How Tiny Actions Can Yield Big Results For Revenue
When a business hits a wall, increasing revenue is a top priority for a company’s owners, marketing managers, and customer service professionals. Stagnation in one quarter can turn a good year sour very quickly. Individual customer transactions frequently hold hidden revenue that businesses may overlook or undervalue.
Increasing average revenue per customer is often a successful low-cost solution that any customer-service business can rely on to boost lagging profits. A steady customer base is a goldmine of added revenue waiting to be tapped. By employing a few key strategies, any business can make incremental additions to customer transactions that will increase overall revenue and turn a slow year into a profitable one. Here are a few good ways to get started.
Appreciate Every Customer
A business’s average revenue per customer may be small. Spread across a large customer base, however, that number has the potential to increase substantially. Instead of relying on large single transaction sales, when businesses focus on individual customer transactions as a smaller component of an overall total, great potential exists for unexpected revenue increases.
Personal appreciation can work well to increase average revenue per customer. When businesses surprise a regular consumer or a first-time visitor with even cost-free incentives, it triggers reciprocity that adds to transaction amounts. Basically, when a business gives a customer something that makes them feel special, the consumer has an increased need to return the favor — either with additional sales, repeat business, or referrals.
Smart businesses know that triggering reciprocity can help develop a solid reputation in the community and expand consumer base, which both lead to increased average revenue per customer. An incentive may be something as small as a sincere “thank you” or a complimentary low cost item. Personalized customer service and experiences give consumers a sense of feel-good satisfaction that keeps them and their friends coming back.
The once-a-day buyer who spends a dollar per visit does not seem important. Over the long term however, keeping that buyer happy could mean 10 years as a dedicated customer. That’s $36,500 in revenue…not to mention added referral value and having a business ambassador in the community.
Make Every Transaction More Valuable
Another way to increase average revenue per customer is to increase individual transaction size. There are several effective methods to leverage existing consumers and their regular per visit transactions:
- Upselling – fast food chains are the masters of upselling, with the pressure-free, yet highly successful question, “Would you like anything else with that?” The momentary pause when a buyer adds a drink or side order with a sandwich is one of the most effective methods to increase average revenue per customer.
- Cross-selling – offering consumers products related to their initial purchase is an operative way to raise the value of a transaction. By confronting them with choices at the checkout stage, customers are more likely to add additional services or products to an existing order.
- Be direct – the old adage about the worst that someone could say is relevant to every business transaction. Ask customers about their experience and then ask for a referral. A simple, “Thank you, tell your friends,” is the most direct and basic form of referral. Obtaining a name, phone number, or email is an even more assertive inquiry that can pay off long after the individual transaction is complete.
Every customer is an asset that when treated well and appreciated, will yield beneficial returns. In slow growth periods and in booms alike, increasing average per customer revenue will have lasting effects and value for any business.
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