Learn how to increase your average revenue per customer
ROI is a major performance indicator that indicates the profitability of an expenditure of your business. It helps you measure the success of your business strategies over the time. It is important to keep an eye on the revenue you generate from the customers.
Entrepreneur columnist Jacob Montreal has shared three strategies to increase your average revenue per customer.
Montreal says, “Here are some easy but effective ways to maximize the amount of revenue you can get from each of your existing customers without limiting your options for winning over new ones.
1. Increase your average transaction size.
Do you ever notice that whenever you visit McDonald’s, your bill exceeds your budget or intended purchase? The fast food giant increases your transaction simply by offering complementary products to go with your order (“Fries with that?”) That way, you spend more, and McDonald’s earns more. You get to eat more, to your satisfaction, and McDonald’s gets more money.
Multiple ways of idoing the same thing — increasing the average transaction size for each customer — include:
Cross-selling. This is the act of attaching other services or products from your business at the checkout stage for each customer. It is not meant to replace the main product; rather, the new offer or product complements the main purchase”.
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