Influence or Accept?
Mike Foster
Business Mentor & Coach | Fuelling ideas and sparking plans for a better business
Can we make it easier to scale and grow our business?? For sure!
One consideration to improve our gross margin is by increasing each sale value which may mean changing our customer or the mix of our offering.
The objective of your marketing and positioning is to influence your Customer Make Up and Average Order value rather than just accept what it gives you.
After all I am a firm believer that we will primarily get what we market.
In this article I want to share some thoughts around how to actively shape your customer base and increase your average order value for long-term growth.
As a business owner, you likely spend a great deal of time thinking about your customer base and how to attract more sales. However, it’s important to go beyond just accepting the customers that come your way and instead take deliberate steps to shape your ideal customer profile and increase your average order value (AOV).
Many businesses fall into the trap of serving whoever shows up, rather than strategically building a customer base that’s aligned with their long-term goals. In the same way, they accept a static AOV without recognising that with the right approach, this can be influenced and significantly improved.
If we remain in a red ocean, doing what we and our competitors have always done then we often only see change if get lucky. However if we find our Blue Ocean space then things can be easier.
So, how do you take control of these crucial elements? Here’s some thoughts to help you shape your customer base and increase AOV, creating a more profitable and sustainable business model.
1. Define Your Ideal Customer Profile
One of the first steps in this process is having a clear understanding of your ideal customer. What qualities do they possess? What are their pain points, desires, and behaviours? Too many businesses cast a wide net, hoping to attract anyone and everyone. However, by focusing on your ideal customer and tailoring your marketing efforts toward them, you can build a stronger, more loyal customer base.
The more precisely you define your customer, the easier it is to shape your messaging and offerings to attract them. Consider demographics, business challenges, decision-making processes, and even personality types.
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2. Tailor Your Marketing to Speak Directly to This Audience
Now that you’ve defined your ideal customer, make sure your marketing speaks directly to them. This is where many businesses go wrong by trying to appeal to everyone. If your message is too broad, you’ll attract a mixed audience, and your ideal customer may be lost in the crowd. Instead, create content that resonates with their specific challenges and desires.
3. Offer Problem Based Solutions, Value-Driven Upsells and Cross-Sells
Increasing AOV doesn’t mean aggressively pushing additional products or services. Although you could, it’s not just about increasing your prices. It’s about providing value that complements the customer’s journey. Differentiating what your competitors offer. What does your ideal customer need next? What would naturally enhance their current purchase?
4. Segment and Personalise
Every customer journey is different, and the more you personalise their experience, the better your chances of increasing both their satisfaction and your AOV. By segmenting your customer base, you can create tailored experiences that resonate with specific needs.
5. Build Trust and Loyalty for Repeat Business
A one-time purchase is great, but repeat business is where the real value lies. As part of the after sale experience how do you create loyalty and advocacy. By building trust with your ideal customers, you can significantly increase lifetime value. This is where clear communication, consistency, and delivering on promises come into play.
Focus on exceeding expectations and delivering exceptional value. Whether it's through tailored insights, personalised advice, or consistent support, when your customers see you as a crucial part of their business success, they will come back time and again.
Finally, Measure, Adapt, and Optimise, and remember that this isn’t a one-time effort. Shaping your customer base and increasing AOV is an ongoing process. Regularly measure the effectiveness of your strategies, adapt based on feedback, and continually optimise your offerings.
It’s essential to track customer acquisition, retention, and the value of each transaction. This data provides invaluable insights into where you’re excelling and where there’s room for improvement. The more data you gather, the more precise your future marketing efforts will be.
Don’t leave your customer base and AOV to chance. By taking an intentional, strategic approach, you can attract the right customers—those who will bring the most value to your business—and simultaneously increase the average value of their transactions.
By focusing on these strategies, you can shape your business to be more profitable and sustainable in the long run.