You’ve poured your blood, sweat, and tears into your business. Now, it’s time to reap the rewards. And one of the best ways to boost your bottom line and propel your business forward is to increase the purchase value per transaction. This article will walk you through seven actionable strategies to achieve this growth catalyst.
Why Bother with Purchase Value?
First things first, why is purchase value worth your attention? Well, imagine this scenario: You’ve worked hard to draw customers to your business. They’re willing to buy, they’re at the checkout — why not take this opportunity to maximize your profits?
One Harvard Business Review study reports that it can be up to 25 times more expensive to get a new customer than to retain an existing one [1]. This makes it pretty clear that working on your existing customers’ purchase value is a clever move. So, how do you do it? Let’s dive in.
Strategy #1: Bundle Your Offers
“Buy one, get one half off.” “Three for the price of two.” We’ve all been enticed by these deals. That’s bundling in action. Bundling is a powerful psychological strategy that makes customers feel they’re getting more bang for their buck, thereby increasing their spend.
Strategy #2: Introduce a Loyalty Program
Loyalty programs can work wonders for your purchase value. By rewarding customers for spending more, you’re providing a compelling reason for them to open their wallets. The top performing loyalty programs boost revenue from customers who use them by 15-25% annually. [2]
Strategy #3: Make Upselling and Cross-selling Your Best Friends
If you’ve ever bought a car or a burger, you’ve been upsold. The strategy is simple but effective: Encourage customers to buy more expensive items or add-ons. Meanwhile, cross-selling involves suggesting related or complementary items. These strategies increase purchase value and make your customers feel valued by offering them relevant products.
Strategy #4: Free Shipping – But Make It Conditional
We all love free shipping, but as a business owner, it can eat into your profits. The solution? Offer free shipping — but only once a certain purchase value has been reached. The National Retail Federation found that 75% of U.S. consumers expect free shipping, and almost 40% wouldn’t make a purchase if shipping wasn’t free [3]. A minimum spend threshold can boost your purchase value while keeping your customers happy.
Strategy #5: Capitalize on Limited-Time Offers
A countdown timer, a “limited stock” warning – nothing stirs up urgency like a limited-time offer. Seasonal sales, flash deals, and exclusive product launches can encourage customers to buy more, sooner. This drives up purchase value and creates an exciting shopping experience.
Strategy #6: Personalize, Personalize, Personalize
We all like to feel special. So why not make your customers feel like VIPs? Personalized offers and recommendations can increase both purchase value and customer satisfaction. Epsilon’s study found that 80% of consumers are more likely to buy from a brand that offers personalized experiences [4].
Strategy #7: Harness the Power of Technology
In our digital age, technology can be your secret weapon for increasing purchase value. Whether it’s AI-powered product recommendations, virtual reality experiences, or chatbot assistance, tech can enhance the shopping experience and guide customers towards higher-value purchases.
To Wrap It Up
Phew! That was a lot. But remember, you don’t need to implement all these strategies at once. Start small, test what works for your business, and adjust as you go. And remember: While increasing the purchase value per transaction is vital, it’s just as crucial to provide value to your customers. After all, happy customers are loyal customers — and they’re the ones who will keep coming back to drive your business forward.
Footnotes
[1] Harvard Business Review, The Value of Keeping the Right Customers, https://hbr.org/2014/10/the-value-of-keeping-the-right-customers
[2] Queue it, How effective are loyalty programs?, https://queue-it.com/blog/loyalty-program-statistics/#:~:text=The%20top%20performing%20loyalty%20programs,27%25%20of%20loyalty%20program%20members.
[3] Multichannelmerchant, NRF Study Finds 75% of U.S. Consumers Expect Free Shipping, https://multichannelmerchant.com/operations/nrf-study-finds-75-u-s-consumers-expect-free-shipping/#:~:text=The%20report%20found%20that%2075,and%20Industry%20Analysis%20Mark%20Mathews
[4] Destination CRM, Power of Personalization: How Brands Can Individualize Customer Experiences, https://www.destinationcrm.com/Articles/Web-Exclusives/Viewpoints/Power-of-Personalization-How-Brands-Can-Individualize-Customer-Experiences–156295.aspx#:~:text=New%20Epsilon%20research%20shows%20that,when%20that%20doesn’t%20happen.
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