We are sure that you have been to McDonalds at least once in your life. Have they ever tried offering you some extra fries on the side or convinced you for getting a combo meal instead? Welcome to the world of retail. People have tried and tested various methods to increase their store's Average Transaction Value (ATV). Some have failed, some succeeded in sky-rocketing their sale figures. Few changed their staffing while others adopted billing software for retail. We have summed up the techniques that can surely help you increase your store's Average Transaction Value.
Tips to Increase your Retail Store Transaction Value
Let's check them out.
Try Up-selling and Cross-selling
Up-selling is trying to sell a product of a higher value than the customer had originally planned. Suppose you have decided to buy a car. You go to a store and ask for a particular car. But instead, the salesperson pitches you another model which you didn't plan for and which is relatively higher in price. The salesperson tells you how good the new model is. This is called up-selling.
Cross-selling is selling an additional product which complements the product that the customer has originally planned to purchase. For example, suppose you go to a store for buying a pair of pants and the salesperson tries to convince you to buy a shirt with those pants well, that is called cross-selling.
Like in Wendy's, when they try to persuade you for upgrading your regular fries to a large, that is up-selling. And when they try to convince you for having a combo meal, instead of just a burger, that is called cross-selling. And people usually go for it because it seems economical to go for a larger pack because they think it is value for money. “We ask the cashiers to be laser specific when trying to sell an item,” Wendy’s FourCrown’s Schmitz says. “Instead of asking the customer if they want a drink, ask them if they want an ice-cold or coke. Or, instead of asking the customer if they want anything else, ask them if they want a plate of fries?”
Removing options is as good as adding them. Customers who have a choice between “yes” and “no” usually say “no.” Try rephrasing the question as a choice between two options., m
Incorporate Promotions and Sales
Bundle discount or BOGO, you can try anything that suits your numbers. Product discounts are given on a particular item, bundle discounts are given when you buy a particular number of products or spend a particular sum of amount, and BOGO discounts are ‘buy one get one discounts’.
Customers are surely going to get excited if they are offered some discount. It's on you how you handle them when the crowd starts coming. A bad experience can make you lose customers as well. So, do use billing software for retail like Invoay retail POS to handle orders when the rush begins, and make the cumbersome checkout process smoother. Vero Moda and Only goes for a flat 60% off every year at their retail stores. They receive a crazy amount of crowd that day. The footfall starts from 6 am in the morning. Don't believe it? Attend their sales and you will find out yourselves. Similarly, brands like Puma and Reebok give sales on national or religious events to attract customers to their stores.
Use Loyalty Program for Your Leverage
Loyalty programs might not give an instant boost, but it will be beneficial in generating profits in the long run. Big brands like Shopper's Stop and Starbucks use it to increase their purchase value.
These kinds of perks encourage customers to stay loyal and connected to the brand. Some of the software like Invoay Retail POS software will not just help you with offline and online billing at your store but also help you with managing loyalty programs. Invoay retail POS is designed for todays’ scenario when retail stores are finding new technologies to attract customers. It will have all the customer's information and shopping pattern recorded. You can use this information to give them relevant offers. You can further use such software for merchandise management and facilitate communication through different channels.
Rearrange the Merchandising Inside Your Store
Try and rearrange the merchandising of your store by keeping small and impulse purchases near the billing counter. This will give an urge to the customers to buy them because they see those things as new and exciting. This is the thing with human psychology. Buying something which is fresh and different give the customers a sense of joy and pleasure. So, keeping new and inexpensive products around the check-out counter can be a great practice to incorporate. 40% of customers accepted that they end up spending more than they had originally planned. A great example for this point will be all the Forever 21 outlets. They strategically place all their accessories near the billing section because when people wait in line, they can always have an option to check them out and make last-minute purchases.
The Japanese brand Miniso, also has an extremely attractive store with their products very thoughtfully placed all over the space. Their customers spend a lot of time just while going through their products and enjoying the whole experience. It is on you how you want to utilize the space that you have.
Include High-Priced Items
This point works specially for quick service businesses like cafes and restaurants. Adding a few high-priced items to your menu make the rest of the items relatively cheaper. Your high-priced items may not sell that often. But those will give the customers an impression of saving more, while they are actually spending on the relatively cheaper priced products in the store. It's a part of a customer's psychology. They tend to buy more items when they see them available at a lower cost compared to the rest.
Accessorize is one such brand that has super expensive bags. The store also has other accessories which are available at a fairly decent price. But since the cost of their bags are so high, all other items seem nominal in front of them. This gives an illusion to the customer that they are making the right choice by buying the rest of the items.
Maintain a Strong Online Presence
Ever since the internet has blossomed, people have started to look for products online, before coming to the retail store for making a purchase. So, make sure your store has a website or an app which has all the products listed before the customers beforehand. In fact, 71% of customers check online to find the best prices, to read customer reviews and how the product looks. This will help them compare and making up their minds about purchasing the product. Your website or app should be clean and easy to access. This would give them a taste of what the actual in-store experience would be like. You can also provide them the option of buying the product online by giving them certain perks and discounts.
A great example in this category would be Zara. They have an awesome website where people can check out their latest collections before visiting the store. They can get a second opinion on a product from another customer which will help them shape their buying decisions. Zara successfully achieve a 41% increase in their online sales last year.
Adopt Multiple Methods for Payments
Different people prefer different methods for paying for their products. Customers might carry only cash or card or online apps to pay for their products. You don't want to lose out on them just because you don't have their method of payment, right? You have to ready to accept all kinds of payments. Make sure that you have enough cash, that you accept cards and that you have a working billing software for retail.
Include Post Purchase Communication
Now when you've generated a new customer, it is important to interact with them after their purchase and ensure repeat visits. It is important that you have a proper system at the point of transaction to get as much information about the customer as you can. Most billing software for retail lets you build your customer base by saving their email address, contact number and other information. Post-purchase communications can be in person, on phone, or over email. You can use this communication to know and influence the feelings the customer after their purchase.
Dollar Shave Clubs retains its customers through their distinct email receipts. The email greets them with text saying "you'll fit right in". This gives the customers a feeling of acceptance and positivity. And the customer is bound to return the next time!
Now you have all the hacks to Increase Your Retail Store’s Average Transaction Value. Begin implementing these simple steps and notice the difference yourself. Cheers!