How can we increase the transaction value without increasing the price?
The fifth way to grow your business is to encourage your customers to spend more money with you each time they buy.
There are hundreds of ways to do this. 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 without increasing the price.
1. Upskill your team.
Your team needs to be able to show your customers the value of your products or services. 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.
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, 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. 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!
If you’d like more information, don’t miss out our next education workshop, 7 Ways to Grow Your Business. You will identify potential areas for profit improvement, learn vital business growth strategies and understand how you can easily apply them to your business.
Tickets for this high value workshop are selling fast, so register now to avoid disappointment.
"Business is all about solving people's problems - at a profit." - Paul Marsden