There are so many ways to increase average transaction value (ATV) in retail; from a strategic store layout and product placement to personalised special offers and abandon cart nudges – here we look at some of the most innovative retail marketing tips and tricks that have proven to boost average basket and order value.
- Know your ATV
Before you can implement the below tips, it’s important to know where your ATV comes from. Your ATV can be found simply by dividing the number of sales over a given period by the number of transactions over the same period. If you’re an online retailer, Google eCommerce Tracking can tell you your ATV. For bricks-and-mortar retailers, your till system should have the information you need.
- Personalise Marketing Communications and Offers by ATV
The ATV is a good indicator of how well you are upselling to your customer and it’s likely to fluctuate slightly, during busier times like weekends or when you have certain offers. To truly understand ATV and maximise the chance of increasing it, it’s best to be able to build customer segments around ATV and market offers tailored to those segments.
For example, you might have three ATV segments worth targeting:
Segment 1 – 1,000 customers with an ATV of ~£15
Segment 2 – 5,000 customers with an ATV of ~£32
Segment 3 – 500 customers with an ATV of ~£50
Why not send a cross-channel marketing campaign to each of these segments?
Segment 1 – Free delivery on orders over £20
Segment 2 – Free gift with orders over £40
Segment 3 – 10% off orders over £60
Personalised offers are always a good way to make customers feel valued and can be implemented both online and in-store. The above examples can also be tied in with your usual incentives too – for example; providing vouchers after a purchase is completed, special customer birthday discounts, loyalty incentives and points cards, etc.
- Create a Sense of Urgency
When in the mood to shop, consumers can become impulsive. Cater to the impulse effect by manufacturing a sense of urgency – in store, create a section that is on the way to the point of sale that consists of small, supplementary products that are affordable and commonly used. This encourages a last-minute addition to the customers shopping basket. This can also work online, when the customer clicks on checkout, display some ‘you might also like this’ items.
- Utilise Powerful Visual Merchandising
Encourage a lifestyle with your products, and invite your customer to become part of it. Build attractive displays around store to generate excitement, gain attention and further display your product. An interesting display showcasing something new and useful is sure to entice consumers to invest. This can be done through the use of display stands, wall graphics, posters and banners as a starting point.
- Offer the Customer Value for Money
Providing bulk offers is a clever way to increase customer spend and make them feel they are getting good value for their money. Offer products of the same line as a collection of items for a lesser price than they would be to buy individually. Promote this as a money-saving opportunity and it will encourage customers to invest in the whole set of products, increasing the ATV.
- Create a Sensory Experience
Add an extra element to your store by including a sensory experience. In a study conducted by The Scent Marketing Institute, it was found that the use of a sweet citrus ambient scent nearly doubled the average total purchases in a retail setting, from £40.00 to £65.00 per customer. The sense of smell is said to have the closest link to human emotion, causing us to react before we think.
- Leverage Clever Product Placement
Get clever with product placement and guarantee that your customers are going to see your entire range. This can be done by keeping the most commonly bought, ‘essential’ items at the furthest point in-store, meaning each consumer will have to travel the entire length of the shop before they find what they are looking for. This is another great way to encourage impulse and supplementary purchases. Don’t however, make it difficult to find your products as this could cause frustration for the buyer. Ensure that these items are clearly displayed, using clever signage to guide the customer journey.
- Event Marketing Experiences
Create an experience through event marketing. This is a great way to introduce your business to new customers and maintain a relationship with existing customers alike. An experience that aligns with your brand will help to increase retail sales. If you’re a fashion retailer, offer a personal shopping experience, if you’re a food and beverage retailer, offer a taste-testing experience. Allowing customers to have a tangible encounter with your product will increase their want to purchase. Ensure that the event is set up in an attractive way, with use of product visuals such as displays and banners to create the desired atmosphere.
- Catch the Eye with Clear Signage and Messaging
As mentioned earlier, make use of signage to help guide customer’s through the journey of your store. Ensure that not only do the visuals that you display in-store are attractive but also that they serve a function. Provide clear guidance as to where customers can find what they are looking for, making ease of navigating through the store a pleasurable experience. This could be anything from signage for individual products, to whole sections of the store. The use of signage is not only practical, but can also inspire customers to want something they didn’t know they needed before they entered your store. Make sure that your visuals reflect your brand appropriately too.
- Reduce Basket Abandonment Rates
For your online store, implement an abandon cart offer that is only available for a limited time to encourage the customer to snap it up. 67.45% of online shopping carts are abandoned before the customer completes a sale, implying that your sales numbers may only be one third of what they could be. (Shopify). Providing a discount to the customer who left your site will make them more likely to complete the purchase.
Applying these strategies will take time and effort, but can in turn provide great results and amp up the average basket value of each of your customers. Think you may need help to get started? At Alphagraphics we specialise in creating bespoke marketing materials and strategies for retail businesses. Give us a call on 0191 5800915 or email us at firstname.lastname@example.org