Secrets of Boosting Average Revenue Per Customer

Hi friends, welcome to the 7th part of ‘SalesHack’ series and today we will learn the ways to generate more average sales per customers. Let’s see them now!

Increase your average transaction size

There are multiple ways of increasing the average transaction size for each customer — include:

• Cross-selling:

This is the act of attaching other services or products from your business at the checkout stage for each customer. It is not meant to replace the main product; rather, the new offer or product complements the main purchase.

For example, while a customer is paying for a new domain name and hosting privileges, cross-selling can be used to include an SSL certificate (which is necessary) or a personalized email service. This leaves the customer no choice but to take the extra offer, which increases the transaction size and revenue for company.

Retail giants such as Amazon and eBay regularly boost their revenue by using this technique at the end of a customer’s product purchase.

• Up-selling:

Up-selling is a marketing technique that involves pushing customers to go for a more expensive package or offer, or promising more value. A marketer or salesperson can influence a customer into buying the latest version of an item instead of the less-expensive current model by highlighting the new features on the latest version and displaying the latest product pages.

Up-selling might sound selfish, but at the end, you’ll have happier, more satisfied customers. According to sales guru Jeffrey Gitomer, “Up-selling helps your customers win since you’re delivering more value.”

This technique is often used by SaaS companies, such as Buffer, Godaddy and other brands offering consumables.

• Minimum Purchase Size:

Simply, increasing the number of purchase unit per customer would increase your revenue, remember this technique works for certain industries only. Making customers buy more than one product per transaction in exchange for free shipping or a gift card would increase customer spending.

Simply changing your product or service mix could result in an increase in customer purchase per transaction, this technique requires creativity and split-testing to determine what works for your business. Subtracting or adding to your present business offering can help grow your business size.

Increase the Frequency That They Buy

Increasing the frequency that customers buy your products can also increase the average revenue per customers. Techniques for implementing this step include:

• Create a periodic sales challenges or giveaways:

The sales and communication must run running periodic sales challenges and giveaways with huge discounts. This would amount to a recurring revenue for your business on a large scale. As we are witnessing now, businesses in the ecommerce niche could run weekly or monthly discounts sales to increase revenue and discard old stock.

Bonus 1: use psychological pricing strategies such as charm pricing (adding Rs 99), use prices with fewer syllables.

Bonus 2: Train the sales team to sell the most expensive packages or plan first.

Raise your prices

If you've been in business for a while, don't be afraid to bump up your prices by 5 or 10 percent. Most customers won't care and you'll increase your margins, so a few lost customers won't make a difference.

By using tactics like these to maximize every transaction, you help keep the cash flowing while you're getting your business off the ground. Later on, these same strategies can develop your flight plan for generating peak profits. Master the art of supersizing your sales early, and it will pay off many times over.

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(References: entrepreneur.com, business.com)