Most C-store owners believe that the best way to increase their profit margins and revenue is by attracting new customers. But according to the top grocery distributors in Virginia, the finest way to earn more profit is by increasing the earnings at every sale. In simple terms, you can enjoy a higher revenue with the increase in your average basket value.
If it sounds like something new to you or you are already aware of it but do not know the best practices to implement, check this post. By the end of this post, you will learn the average basket value and the best ways to keep it high.
What is Average Basket Value?
It is also known as Average Order Value and is a practice where instead of acquiring new customers to boost profits, business owners turn to the existing customers to increase revenue. By squeezing as much value as possible from current customers, you can increase your earnings with a minimal cost.
The Average Basket Value (ABV) measures the average spending by a customer on one transaction in your outlet for a particular time duration. It is a critical metric to track, which you must monitor every month.
A higher ABV means higher revenue, a boost in sales, greater return on investment, increased customer lifetime value, and faster profitability.
How Do You Calculate Average Basket Value?
The AOV is calculated by dividing the total revenue by the number of orders.
For example, if the last month’s sales of your store are $15,000 in revenue from 500 orders, the AOV is $15,000 divided by 500, which equals $30.
Best Ways to Boost Average Basket Value
By implementing effective tactics, it is possible to increase your Average Basket Value without incurring hefty additional costs. Here’s how you can boost it!
Freebies can be anything from a discount to a small gift on a future purchase. Customers are always allured with ‘free items.’ They are an excellent way to show them that you value their purchase and that you want them to come back again.
You can offer free shipping or a $1 delivery fee to attract customers to make or complete an order.
Personalize their Shopping Experience
Use your customer data related to previous shopping choices and preferences to craft a personalized experience for them. It is a way to excite them to spend more on your offerings.
Using the order history of your customers, you can tailor products and marketing campaigns for them. It is a targeted approach to generate a high average order value.
Attract Buyers with Appealing Product Pages
Your product pages play a pivotal role in impressing buyers. Introduce eye-striking colors, graphics, layout, and choice of words on your product page to boost conversion rate.
Make sure your product delivers discounts, bundles, and special pricing tiers to attract customers and let you achieve a higher chance of conversion.
Introduce Special New Offers
A great way to entice existing and new customers is to provide them with special offers. Plan a bundle for first-time shoppers. When they start enjoying your products and shopping experience, they will prefer to visit again, resulting in a higher average basket value.
Highlight Trending Items
Most grocery and beverage distributors in Virginia practice this tactic to appeal to new and current buyers. By highlighting popular items in your store, you provide more visibility to the items and increase the chances of your customers buying them.
Click flattering photos and display them on your product pages. Introduce offers with them and showcase them. Such strategies deliver promising order value.
Organize a Contest
Announces a contest where customers win prizes when they purchase often. Inform buyers that when they make a purchase, they have a higher chance of winning the prize.
Numerous apps are available for running the contest. You can boost the average order value regularly by announcing such contests.
Upsell and Cross-Sell Items
Cross-selling is recommending complementary items to customers. For example, if a client purchases makeup products, you may suggest makeup brushes as your cross-sell strategy. Do click and showcase the images of products together.
Upselling encourages buyers to purchase expensive versions of the same items or buy numerous products. These two lead to an expanded average basket value.
Provide Reliable Customer Support
Clients sometimes require hand-holding before they purchase. If your website is unable to offer the necessary support to them, they will leave. Incorporate live chat in your site to ensure all customer queries are answered. It also encourages them to hit the purchase button.
Many businesses have benefitted from the regular use of live chat on their website.
Offer a Flexible Return Policy
Just like a good shopping experience, you must deliver a smooth and hassle-free journey to your clients when they return a product. Provide a flexible and transparent return policy to alleviate a client’s anxieties about purchasing from you.
Clearly display your return policy on your site, and if a customer returns the product they purchase, be flexible to make sure they come again. It is a good practice for both new and repeat customers.
Down-Sell Add-On Items
Down-selling means encouraging your buyers to purchase a cheaper product after completing a sale. It is equally effective as cross-selling and upselling.
Make sure the product adds value so that your average order value can increase by a decent margin.
Provide Time-Sensitive Offers
Such offers are ideal for increasing the average order value, particularly during the low season. You can gain discounts for a limited time on specific items. This urgency ensures your customers add more products to their shopping carts.
Establish a Loyalty Program
You can increase customer retention and generate brand ambassadors by creating loyalty programs. Such programs can help you earn discounts or points on selected items.
It provides you with a better chance of fetching repeat customers, and they are cheaper to promote.
Partner with Wholesale Food Distributors in Virginia to Increase Your Average Basket Value
Practicing any tactic requires experience and expertise to achieve successful results. Atlantic Dominion Distributors are the best wholesale food distributors near Virginia that can provide you support in increasing your Average Order Value. We can help you create bundled deals and lucrative thresholds so that you achieve high order volume for your store. Reach out to us to get started.