When someone buys from your company, you feel like you’ve done your job as a marketer. But don’t spend too much time patting yourself on the back. Because there are always things that you can do to improve the business. And increasing the value of each customer is one of them.
When you create higher value conversions, you are increasing your company’s revenue without necessarily finding new customers. That’s a big win!
So here are three tips for creating higher value conversions:
- Add-on Products. You can do this in a number of ways. First, you can take a page from Amazon’s book and create a step in the checkout process to highlight other products you offer that a customer might like. The “customers who bought this also bought this” has been shown to increase the average value of each purchase. You can also use what you know about your customers to create and launch new, complimentary products. For example, if you sell dog food, you might also start selling leashes.
- Offers with Minimums. Special offers are a great way to acquire new customers, but offers can also be used to increase the average size of your orders. Free shipping on orders over $100 and buy one get one half off are two popular concepts in this arena. If you know the average price of each order, you can set minimums or create offers specifically to increase that number. For example, if your average order is $40, try a free shipping offer for every order over $50.
- Smarter Pricing. Experienced marketers know that pricing can make all the difference. If you’re able to identify those customers who would pay more for something, you can affectively raise pricing without decreasing the number of purchases. For example, airlines allow you to pay more for faster boarding or more leg room. In doing so, they cater to both the customers who shop on price as well as those that will gladly spend more for higher quality. You can do the same by identifying a few key elements of your product or service that are worth more to some customers.
By increasing the average size of each order, you generate more revenue for your company on the same number of customers. That goes a long way towards increasing profits and accelerating growth.