This particular domain is one that every enterprise can attend to, as it is contingent upon existing clientele and customer flows currently purchasing your product or service.
Customers who have already pledged to buy from you represent a captive audience. The sole requirements are to effectively fulfil their principal requests and devise an offering that encourages them to expend a modest additional sum during the transaction.
Below are several strategies that you may be capable of implementing in your business forthwith.
Merchandising
Supermarkets are adept at this strategy. What items do they place in close proximity to the cashier? Indeed, many of us have succumbed to temptation on occasion.
Merchandising revolves around organising your store (or sales environment if you are not a retailer) to entice customers to make purchases. Borrow a strategy from the supermarkets by positioning small yet appealing items near your cash register or where customers are waiting. Ensure the rest of your store is attractively merchandised as well. Arrange complementary products in displays to encourage add-on sales.
For instance, books and bookmarks, pasta and sauces, clothing and accessories, shoes and socks, shirts and ties.
Utilise signage to draw customers' attention to special offers they may otherwise overlook. Signs should entice customers towards your products. Exercise caution, however, to avoid excessive signage, which can result in confusion and fail to encourage customers to make purchases.
You may discover that many of your suppliers possess merchandising materials. Product information sheets, useful tips, leaflets, displays, and signs are often readily available upon request. Employ these to spotlight specific products periodically. Assemble striking collections of these products to garner attention. Once more, location is paramount. Situate these special promotions where customers are likely to make impulsive selections or have time to examine the information.
Evaluate the efficacy of all your efforts in this domain. Certain merchandising concepts yield better results than others. Determine which ones are most effective and employ them consistently. However, do not neglect to frequently change displays. If customers frequent your store weekly, a promotion will lose its impact after one, or at most, two weeks. Substitute it with another to maintain momentum.
Even in the absence of a retail store, you can still harness these ideas to augment sales of your products or services. Display brochures, flyers, and leaflets in your reception area or wherever your customers may be. Employ signs to inform customers about new products or special promotions. 'Merchandise' your sales materials by showcasing companion products in your literature, emphasising the benefits that companion products offer to the primary product, promoting special or discounted items last (rather than first) to facilitate add-on sales rather than replacement ones, and advocating trial products – albeit subsequent to securing the principal sale.
Take care to avoid cluttering the area, as this can make doing business with you arduous.
Trial Products or Services
Everyone enjoys experimenting with new things, particularly when offered at a favourable price. Consider the products or services within your business that may be suitable for trial purposes.
Cosmetic companies frequently employ this approach. They assemble trial sizes of various products and sell them in a visually appealing kit. Additionally, they utilise the 'gift with purchase' concept, wherein customers must exceed a certain spending threshold to receive the gift. Typically, this threshold surpasses the average price of a single item, thus necessitating the purchase of two or more items to qualify for the 'gift'. Ensure that the gift offer represents excellent value; otherwise, customers may feel deceived and lose trust in your business.
Determine your average dollar sale and set the offer for purchases slightly above that amount. Consequently, customers must purchase more than they ordinarily would to qualify for the offer.
If you are struggling to identify suitable trial items or believe that your products are incompatible with trial sizes (e.g., clothing, where half a sock would be an impractical trial), keep in mind that you are not limited to using your own products. Seek out businesses with complementary products or services and utilise their offerings as trial items or gifts.
Frequent Buyer
Implemented effectively, this strategy can increase both the frequency of customer purchases and the average value of each sale. One effective approach is to print “frequent buyer” cards with small squares on the back, and stamp the card each time a customer makes a purchase. Once all squares are filled, offer the client a special prize as a reward.
To maximise the benefits of this program, it is advisable to set the minimum purchase threshold for receiving a stamp slightly above the average value of each sale.
It is worth noting that this strategy is not limited to retail businesses, as movie theatres, restaurants, and airlines have successfully implemented it as well. Furthermore, manufacturers, wholesalers, and service businesses can also adopt this approach with relative ease. For businesses that offer products or services that are regularly used, collaboration with complementary businesses to offer rewards for using the services of the “group” is a viable option.
Cross-Selling
The ubiquitous phrase "Would you like some fries with that?" is well-known as a classic example of cross-selling, made famous by McDonald's. However, many are unaware of the significant impact this one line had on their sales figures in the year it was introduced, generating over one billion dollars in additional revenue. This sales tactic has now become a commonplace practice across all fast-food chains, with KFC also asking customers if they would like additional items such as corn, drinks, or coleslaw to their order.
Although not everyone responds positively to these offers, even if one in five, ten, or twenty customers accept, the resulting impact on turnover can be significant. Car retailers also employ cross-selling techniques by offering customers additional services, such as different wheels, paint protection, or extended warranties.
If businesses such as these can successfully use cross-selling to increase sales, then it follows that other industries can adopt this tactic as well. In fact, the most successful salespeople across all industries employ cross-selling techniques consistently. This process begins with an understanding of both the customer's needs and the products or services that are being offered.
For service-based businesses, cross-selling can be just as effective, and it can be implemented quickly. For example, if a lawyer is handling a client's property purchase or settlement, they may discuss the importance of protecting the newly acquired property. Instead of simply suggesting that the client needs a will, they could frame the discussion by saying, "In order to ensure that your assets are fully protected, I will prepare a will for you. It will be ready for you to sign in two days. Can you come by and sign it on Monday?" While some clients may already have a will, others may respond positively to this suggestion, resulting in a sale that may not have otherwise occurred.
Manufacturers can also employ cross-selling techniques by offering spare parts, service or maintenance agreements, or minor add-on enhancements for their products. Understanding the customer's use of the product can help identify unique opportunities to offer complementary products or services that will meet their needs.
If cross-selling is a new concept, it may take some time to determine which words and approaches are most effective. Testing different methods can help determine which ones work best, resulting in better customer response rates. Once a successful approach has been identified, it should be implemented consistently with each customer.
Using Demonstrations/Lessons
Demonstrations are a common marketing strategy employed in a variety of settings, including retail stores, shopping centres, malls, and shows. Their popularity can be attributed to their effectiveness in generating sales. As the saying goes, a picture is worth a thousand words, and demonstrations tap into the senses, which is a powerful motivator for customers to make a purchase. Food companies, for example, often cook and serve their products in-store to appeal to multiple senses and stimulate customer interest.
The home shopping networks also leverage demonstrations to sell their products. Rather than simply describing the product, they demonstrate how it is used, which allows customers to see and touch the product in action, creating a more tangible and engaging buying experience. This approach is effective because people like to be involved in the buying decision-making process.
Demonstrations can be employed in various settings, and their implementation will depend on the nature of the product or service being offered. To increase the average dollar sale, businesses can use demonstrations in their retail stores. By selecting a location within the store that provides ample space for both customers and a product display, businesses can showcase companion items that enhance the product and demonstrate how they work together.
For businesses without a physical store, such as those with salespeople on the road, demonstrations can be an effective selling tool. Salespeople can demonstrate the product or service being offered, as well as any add-ons or enhancements that may benefit the customer, including those not offered by the business.
For instance, a landscaping supply company may host "learn how to" days that attract as many as 2,500 potential customers. This event provides an opportunity to showcase a wide range of products, including pavers, road bases, plants, and woodchips, and offer demonstrations that teach customers how to use them effectively. By leveraging demonstrations, businesses can create engaging buying experiences that drive sales and increase customer satisfaction.
Making it easy to buy!
One can enhance the value of the average transaction by simplifying the process of conducting business with your customers. For establishments with physical stores, it is crucial to consider the ease with which customers can transport their purchases while browsing. Are trolleys or shopping baskets available, and are customers utilising them?
Consider the case of supermarkets. Conduct an examination of your local supermarket to assess the store layout, product presentation, and the reasoning behind their practices. Trolleys provide an illustrative example. Their primary function is evident: to carry purchases. However, there is an additional rationale for their prominence. By supplying large trolleys, customers are encouraged to fill them, frequently resulting in purchases beyond their initial shopping lists.
Your business may have customers who typically purchase only a few items. If you believe trolleys or shopping baskets are unnecessary, reconsider this stance. By facilitating the ease of carrying items, customers may be more inclined to acquire additional products. Reflect on the implications of such a change on your average transaction value.
Contemplate the optimal placement and distribution of trolleys or baskets. Should they be readily accessible or distributed by staff? Would it be beneficial to have team members assist customers with carrying their purchases? The optimal approach may vary; trial both methods to ascertain which is most effective for your business.
For businesses without a physical store, it is still possible to encourage customers to make additional purchases. Ensure that order forms are designed with supplementary items in mind. Promote further acquisitions by offering discounts, complimentary delivery, extended warranties, or gifts with purchase, ensuring that these incentives apply to amounts exceeding your average transaction value.
Service-based businesses can similarly entice customers to engage with supplementary services by offering discounted rates or additional benefits upon initial purchase.
Testing
As with any marketing strategy, there is no definitive blueprint for success in business or guaranteed effectiveness. Therefore, it is important to continually measure, test, and re-evaluate strategies. Consistent evaluation is necessary since market trends change frequently, and an effective strategy today may not yield the same results tomorrow.
For example, a frequent buyer club may require a minimum spend of $20, but if the average dollar sale increases to $30 over the years, this strategy may become ineffective. Hence, it is crucial to assess the effectiveness of a campaign before implementation.
To initiate the implementation of strategies aimed at increasing average dollar sales, it is recommended to create an action plan based on a comprehensive checklist. This checklist may include the following points:
- Identify products or services that can be marketed to increase average sales
- Determine the types of signs that can be used around the business premises to encourage additional purchases
- Establish methods for measuring the effectiveness of implemented strategies
- Decide on the frequency of changes to marketing strategies to keep up with market trends
- Consider implementing a frequent buyer program that entices customers to make additional purchases
- Determine what rewards can be offered to customers as incentives for making additional purchases
- Identify potential partner businesses that can offer rewards to regular buyers
- Implement systems for cross-selling complementary products or services
- Plan demonstrations that showcase products or services
- Develop marketing strategies that promote the benefits of the products or services offered
- Evaluate ways to simplify the buying process for customers
- Establish systems to monitor the effectiveness of each strategy implemented.

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Information contained in this document constitutes general comments only for the purposes of education, and is not intended to constitute or convey specific advice. Clients should not act solely on the basis of the material contained in this document. Also, be aware that changes in relevant legislation may occur following publication of this document. Therefore, we recommend that formal advice be obtained before taking any action on matters covered by this document. This document is issued as a guide for clients only, and for their private information. Therefore, it should be regarded as confidential, and should not be made available to any other person without our prior written approval.