How to increase the company’s average ticket is a secret for many commercial managers. Selling for a lot more profit is the pot of gold at the end of the rainbow for many leaders.
But not everyone knows how to get there with the best results.
According to IBGE, in a survey carried out between 2008 and 2018, about one in five companies closed their doors in less than a year in operation. After ten years, only 25.3% of them were still open.
One of the big reasons for these statistics is the lack of planning and preparation when it comes to sales and profitability.
Want to understand how to strengthen your business? You are on the right track!
In this article, we’ve put together practical strategies to teach you how to increase your company’s average ticket in 6 steps, and more: how to encourage your team to practice it in sales!
How to calculate the average ticket?
Before knowing how to increase the average ticket, we need to understand exactly what this metric is and why it matters.
The average ticket, one of the Performance Indicators (the famous KPIs, Key Performance Indicators, in English), calculates the average value of your sales for each customer. That is, the estimate of how much each customer spends on your company in a given period.
When a company ignores you, it loses a lot of data about its financial health and customer movement.
To calculate this, you set a time limit (for example, one month) and divide your company’s total revenue by the number of customers who consumed your products and services in that period.
For example, if your total turnover was 150 thousand reais, and you had 500 sales in the month, the calculation is:
Average ticket = total billing / number of customers or sales:
BRL 150,000 / 500 = BRL 300
And that’s not all. From the average ticket you can analyze:
- Which products generate the best results for your company;
- The average total sales of your business;
- How many customers consumed your products or services in that period.
How to increase your company’s average ticket in 6 steps
Now that you understand the need to establish this metric, you will discover how to increase your company’s average ticket.
1- Focus on the ideal audience
If you want to increase the value of your average ticket in a practical way, start analyzing your customer base. Too many businesses lose sales opportunities by going after the wrong audience!
This is because the more qualified your customer is, the more likely they are to buy from your company, including more expensive items. One way to increase your business’ average ticket is to focus on selling to your Ideal Customer Profile , the PCI. It represents your best selling opportunities.
So, if you don’t identify PCI, you don’t know what the characteristics of your company’s best customers are (those who are more frequent and who buy more).
Your team wastes time and effort looking for any customer who might be interested in your business , and not the most qualified. The result is low sales and wasted energy.
However, by going after the best opportunities for your company, you pave the way for more robust sales, kits and other types of combinations. And that brings us to the next topic on how to increase the average ticket.
2- Mix products
A truth of the market is that many companies miss the chance to increase the average ticket by ignoring the product mix .
The product mix is the complete catalog of everything your business sells. It is a technique that focuses on providing several purchase possibilities to your company’s consumer.
So, what happens among many businesses is having a team that invests a lot of effort in a certain key product, leaving aside other more profitable opportunities.
A survey carried out by the Credit Protection Service ( SPC Brazil ) indicated that 59% of consumers in 27 Brazilian capitals made impulse purchases in February 2018 alone. This happened because the product mix was available to them.
In addition, your salespeople need to be engaged in delivering the product mix to the customer . Instead of focusing your efforts on a single product, cross selling (or cross selling) should be frequent among your sales team.
Cross selling focuses on offering a product or service that complements what the customer is already buying . For example, if you have a home improvement store and your customer has already chosen a faucet, why not offer tape to seal?
3 – Encourage referrals
This is, in addition to a way of increasing the average ticket, a type of prospecting. The advantage here is that you don’t need to invest a lot of time or money, and even better: you can attract new customers to your business.
However, to work, the indication needs to be accurate. A very common mistake is to use this strategy without measure in desperation to grow at all costs, but the effect is just the opposite.
Many people nominate just to get something in return, and, in the end, the referral doesn’t get you anywhere.
Businesses that offer these benefits need to ensure their return on investment. This type of strategy is only profitable for your business if it is a two-way street of benefits.
Your company cannot lose out, especially when it comes to increasing the average ticket.
4 – Offer advantages for purchase value
This is a popular tactic among companies that sell online, but it is not highly valued in other business segments.
If you want to increase your company’s average ticket, your customer’s final purchase value should be as high as possible, right? So why not provide a benefit (planned and advantageous) for a higher purchase price?
Many do not offer this benefit for fear of losing out in the end. Or, if they do, they have no idea how to structure prices and benefits.
People are always looking for benefits! The emotional side of sales is strong, and customers enjoy this kind of benefit on impulse.
If you think quickly, you can already think of a supplier who offered you free shipping or a different payment term if you made a larger purchase.
5 – Give strategic discounts
You might be thinking: if I want to increase my company’s average ticket, why decrease the price?
The issue here is strategy. The mistake of many sales teams is giving discounts to every customer who has a purchase objection or is reluctant to close the deal.
However, it turns out that this problem has more to do with your company than with the customer itself. First, if he’s only interested in discounts, it indicates that his salespeople need to look for the best tactics to convert price objections without having to resort to lowering values.
Since discounting must always be strategic, the mistake of many sales teams is not looking at it as a way to move inventory!
For example, if the consumer sees that when he buys more products or something of greater value, he receives some benefit or some special condition, the chances of him buying more increase and a lot!
Remember: the goal is to increase your company’s average ticket in the best way. If your team gives too many discounts (often unnecessarily), what will happen is exactly the opposite. Don’t let these practices wipe out your company’s profitability!
So, use these strategies so that, in the end, your customer makes a higher value purchase and your average ticket grows!
6 – Build customer loyalty
Don’t underestimate the emotional side of sales, because it’s very strong at your customer’s decision point.
A company’s reputation is key to the business. And it is from this lack of attention that many lose the chance to increase the average ticket by not retaining customers .
How is increasing the average ticket related to this? It is necessary to understand that the more voluminous and frequent your customer’s purchase is, the better for your business.
When the company doesn’t think about this strategy and stays in the comfort zone, it ends up leaving aside a way to constantly increase profits!
So, you need to think beyond the sale, and see what makes the most difference for your customer. That’s why the special benefits and conditions programs are so famous.
Contrary to the mentality of many businesses, applying this type of practice is not a waste, but an investment in loyalty.
If your company doesn’t do this, it misses opportunities for a more stable growth of the average ticket. Plus, it wastes a lot of time and money by having to prospect new customers to make up for those who never come back.
How to increase the average ticket by encouraging the sales team
Currently, people are not looking for just one product or service. They are looking for an experience. If you can’t offer that and stand out from the competition, customers won’t see any difference between your business and anyone else’s.
A key mistake is not encouraging the steps we’ve mentioned among your sales team. You can be killing your company’s profitability without realizing it!
An above average team can offer a mix of products, provide differentiated service and retain customers! So, if you fail to develop your team, you lose profits.
Training your team in sales techniques is also a way to increase your company’s average ticket and revenue.