10 steps to increasing your Average Transaction Value
Increasing your Average Transaction Value (ATV) is the quickest and easiest way for you to increase your turnover.
Boost your bottom line by increasing each customer’s spend with each purchase. If upselling is done correctly, it can be seen as a way to surprise and delight your customer. It can be seen as offering excellent customer service.
But are your staff capable of upselling? Are they scared to upsell? Confused on what to upsell? Or, simply not trained to upsell?
Here are ten steps to increasing your Average Transaction Value:
1. Understand where your ATV comes from
Your ATV is simply your sales over a given period divided by the number of transactions over that same period.
Your ATV will fluctuate over certain days. For example, in food retail the ATV is higher on weekends because people shop in couples.
Your ATV does not reflect how many people you serve, but rather how well you serve each customer. If you are busy, more often than not, your ATV will be lower because staff have forgotten to upsell. A well-trained team can still achieve high sales on a very slow customer day by simply upselling higher value items.
2. Find POS reports
In every point-of-sale (POS) system, there will be a daily ATV in the Z report.
Good POS systems will have detailed reports section in their back-of-house reports. You should be able to find the daily ATV for your store as well as the daily ATV of each individual on staff member. Become familiar with the reports you can access, and analyse them daily.
Need a POS system? Try Kounta for free.
3. Analyse individual ATVs
Each staff member will tell you that they are upselling, but analysing their results is the only to be sure.
Assess each individual’s ATV to identify who needs to be trained in upselling and who is very successful.
Once you identify the ATV leaders, get them to share their successes with the team. Perhaps even ask them to mentor or train others in your team. Once everyone raises their ATV, your overall ATV increases.
4. Identify standard upsells
Most staff members fail to upsell because they simply cannot think quickly enough to offer items for an upsell.
Identify three sure-fire upsells that team members can use with any sale — upsells that will delight the customer and improve their experience in buying from you.
For example, in food retail upselling a bottle of water is always a winner because people know they should drink more water but simply forget to. If you work in hardware or landscaping, gloves are an easy upsell, and the customer always forgets they need them until they get home.
Train your team members in three upsells only to make it easy for the salesperson to remember. Having too many upsells confuses both your employee and the customer.
5. Train staff
It sounds rather obvious, but often your team members don’t know how to upsell. They may not know what an ATV is, let alone how to increase it.
There should always be a sales conversation or service procedure that your employees utilise at every sale. Be sure they know what it is and how to deliver it.
6. Run a staff competition
There is nothing like healthy competition to increase your ATV.
Offer a prize to the staff member who increases their ATV the most over a given timeframe. Or perhaps offer a prize to the person who sells the most of a certain item.
Surprisingly the prize does not have to be big; it just has to be something that people aspire to have — the big Toblerone or tub of M&Ms works as a treat.
7. Set daily targets and communicate them to the team
The sure way to lift your ATV is to set a target for the team to aspire to.
Look over your ATV for the last three weeks. Calculate the average, lift it by 10 or 20 percent and voila — this is your new target.
Display the target where all staff can see it. If the team is reminded often, they will be more inclined to meet it.
8. Make the team accountable
Do you have a leadership team? Or a manager?
Have them report against set targets on a daily basis at the end of trade.
Making your team accountable always encourages success.
9. Recognise and reward staff
Once you have identified your upsells, trained your team and run the competition, be sure to keep your team striving for excellence.
Name the top three upsellers each week; if they are on this list three weeks in a row, reward them for their excellence.
We humans love to be recognised and rewarded. Sometimes it is just the recognition we are after. Never underestimate the value of a “well done” comment to a team member.
10. Make it part of your culture
Imagine if you never had to implement these 10 steps again. Imagine if your ATV was always increasing.
Making upselling the norm will lead to an ever-increasing turnover. Over time, what tends to happen is the customer fronts your counter with the upsell already in their initial order so you get the opportunity to upsell on the upsell.
Magic isn’t it? Not really, but training and persistence do pay rewards in the long run.