QUESTION – how do I maximise the average sale per customer?
THOUGHT – think strategically about your strategy
It is perhaps not surprising that 66% of small businesses rate acquiring new customers as their number one priority. It is interesting to note however, that no businesses rated the average sale per customer as the number one priority.
Another study found that 70% of businesses rate revenue as their number one priority with 60% of those saying that new customers are the key to that increased revenue. No one discussed the average sale per customer
This is consistent with the Australian obsession with advertising and communication more broadly.
The fact is – attracting new customer is of critical importance, but so are the average sale per customer, repeat business rates and referral (online and offline). Once the customer has been secured, the only way to maximise the return on the investment to date, which is often substantial, is to maximise the average sale per customer and deliver a level of customer satisfaction that will also maximise repeat business and referral rates.
It is essential to:
- Know your average sale per customers
- Monitor your average sale per customer
- Drive the average sale per customer
The average sale per customer is central to arguably the most important metric in business today – the life time value of a customer. Focusing on and driving the average lifetime value of each and every customer is the key to maximising the return on the investment in advertising and communication more broadly.
Despite this, I cannot recall seeing a strategy that directly addresses the life time value of customers let alone the strategies required to maximise this life time value.
In terms of the average sale per customer, this involves maximising:
- The value of the initial purchase
- The frequency of purchases
- The value of ongoing purchases
Furthermore, if the value of the initial sale can be maximised along with customer satisfaction, it will become easier to maximise the value of ongoing transactions.
Ensure that the life time value of your customers is a central element of your marketing strategy with a view to maximise the return on your investment in marketing
Ensure that your strategy directly addresses the average sale per purchase, the frequency of purchase and referral rates – with a view to minimising advertising costs
Entrepreneur, Selfgrowth.com, MYOB, Business.com, SBIA, Hubspot, The Atlantic, Digital Pulse, PWC, Resourceful Selling, Impact, Genesys and Forbes
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