do you fulfil your orders? I am guessing if you are in ecommerce, you may send out the package with a simple invoice sheet and that’s it. Or if you are on top of your game, you may include a voucher for the next purchase the customer makes.
What if you were to also provide a short ‘how to’ guide with your ecommerce product, showing your customer additional ways and hacks on using your product? How about a short “why us?” sheet explaining why you are such a great company and most importantly a sheet with complimentary products to the one the client has just bought.
Or maybe you have a service based business and don’t send anything at all? I mean surely your time and service is enough, right?
What if you gave the client a personalised “onboarding pack” explaining all the additional benefits you will offer with the service, that they probably don’t know about. With a “why us?” document and a catalogue of additional/complimentary services that would be of interest to the client.
Now I know, this isn’t increasing the monetary value of the first transaction your client/customer made with you but when they receive your “impact” material, several things are going to happen…
Firstly, your customer will feel that you are genuinely a company that cares about them. You are, in effect, telling them that they are special and deserving of the extra attention you have given to them.
Secondly you are letting them know what else you have available that they may like to buy, encouraging a second and larger transaction.
Thirdly you are exceeding their expectations, reducing buyer’s remorse and leaving them with a great experience.
All for the nominal additional cost of some printing and perhaps slightly more shipping.
This last method is a slight twist on the old ‘bundle your products together’. By using a satisfaction survey, you have the chance to slip in a question asking your current (best) clients, “what else do you need with our product/service?” Or “What would help you even more with our product/service?”.
Once you have collated the answers, your best clients will have told you exactly what other items they would have purchased when buying… if only they had been offered them.
Not everyone will take you up on the offer, but the chances of them taking up an up/cross sell or bundle, will be vastly increased. Simply put, you will be offering them exactly what they want, not what you think they might like.
From the results of the survey, you only need to offer what they asked for to new purchasers.
If you don’t have what they want as a product or service that you offer, you can quickly develop a new product/service line OR if it makes more business sense, partner with a supplier who can offer the additional product/service. Allow them to supply you or fulfil directly (dependent on your business model) and claim a commission or margin on each sale.
These are just a few examples I have used with consultancy clients, but it is by no means an exhaustive list. I will post more ideas you can use in the future but what other ideas can you think of? You just need to think a little outside the box to give yourself a real edge and claim more money per transaction!