Attracting customers through the door is only the first step. Once they’re there, you don’t want them to skimp on small purchases that you barely break even on. Here are just a few ways that you can encourage your customers to spend more.
Adjust your pricing
Your pricing can have a big influence on how much customers spend. Don’t feel that you have to put your pricing up to get customers paying more – lowering your prices could be a way of increasing customer spending. Even losing a cent can make customers spend more – people psychologically perceive $9.99 to be much more affordable than $10, even though you’re practically charging the same amount.
Offer perks for spending over a certain amount
One effective way to get people spending more is to offer perks to customers that spend over a certain amount. Retail stores will often offer discounts on a customer’s next shop if they spend over a certain amount, whilst takeaway restaurants may throw in free delivery. In fact, freebies are a common incentive, making people believe they’ve saved money by spending more when actually you’re the one that’s better off (just make sure the freebie is something cheap that doesn’t lose you money).
Accept credit card
If people don’t have enough cash on them and don’t have enough money in their checking account to use debit card, you can still get them to spend money by accepting credit card. Any company that deals with large transactions over $100 should ideally accept credit card – you are charged on each purchase, but it’s worth it in most cases. Setting up a Total Merchant Services account could help you to get started. Many card readers accept credit card whilst almost all online payment services do too. Credit cards can have other advantages such as offering more security than debit cards.
Consider offering payment plans
When it comes to encouraging people to buy high-value products and services, offering the opportunity to pay in instalments can be another way of enticing people to spend big. Payment plans do have their risks – you need to keep on top of payments to ensure that your customers are paying each instalment. You can also add interest to these schemes providing that they’re not pre-payment schemes. It’s generally worth doing credit checks on customers before offering payment plans so that you can be more trusting that they will pay back the amount promised.
Promote last-minute extras
A popular way of getting customers to spend more is to promote extras just as they’re about to commit to a purchase. This is how many budget airlines and gas stations make the bulk of their profit. This could be something that the cashier asks the customer at the counter or it could be something you add into an online payment process just before reaching the checkout. Even displaying ads at the checkout could be enough to get people splashing out on those little extras.
Whether you share your tips amongst everyone or let customers take them individually, tips are still a form of extra income worth encouraging. Some companies add an optional service charge to the bill, which customers can choose to opt out of. Alternatively, you could simply place a tip jar in plain sight and label it so that customers know what it’s for. People give generous tips as a result of good service – simply being friendly and helpful could be the key to increasing your income.
Introduce loyalty schemes
Loyalty schemes can get customers returning, which could mean more money spent in the long run. The most common form of loyalty scheme is a loyalty card or points cards that allow people discounts and freebies after they’ve spent a certain amount. Companies such as WeLove2Print allow you to customise and print off your own loyalty card. You could even create your own loyalty card app to display on a customer’s mobile device. If you offer a service, another option could be simply to offer discounts to any customers willing to return.