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How to increase the average check in a store: 7 proven ways + upselling and cross-selling techniques

28.11.2020 20:37
Volodymyr Vytyshchenko
Volodymyr Vytyshchenko

Trade automation expert at Torgsoft

Torgsoft how to increase the average check

Techniques for increasing the average check work both in supermarkets and convenience stores. The average check gives the entrepreneur answers to questions about the state of affairs and informs him or her about the:

  • Customer solvency.
  • Whether the assortment meets customer expectations.
  • How employees and consultants work.
  • Whether promotions and loyalty programs work.
  • What time the store is full of customers.

The average check is calculated using the formula: sales revenue/number of checks = average check.
However, there will be no result if you analyze receipts only once. This is a continuous process that requires analysis in dynamics. If you are a small business, conduct analytics once a month. And if the demand for goods depends on seasonality or the intensity of purchases increases regularly, analyze the average check once a week.

For example, after analyzing the average check, you want to increase revenue by 30%. Take 30 days as a basis. Count how many customers visit the store per day (about 400). The average check is 1000. Calculate the revenue for the month using the formula: average check multiplied by the number of customers per month = 1000 x 400 x 30 = 12000000. Next, calculate the increase in revenue by 30%: 12000000 х 1.3 = 15600000. Now calculate the new average check in the store, which is calculated by the formula: average check / number of customers per month. During this period, the store was visited by 400 x 30 = 12000 people. Then the average check is equal to 15600000/12000 = 1300. Thus, you need to increase the average check from 1000 to 1300.

Such indicators allow you to evaluate the effectiveness of sales of a group of services and goods. This analytics is especially relevant when there are suspicions that a product is not selling, but in general, the group of services or goods is selling well. However, there are also situations like this: according to forecasts, business owners expect that the product will be in demand and guarantee 100% profit, but sales in the segment did not meet these expectations.

Track the average check for individual categories of services and goods. This will help employees to better form the assortment. If there are indicators below expectations, exclude unprofitable items.

An illustrative example: a restaurant owner believes that the main demand is for a cheese dessert, while the average check showed that visitors are 20% more likely to order chocolate mousse and even ask for an extra portion to take away. As a result, sales of chocolate mousse will be increased, perhaps additional funds will be invested and a custom packaging or design will be created when serving the dish.

How to increase the average check: cross-selling and upselling

Marketers identify two principles for increasing the average check:

  • Cross-selling is cross-selling, the essence of which is that at the time of purchase, the seller offers to buy not only the main product, but also related products. For example, when buying a mobile phone, they will also offer a case, maintenance, a warranty exceeding 12 months, a protective film, and a holder. When serving visitors, a waiter or bartender will offer an additional topping or drink. When shopping in online stores, we see an inscription or a picture of other products appear next to the selected product: "similar products", "bought with this product". Cross-selling requires careful selection of service personnel and control over their work. The main thing is to constantly train and motivate employees with bonuses and bonuses so that they are not lazy to inform customers about the opportunity to purchase related products.
  • Upselling - a customer is offered an analog that costs more. For example, you decided to buy a phone and the consultant told you about the model you chose, and then offered another product of the same or another brand, improved and upgraded in technical terms.

7 ways to increase the average check

  • Kits. Customers like ready-made solutions because they see it as extra care, saving time and money. When it comes to the food industry, these are business lunches or ready-made sets, cosmetics - a pre-packaged set for face or hair care, clothing - a bag, jacket or belt already matched to a dress. Sets are good because they include products whose sales have fallen. Often, the sets have a promotional price. When creating ready-made solutions, follow 7 main rules:
  1. Put the items on display so that customers can see them.
  2. Set prices below the cost of goods sold separately.
  3. Include at least three products in the composition.
  4. Require employees to inform customers about the benefits of ready-made kits, but do not force them to buy using pressure methods.
  5. Include high-margin products (products with consistently high demand and a low percentage of offers on the market) in the sets. This way, the customer will see that they are making a reasonable purchase in terms of savings.
  6. Add a ready-made solution on a mannequin or stand that evokes positive associations with customers.
  7. When creating sets, pay 80% of attention to the appearance. Experts recommend not making more than four different sets at a time, otherwise the customer's attention will be scattered and they will not make an impulsive purchase. It's important to choose the right set, so research the best-selling products and products that have been on the shelves for a long time, and then combine them.
  • Loyalty program. According to experts, using a well-thought-out loyalty program, a store will increase the check by 30%. The incentive scheme is to reward regular customers in the form of discounts and gifts, invitations to private sales. Bonus or savings cards partially inform about sales statistics, which allows you to save up to 20% on marketing research. A good example of how to launch a loyalty program is American Airlines, which launched a bonus miles campaign 50 years ago, which customers could then redeem for airline tickets.
  • Make customers buy related products. When a customer visits a store, they expect to spend their planned amount of money, but are actually willing to pay up to 25% more. Leverage this willingness to increase the average check and use the advice of marketers to successfully sell related products:
  1. In the checkout area, place shelves with high-margin products, but make sure they are not expensive. Choose products that cover 70-90% of the audience. These are product groups designed for the 15+ age group, suitable for both women and men.
  2. Teach sellers to offer promotional products. For example, in Watsons or Eva stores, the customer will be offered a discounted product or a promotional product at the checkout, such as "buy two units of a certain brand and get the third as a gift." Keep in mind that the price of the product at the checkout area should look more affordable compared to other products. Be sure to place seasonal products in slides from the beginning of the sales area.
  3. Salespeople need to be trained to inform customers about the possibility of purchasing additional goods. Unsure questions like "maybe you need ear sticks or an umbrella" will elicit a negative response.
  4. If the client wants a discount, agree to convert it into a purchase of related products or services provided by the company. This trump card is used by online stores. For example, "when you buy a holder for children's toys, delivery is free".
  5. On store shelves, place related products next to the main product.
  6. If the client refuses to pay for a branded product, offer a lower-cost analog or additional accessories to choose from, but no more than three.
  7. Don't be tempted - at first glance, it may seem easy to sell related products at a 30% discount, but in 90% of cases, there is a chance that the customer has already purchased such products and now they are no longer needed. Therefore, employees need to identify the customer's need for related products or services, and only then offer them.
  • Locomotive goods. Most often, the cost is reduced to 60% or given away for free. This method brings up to 80% of customers to the point of sale. Once the customer pays attention and is in the right place, make sure that merchandising is organized 100% - the work of sales assistants, display, and related promotions. A well-constructed campaign aimed at increasing the average check will make the customer buy more than one or two products. And if 80% of attracted customers buy an unplanned product, the average check will increase at least four times. For example, the staff of a printing house promised to print business cards for free, but in four times the planned number, and on the back there will be a link or QR code to the printing house's website. Thus, the client will make the first purchase and if the result satisfies him, he will return and place a second order, buying related products or services.
  • Use available merchandising techniques. The basic steps are well-placed products on shelves or stands. Be sure to place related products with high-margin products. For example, put sour cream or sauces near the refrigerator with dumplings, and fruit or chocolate pastes near the rack with buns. Don't forget about zoning your products. It is an old truth that a product that wants to be purchased is placed at eye level. If you have a grocery supermarket at your disposal, plan the customer's path in advance - start with fresh pastries or seasonal fruits that increase appetite.
  • Motivate your employees. Properly trained consultants guarantee 70% of success. After all, the final result depends on how they inform customers. Employees must be trained to unobtrusively offer customers expensive products, additional services, and related products. In other words, apply methods that increase the average check by at least 30%. Motivate with money rewards. This works best of all. The most common option is the rate + bonuses. Make sure that employees know the assortment, are familiar with new products, and are not afraid to communicate with customers. To do this, conduct training sessions, carefully familiarize yourself with the new products that come to stores, and create focus groups.
  • Increase the average cost of goods. Two methods are used here: either forcing customers to buy expensive products or services or increasing the margin. The first option is considered the most acceptable, and the second is used with caution, since the inflated cost scares away regular customers for a long time and makes them look for cheaper analogues. Please note that often store employees deliberately make cheap products look unattractive to demonstrate their affordability. Also consider the fact that premium or branded products do not seem to have an advantage at first glance, so employees need to resort to tricks to motivate customers to buy such goods.

Meet the following conditions:

  1. Stock your store shelves with similar products in different price categories.
  2. Again, train salespeople and don't forget that employees need to be motivated and interested in selling premium products.
  3. Give the best place on the shelves to expensive goods. Buying them, customers feel their own superiority and importance. If there is not enough space, either highlight the best products on the shelves or deliberately make the cheap products not presentable. However, do not rush - cheap products should not scare away a customer with a planned budget - he should be happy to buy what he can afford.
  4. Tell us more about expensive products or services.

Conclusion: Increasing the average check is a set of measures based on the interaction of trained staff and the use of competent merchandising techniques. Be prepared for the fact that the process may take more than one or two weeks. The main thing is that these techniques work in both online and offline trade, as well as in the field of consulting and service.


Програма обліку товару | Торгсофт



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