Size matters. The size of what a customer spends matters to every business owner. The more a customer spends, the more revenue the business can generate and the more profitable it can get.
Because of how important it is for a customer to spend more, many businesses have tried to get customers to increase their spending. Some of their strategies have been fatal failures while others were quite successful.
In this article, we would share some of the strategies that have worked to get customers to spend more both online and offline.
How to Get Customers to Spend More
1. Train Your Salespeople/Staff – Your salespeople or retail staff are critical to the success or failure of whatever strategy you choose to put in place to make your customers spend more.
The first step to increase your customer’s spending is to train your retail staff on the importance of getting customers to spend more. And then show them how they can go about it. If you don’t know the exact how you can learn more strategies below, or you can choose to consult a sales trainer to help train and motivate your staff.
2. Cross-sell & Upsell – One strategy that’s at the core of getting customers to spend more is to nudge them towards more value.
In cross-selling you offer customers complementary products or services that would unlock more value for them. For example, offering someone that bought a phone a pouch or a power bank is cross-selling.
Whereas, up-selling is selling the customer on a higher-priced item that usually offers more value.
Pro Tip – When you up-sell or cross-sell a customer, make sure you’re not doing it to increase revenue only, ensure that what you’re offering will bring more benefit in tune with the customer’s needs. We also recommend that you cross-sell with small budget items that are less expensive relative to the main item they’re buying.
3. Get Them to Spend More Time – Getting your customers to spend a little more time at your store will increase the probability that they would spend more. The simple logic here is that they would spend time browsing through your catalogue. Supermarkets do this by organizing their layouts in a way that makes the customer go through a labyrinth when they shop.
Another way you can do this is by making your customers comfortable by providing sitting areas, children sections etc. depending on what you sell.
4. Customer Loyalty – Rewarding customers for buying more with discounts, free products and other incentives (especially personalized value items) is a great way to encourage them to spend more.
Carry out an audit of your customers’ average buy size and reward customers that spend more on each purchase. This would increase their brand loyalty because you’ve made them feel special, you can also use loyalty programs to encourage lower spenders to spend more (with a minimum purchase size with knowledge of your purchasing data).
5. Limited Time Offers – Setting a deadline on a lower price for items is a gentle way to nudge interested customers who would otherwise have postponed that purchase to make it sooner – thereby increasing their immediate purchase size.
Pro-Tip – You have to be credible when using this strategy because if a customer calls your bluff on a 24-hour discount, and it is still live hours or days after, it would be a blow to your credibility and future offers like that would not have the desired effect.
6. Creatively Offer More Value – As we said before at the core, you should be more concerned about providing more benefits to your customers. The more creative ways you can find to provide added value the higher the probability that your customers would spend more.
Here are a few examples that can help. When you make an order on an e-commerce site you may be given the option of standard delivery or a swift delivery (Usually within 24-hours) which would make the customer pay more for delivery. You can also offer discounts to customers if they subscribe to your subscription plan or simply extend their subscription thereby making it easier for them to spend more in future.
The best way to get your customers to spend more is to make it easier for them to do that. Give them gentle nudges by offering them more tailored value and convenience when they buy.
But without training your staff or retail people, the execution of your strategies no matter how brilliant would fail so incorporate that into your strategy.
You have more chances of succeeding if you’re surrounded by people who have faced similar challenges you’re facing. People who have the network and access you need to grow and achieve the objectives you have set for your business.
That is what a Mastermind Group provides – A space to share your challenges and enjoy practical solutions from your business owners as well as the social network to ease the implementation of your strategies.