Increasing your average order size is a way to increase your profits without increasing your marketing costs. Get your existing customers to buy more by using these six tips to increase your average sale.
Increased revenue can come where you least expect it: from your current customer base. While trying to attract new customers is a proven method of increasing sales, you can also do a good job of encouraging customers to buy more from you by increasing their average order size. Consider increasing your sales with the following methods.
Cross-selling is the process of offering deals that go with the product someone is buying. Want batteries to go with this electronic toy? How about a protective case for your new tablet? Websites often try to cross-sell by showing a list of items that people often buy alongside the item they just added to their cart. If you include this in your website, you can increase your sales. If you’re selling in a brick-and-mortar store, you can be assisted by knowledgeable sales staff. When sellers know your product inside and out, it becomes much easier for them to satisfy the buyer’s needs and offer other products that the person may want to purchase. You can also create displays that group such items together.
Upselling is the act of persuading people to buy something bigger and better than what they originally intended to buy. For example, if a person was shopping for a laptop, you could suggest that the person buy a laptop with more memory or a faster processing speed. When the customer is ready to buy, the extra price doesn’t always seem so high. Service plans or warranties are other examples of upsells. For additional protection, the buyer spends a little more.
With a limited-time offer, the customer feels pressure to make a quick purchase decision. Sometimes it’s a sale that catches her eye as she passes a store in the mall. Online, it can be a limited-time offer with a clock counting down the seconds until the offer expires. If it’s an item that a person has already considered purchasing, purchasing during the limited time offer is a no-brainer. Even if the offer is something she hasn’t considered, the pressure of not getting a good deal may push her to make the purchase.
Free shipping or shipping thresholds
Customers don’t like paying for shipping and handling. In fact, they may end up buying a little more than they intended if the extra purchase gets them free shipping. You can take advantage of this by offering free shipping or free shipping as a bonus on orders over a certain threshold. Not only can this help increase your average order size, but it can also win sales that you might have lost if you didn’t have this incentive.
Coupons with limited dates
The more often you can attract customers to your store, the more total sales you will get. One way to keep people coming back again and again is to offer coupons that are only valid at certain times. For example, you can send coupons that are valid for the first half of the month, as well as coupons that are valid only for the second half of the month. This works especially well if the coupon is valid for just one item rather than the entire purchase. The customer will want to return both times to use both coupons and will likely purchase a few additional items while in the store.
The more you pay, the more you save
You can also increase sales by increasing the amount of money a coupon is worth when a person spends more. For example, you could offer a $10 off coupon to those who spend $50 and a $25 off coupon to those who spend $100. Getting $25 off is a better deal and many people choose to buy more to reach the $100 threshold. This technique can work at different prices.
Refund for a future purchase
Another technique that stores use is to offer a “cash back” option, which is good for future purchases. For example, you could offer a customer a $10 off coupon for every $50 they spend at your store. Then these coupons can only be used for a specified period of time. This works well for the store in two ways. First, she can get a few extra things if she’s close to reaching the threshold for more cash. She then returns to the store another time to spend the “free” money, and will probably spend a little more while she’s there. Best of all, the customer feels like they are getting a great deal.
There are many things you can do to increase the average order size of your customers. However, different methods work best with different companies, so it’s always wise to try out different methods to see which one works best for you.