Your primary goal as a business owner is to make money. While there are a few different ways to make money, one of the most effective ways to increase your profits is to generate more customers. Once you build your customer base and drive traffic to your website or your physical location, it is essential to put an effort into getting your customers to buy more each and every time they visit. One figure you might or might not analyze is your dollar spend per customer. This figure is very important and can be your key to earning more profits without taking on a greater expense, but the question is, how do you increase your average dollar spend per customer to elevate your profits?
5 Effective Ways to Increase Profit Margins by Increasing Dollar Spend
1. Come Up With a Unique Selling Proposition
You must come up with unique reasons why your customers should buy a specific product from your company if you want to see your sales skyrocket. As a part of your marketing strategy, you should have already come up with several different reasons why your company is better than the others. It is time to use these reasons to your advantage and communicate them to your customers so that you can stay ahead of the competition.
2. Give Your Customers a Variety to Choose FromIt can be difficult to encourage customers to spend more if you do not offer a variety of products that they want and need. Do not limit your companies potential by limiting your product offerings. Make sure the products you sell all follow a cohesive theme but also think outside of the box. If you sell Christmas gifts, make sure you also sell wrapping paper and decor and you can increase your dollar spend quickly when the season is right.
3. Teach your Staff about Cross-selling
Some customers will not buy extras if they are not offered. Make sure your sales staff learns the importance of cross-selling. When a customer checks out to buy a camera, be sure to offer a case or an SD card. Up-selling will go a long way.
4. Offer Incentives to Buy More
Sometimes, incentives are enough to entice customers to spend more than they planned on spending. If your customer is already making a large purchase, they may be more willing to buy a new printer with their computer if you offer them a discount. You can also give away inexpensive promotional items that will do the trick.
5. Loyalty Programs
Loyalty programs are a great strategy when you are working on your customer experience management. Not only can you ask loyal customers for feedback with advanced customer feedback software systems, you can also offer your customers rewards to encourage them to buy more from you.
You cannot just sit back and expect your customers to spend more every time they visit your e-commerce or brick and mortar store. With these tips, you can improve on the customer experience and maximize profits at the same time.
Hayley is a business consultant, author and blogger residing in Portland Oregon.