Welcome, fellow business pioneers to our third installment in the ‘Unlock Your Earning Potential’ series. Today, we embark on an exciting adventure filled with secrets, strategies, and a sprinkle of humour, all aimed at maximizing your revenue streams and driving business growth.

At ActionCOACH PRO, we believe in injecting fun and creativity into the business world, including increasing average spending per customer. So, please put on your thinking caps, and join us as we journey to higher revenue.

What is "Average Customer Spend"?

Let’s begin by demystifying the concept of average spend per customer. It might sound like a mouthful, but it is a simple concept that can boost your revenue streams. In essence, it is the average amount your customer spends in your business every time they make a purchase. It is the compass that guides you through the intricate landscape that is purchasing behavior, helping you navigate this competitive terrain with finesse.

So how do you calculate this magic number?

It is as simple as adding up the total revenue generated from customer purchases and dividing it by the number of customers. Voila! You now have the average spend per customer. We understand that numbers can be as thrilling as a roller coaster ride, so we are here to guide you through the twists and turns of customer spend analysis, helping you understand the trends, preferences, and areas for improvement within your business.

Factors That Influence Consumer Spending

Consumer spending is influenced by a myriad of factors that go beyond the products or services themselves. Let’s look at some key drivers and how to leverage them to your advantage.

Emotional Triggers

Ah, emotions! The secret codes that unlock customers’ wallets. By understanding the desires and aspirations of your customers, you can create an emotional connection that makes them want to spend more. Picture yourself giving them a warm hug, but instead of a hug, it's a purchase that brings them joy.  

Perceived Value

Customers are savvy and want to feel like they're getting a bang for their buck. Show them that your product or service is worth every cent and more! If you joined us last week, we spoke about crafting your Unique Selling Proposition. Once you have differentiated yourself from the competition, it would be like giving your customers a unicorn for the price of a pony.

Accessibility

In this fast-paced world, convenience can make or break your business. How many times did you pass up on a purchase because of complications or technical difficulties? Make it easy for them to purchase, offer personalized recommendations, and provide seamless payment options.

Trust

Trust is the glue that holds customer-business relationships together. Be their confidant, their trusted advisor. Show them that you genuinely care. You need to be knowledgeable in the industry you operate in. Are your sales specialist subject matter experts? Do they fully understand your offerings? By making sure your employees are well-trained, you can help build that trust.

Social Influence

Customer love to follow the crowd and influencers hold the keys to their hearts. Showcase positive testimonials, and endorsements, and tap into the magic of social media. In many cases, customers buy on reviews. How many times did you buy something online because it had more reviews than its competitor? If you are not asking for reviews, now is the time to start. You can even provide incentives for your customers to leave a testimonial. Once you build that online presence, you essentially have a virtual fan club that convinces customers to open their wallets.

Strategies To Increase Consumer Spending

With a solid grasp of the factors that influence purchasing let’s look at some strategies you can use to drive momentum and revenue in your business.

The Art of The Upsell

Mastering this art can be a game-changer for your business. Think about it, what is better than a smooth-talking salesperson who knows how to make customers say, “Yes, please!”? Think of it as offering higher-valued alternatives, ergo, providing them with added value and an irresistible upgrade. With the power of the upsell, you increase average customer spend and create a memorable and satisfying experience that keeps customers coming back for more.

To accomplish this, we use the “Rule of Three”, a valuable technique that adds excitement and enhances the upselling experience. You present customers with three tiers of options — good, better, and best. You offer them a menu of possibilities, where they feel empowered to choose while nudging them towards higher-priced options. Customers leave feeling satisfied, and your average spend per customer reaches new heights.

Cross-Selling Magic

This will require the ability to go beyond a single purchase and create an immersive experience for your customers. Visualize yourself as a skilled curator, carefully selecting products or services that seamlessly complement their original choice. With each offering, you create a complete package, like the missing pieces of a captivating puzzle that fit together flawlessly. Through this, you not only boost your average customer spend but also deepen their engagement and loyalty.

Cross-selling is a skill that all salespersons can learn. As a business owner, you want to start with your scripts. Make sure the sales conversation is filled with open-ended questions that ensure you learn as much as you can about your customer’s needs, likes, and wants. The next step is to train your sales agents to seamlessly identify which products go well together and how to make suggestions based on what they learn during discovery.

Here at ActionCOACH PRO, we’ll teach you how to uncover the hidden connections between products and create irresistible offers that leave customers wanting more. For example, a customer visits your store, and you've curated a selection of related products, personalized recommendations, and even gift sets. They feel like they've discovered hidden treasure, and your average spend per customer reaches new heights, it’s a match made in revenue heaven.

Raise Your Price

We know! It sounds scary, but fear not! Contrary to popular belief, raising prices can be a positive move for your business. We understand the delicate dance involved in pricing strategy. When done right, it can boost your revenue and customer perception of value. Just make sure you are communicating the added value and improved customer experiences.

We can also guide you through this process, ensuring that your price increases align with your brand positioning and customer expectations. With our guidance, you can clearly communicate added value and improved customer experiences that come with the price increase. Customers understand and appreciate the change and your business flourishes.

Loyalty Programs

This strategy ties in with the next. The first step is to create a loyalty program. You want to reward your loyal customers like they're part of an exclusive club. You can offer discounts, special perks, or early access to new products. Make sure your marketing emphasizes the benefits of your loyalty program. This is done to create a following, a tribe if you will, with your brand and products as the centrepiece. By doing so you make it possible to move to the next step.

High-Value Customers

These are the crown jewels of your business. Not only do they contribute significantly to your revenue, but they also serve as brand ambassadors and influencers.

With a loyalty program in place, you can identify and acquire these individuals through smart targeting. By utilizing customer segmentation and analytics, you can identify the characteristics and behaviours of high-spending customers. Armed with this knowledge, you can design targeted marketing campaigns, personalized offers, and curated experiences that resonate with this valuable segment, leading to increased customer spend and enhanced profitability. You then nurture those relationships by treating them like VIPs, solidifying their loyalty, and turning them into powerful advocates who generate additional revenue through their positive word-of-mouth.

Here at ActionCOACH PRO, we can help you identify, attract, and retain these treasured individuals. By providing exceptional experiences, exclusive perks, and tailored offerings, you'll create loyal advocates who drive higher spending.

To Wrap It All Up

Congratulations, fearless business adventurers! You've journeyed through the realms of average spend per customer, armed with strategies, insights, and a dash of humour. ActionCOACH PRO has been your trusty sidekick, guiding you toward revenue-boosting success.

Now, it's time to act. Implement the strategies we've explored, and watch as your bottom line soars to new heights. Remember, it's not just about sales; it's about building meaningful relationships, delighting customers, and making a lasting impact in the marketplace.

Let's make every dollar count and write the success story of your business, one satisfied customer at a time! ActionCOACH PRO believes in you, and together, we'll make your revenue dreams come true.

Thank you for reading!

Please let us know in the comment section below if you found value in this article and please share this with anybody that would benefit from an increase in average customer spend. If you are interested in more tips and business advice, make sure to follow our page and subscribe to our weekly newsletter so you do not miss our next post, where we will discuss how to keep customers coming back.