Large businesses have systems and processes designed to increase the average value of a sale. A visit to the movie theatre’s concession is a prime example where customers are asked if they would like a purchase a combination of drink, popcorn and candy which gives them more for a few extra dollars. Not every customer will accept, but a number will purchase the combo, increasing the average value of the sale and improving profitability. Theatre staff are trained on how to make the suggestion such that it is easy for the customer to say yes and
feel that it is in their best interest.
With your team:
1. Examine what your customer is purchasing.
Ask the question, what else might the customer want or need that compliments the original purchase? What are the value-added services? Think in terms of what will help the customer. As a customer, there is nothing worse than getting home and discovering that you forgot something or didn’t realize that you need something else to enjoy your purchase.
For example:
- When purchasing a guitar, the customer may need a case, picks, strings, tuner, lessons
- An electrician on a service call takes the time to discuss surge protection on the electrical system
- The warehouse provides inventory handling and management in addition to storage space
- Davies & Associates offers business advisory services to influence future business growth, not just analyzing past results
2. Develop a process of talking to customers.
3. Train your team.
4. Measure the results.
By implementing this simple approach with your entire team you can expect to increase customer satisfaction, sales and profitability.
It would be our pleasure to assist you in achieving your business dreams, so contact us to get started.