Increasing the value of each customer is always going to be good for the profitability of your business. So think about how you can find ways to increase your customers spend per sale. It may seem counter-intuitive but giving something away can do this.
Offer a gift with purchase
Offer a free gift, when they spend over a certain amount, or just with a selected item. You will encourage customers to choose to shop with you. but also to spend more per sale . If they have to spend a certain amount to get the gift, you will find their average spend goes up.
Use gifts to promote your other products
A great way to take this strategy a step further is to make your free gift a sample of other products you want to promote. If you are launching a new product or service then offering a free sample makes sense. Once your customers have tried it they will be more likely to buy in the future if they found it useful.
Many beauty brands use this strategy regularly, and to great effect. It’s common for these companies to offer a selection of sample size beauty products with another purchase. Sometimes the free samples are in a nice looking case so that the gift is really attractive. If the gift is linked to spending over $50 then anyone who was going to spend $30 will top up their spend just to get the gift.
Not only does the free gift encourage customers to buy more in the initial transaction, but it also introduces them to new products or items they may not have bought previously. Having the chance to try products can mean they will be more likely to purchase in the future.
Examples of increasing customer spend per sale
Brian and Shawn built a couple of seven figure businesses using a version of this strategy. They offered a free gift to anyone signing up for a monthly membership program that they were offering as an upsell to another purchase. The perceived value of the bonus was more than the total investment for the first month of membership. That made it seem like a no-brainer offer that they’d be stupid to turn down and increased the conversion rate dramatically.
Any chance you have to get someone into paying recurring money is good business sense. Some of them will stay long term and make you recurring profits. The trick is that the bonus itself has to be of real value to them. Often a physical item was offered as a bonus even when it was a digital membership program on sale.
Offering bonuses as an affiliate
You can use a similar strategy if you are selling as an affiliate. It is common when a digital product is released online for many affiliates to try to sell the same offer. Often buyers will choose who they buy from based on the bonus that is offered as a gift with the purchase.
So look at what you can offer as a free gift to your customers when they spend above a certain amount in a single transaction. You will encourage your customers to spend more and also get a chance to promote your new products if you make those products the gift.
Or vary the method by including an attractive free gift with the purchase of any particular product you want to push. Think about the long term gain and use a bonus to push people into a recurring membership. Don’t forget that physical products can work well even if the main offer is a digital one.
Whatever variation you decide to employ, finding a way to increase your customers spend per sale is a strategy that should work well for your business.
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