What businesses don’t do to increase revenue: developing unique products, reducing the cost of goods, purchasing new equipment for production. However, if there is no money and time for such steps, but you want to increase revenue, start working with the average check indicator. In the article, experts from the agency “Precisely.” explained: what is the average check, how to calculate and increase it.
What is the average bill and why should it be calculated?
The average check is the amount a company receives on average from one sale. In marketing, it is called AOV (average order value).
The average bill helps:
adjust the company’s positioning;
forecast income;
set up pricing correctly;
evaluate the work of the staff;
determine the effectiveness of marketing how to build phone number list and individual advertising campaigns;
track seasonality.
Working with the average check helps the company keep its finger on the pulse, but it is necessary to monitor the indicators dynamically. A one-time calculation is of no value, and therefore the average check is calculated by days, weeks, months or quarters. It is also important to track it after implementing changes in the business.
For example, a chain confectionery developed a new motivation system and began training salespeople. A month later, the figures were compared with the average check of previous periods. If they grew, then the new rules were working.
How to calculate the average bill
To calculate the average check, the following indicators are used: the number of sales and revenue for a certain period. The calculation formula looks like this:
When calculating the average check, it is important to take into account several factors:
In some areas, the average check amount changes depending on the season or day of the week. For example, in March, the AOV indicators of tire fitting will be higher than in other periods.
In stores with a wide range of products, it is necessary to calculate not only the overall average bill, but also to calculate it separately for each category of goods. This way, you can understand the presence of seasonality in different categories and their popularity.
If a business offers services to private and corporate clients, it is necessary to work with the average bill separately.
Tools for increasing the average check
Even a slight increase in the average cmmc 2.0 quick-start guide for defense contractors check in sales helps to increase profits. Let’s say a coffee shop makes 2,000 sales per month and has an average check of 200 rubles. Revenue is 400,000 rubles. If you increase AOV by 30 rubles, then revenue will already be 460,000 rubles.
There are many ways to increase the average bill, but we have identified 10 of the most effective. These methods will suit any business, regardless of the goods or services sold.
Working out the roles of goods
Each product in the store should have its own role. There are five of them:
Main . These are the goods that attract customers to the store. They make up to 60% of the entire assortment. The markups on them may be small, but these are the categories that ensure high turnover of goods.
Target . The main products that bring profit. They determine znb directory the general specialization of the store.
Unique . They distinguish the company from competitors and improve its image.
Convenient . These are related products that can complement the main purchases.
Seasonal : Products appear on shelves during a specific season and are designed to retain customers.
Check if your business has all product categories. If not, you are missing out on revenue and may even lose customers.
For example, if a houseplant store sells only flowers, soil and pots, then adding flowerpots, fertilizers, shelves for flowerpots, etc. to the assortment will help increase the average bill. Flower bulbs or bouquets of dried flowers can be sold as seasonal goods.
Cross-sell
In this case, the customer is offered to supplement the purchase with another product. For example, when ordering a houseplant, you can offer suitable fertilizer or a flowerpot.
Upselling works not only in offline stores, but also on websites.
An example of upselling on a website is an effective way to increase the check
In some cases, it is important to divide buyers into categories, offering them different products as related products. If a customer buys a premium product, then the offer should be appropriate.
The amount of goods for upselling should not exceed 25% of the main purchase price.
Upselling
The customer is offered a more expensive product, but with better characteristics. This is often used in electronics stores, when the seller offers to compare a more expensive model of equipment and gives arguments that it will last longer or has modern functions.
Selling attractive phone numbers to corporate clients is a great example of upselling. It is profitable for businesses to buy such numbers because clients will remember them more easily.
Reward for purchase of a certain amount
This tool is popular with delivery services that offer to deliver an order for a certain amount for free. At the same time, this method can be used for other companies as well. For example, an electronics store can offer a 5% discount on orders over 10,000 rubles.
Sale of sets
Putting together sets of products helps to increase the average bill due to the greed trigger . The price of products in a set is usually lower than buying them separately, and therefore it is profitable for the client. Even if the buyer wanted to buy one thing, then seeing the set, he may buy more.
Promotions and discounts
This is a temporary solution to increase the check, but some companies use promotions regularly, changing only the products or terms of the offers. For example, if a person comes to buy shoes and sees the promotion 1+1=3, it will push him to pay for two pairs of shoes to get the third one for free.
Loyalty program
A study by Visa and Bond Brand Loyalty showed that 64% of customers are willing to spend more money to earn and spend bonus points through a loyalty program. Therefore, a loyalty program is considered one of the best tools for returning customers and increasing the average check.
For example, in a clothing store, a customer is offered to add another 300 rubles worth of goods to their order to earn 150 points. This is not a large amount – most customers will gladly add a pair of socks, a lint roller, a handkerchief or something else to their cart.
Smart merchandising
Merchandising is a way of displaying goods on shelves to increase sales. It is thanks to it that you always see discounted goods, sweets, chewing gum, batteries, etc. at the checkout counters in stores.
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To increase the average bill, we recommend:
place products that are often purchased together nearby;
the most profitable positions for the company should be displayed at eye level – this level is also called the “golden shelf”;
seasonal goods should be displayed on separate shelves with signs.
In addition to the display of goods, be sure to monitor the level of comfort in the sales area. It should be clean, have sufficient lighting, unobtrusive music and smell. In a pleasant environment, you want to stay longer, and this entails an increase in the check – people simply buy more.
