Five Ways To Increase The Average Amount Customers Spend Per Order
You've already received an overview of how to get your customers to spend more money with you, using The S.P.E.N.D Strategy.
Now we're going to take a closer look at each component of this strategy, starting with the "S" (which stands for "Sales").
Specifically, you're about to discover five ways to increase the average amount customers spend with you per order.
Let's jump in...
Option #1: Offer Related Resources
The idea here is to offer cross-sell offers on the order page to boost the per-transaction amount.
This is the classic "do you want fries with that?" concept.
For best results, offer cross-sells that are highly related to the main offer. In fact, the cross-sell should enhance the use or enjoyment of the main offer.
For example, let's suppose you're selling a course that teaches how to create travel videos.
You might offer one or more related cross-sell offers such as:
- A set of transitions.
- A package of cheat sheets (video settings, shot selections, etc).
- A library of video examples and how they were shot.
Take note that since the customer has already decided to buy the main offer, at this point you're working to showcase the related resource.
Framing is important.
To boost response, ask something like this:
"Would you like to add a set of video transitions to your order for just $10 more?"
In other words, don't give them the total amount (such as $110 for the course and transitions).
Instead, let them know the price of the additional offer – $10 – as this small bump in price makes it easier for the customer to justify their purchase and take advantage of the offer.
Option #2: Create a "Deluxe" Version
Another way to boost your average per-transaction amount is to create a "deluxe" version of your product, which you then sell at a higher price point.
How do you create a deluxe version?
Check out these ideas...
The idea here is to simply bundle together additional products or bonuses to create a deluxe version of your offer.
For example, if you're selling an online course, then you may bundle together a related course or some bonus reports. Or you might offer something else that's valuable, such as access to a private members-only support group.
Here’s another idea...
Create a Multimedia Version
Another way to create a deluxe, higher-priced version is to create a multimedia version, which tends to have a higher perceived value.
For example, if you're selling a text-only course, you may offer a video course at a higher price tag.
Offer a Physical Version
Still another way to create a deluxe version is to offer a physical version of your product.
A physical version has a higher perceived value, which lets you attach a higher price tag to it.
Here's the next idea for boosting the per-transaction amount...
Option #3: Establish Minimums
The idea here is to offer discounts and incentives to your customers, but only if they meet minimum order amounts.
For example, if someone spends at least $50, you can throw in an extra bonus worth $25. If they spend $75, they'll automatically be entitled to the first bonus plus another high-value bonus.
You can do this with discounts as well.
For example, spend up to $40 and get 10% off. Spend between $41 and $80, and get 20% off. Spend $81 and up, get 30% off.
You can also combine these offers.
For example, anyone who spends at least $100 gets both a discount and a high-value, in-demand bonus product.
Option #4: Provide Payment Options
Some people balk at higher-ticket items, simply because they don't have the cash to pay for it. I totally get that. And, you certainly don't want to pressure people to spend money they don't have or stretch them into an uncomfortable position.
So, what do you do?
You can get more people moving towards the order button (and spending more money with you) by offering a variety of payment options and plans making it super flexible to get what they want from you in a payment structure that is comfortable to them.
- For starters, you can offer multiple options, such as Stripe or PayPal, ordering by phone, or even cryptocurrency if that's something you accept.
- Secondly, you can offer payment plans. For example, if you have a $300 item, you might offer a two-month payment plan ($150 per month) or a three-month plan ($100 per month).
Note: If you're offering something like a course, then you can deliver the content over installments too.
For example, let's suppose you have a $100 course that you can break up into eight weekly installments. You can then charge a $50 installment for two months and deliver a new lesson each week for eight weeks.
Note that you can also charge a little more for the installment plan.
For example, let's suppose you have a $97 course that you break into 12 monthly payments of $9.97 each, which results in $119.64. That's more profit for you, while providing an affordable payment plan for your customers. Those who want to pay the full price ($97) up front will get a discount for doing so. Everybody is happy.
Option #5: Raise Your Prices
The final way to boost your per-transaction amount is to raise your prices.
Two things to note here:
- Sometimes raising your prices also boosts conversions. That's because some people judge the quality of a product based on the price, so a higher price equates to higher quality (which in turn boosts conversions).
- Be sure your product is worth the price boost. If needed, add value to your offer and position it in a way that reflects high value. And be sure to justify the price in your sales copy so your prospects understand the reason why your product costs more.
Now let's wrap things up…
Your assignment for this module is to determine which of the five methods mentioned above would be a good fit for your product, audience and business model.
Go ahead and answer the questions on your worksheet (be specific with your answers), and then I'll see you in the next module – three factors for positioning yourself!