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Wednesday, March 29, 2023

Make more money without making more sales

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Every successful business needs to make sales. And making enough sales so that you can grow your business and make profit is the ultimate goal.

But you don’t always need to make more sales to earn more money.

You can actually increase your cash flow by working to increase your average order values too.

Your average order value is essentially the amount of money that you bring in per order.

So, if you can increase the amount your customers are spending, you’ll be able to make more money with the same number of sales.

And we’ve got some tips that you can use today to raise your average order values through the roof.

Add a free Waybill/transport threshold
Make no mistakes, people love free shipping.

And that’s why one of the simplest ways to increase your average order values is to add a free shipping threshold to your store.

So, instead of offering free shipping for every order you could change your settings so that you offer free shipping for all orders above N25,000.

People love free shipping, and if they’re already interested in your products (and the price difference isn’t too big) they’re much more likely to add another item or two into their order.

That’ll help you to get more sales from the same number of customers.

You can add notifications when customers are checking out to let them know that their purchases don’t reach the free shipping threshold too – you can add this to your onlinne store.

Give product discounts
We get it, this might seem counterintuitive.

But seriously, discounts can really help you to increase your average order value.

The only caveat is that you’ll need to add a minimum spend to earn the discount.

So, you could go for something like N5000 off whenever you spend N75,000 or more.

You’ll lose a little bit from your profit margins from the original item, but you’ll be more likely to sell multiple items.

It’s a tradeoff that can really work wonders to increase your average order values and improve your cash flow.

Provide bundle deals
Bundles are a fantastic tactic for increasing your average order value.

And there’s plenty of ways that you can set up your bundles too, which gives you a lot of freedom to find what works for your business.

You could offer a buy two, get one free bundle. Or, you could curate groups of your products and sell them at a discount rate, but as one product listing.

You’ll need to be wary that you don’t cut your profit margins too much when you’re setting up your bundles, but if you can make them work, bundles will go a long way in helping you increase your average order values.

Cross-sell your products
Cross-selling is prompting your shoppers with different products that they may be interested in, based on the product that they’re currently viewing.

As an example, if your customer is on a page with a dress, you might have a list of related products that include other dresses, or a pair of earrings to match with the outfit.

This could help you to convince shoppers to make another purchase as well as the product listing that they’re already on, and that equates to a higher average order value.

Create a loyalty program
Loyalty programs are great for increasing your average order values because they help you to build relationships with shoppers.

I’m guilty of this myself – I’ve carried on going to a coffee shop multiple times and ordering new things just to get a free cup of coffee after 10 visits.

That’s loyalty programs in action helping to generate repeat customers, too. And when you take into account that 40% of most store’s revenue comes from repeat customers, it’s a win-win situation.

So build a loyalty program, encourage repeat sales, and create a base of customers who are more likely to place orders with larger quantities of products. #dobusiness #bestproducts #morecustomers

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