How To Increase Average Customer Value
In this article, I’m going show you how to increase average customer value.
Average customer value is a really important metric.
If you’re looking to generate leads and sales online then you need to keep track of average customer value because it dictates how much you can afford to pay to acquire a new customer.
Let me give you an example.
Let’s say your competitors’ average customer value is $100.
But your average customer value is $200.
That means you can go into the online advertising spaces like Facebook and Google and you can afford to outbid them for advertising space.
Over time that means you’re going to beat your competition, and you’ll never be in a situation where can’t afford to run Facebook ad campaigns or Google ad campaigns because it’s too expensive.
By increasing your average customer value, it becomes a lot easier to advertise online, and your campaigns become a lot more profitable.
So How Do You Do It?
Well, you can increase average customer value by getting people to pay more for your products and services.
But if you’re in an industry where there’s a lot of competition, and your customers are price sensitive, that’s obviously not going to work. You’re going to end up with far fewer customers if you simply raise your prices.
Instead, you should increase average customer value by using upsells.
An upsell is simply a product or service, an offer, that you make to people immediately after they have just bought something from you.
This is the best time to say: “Would you like to add this to your order?”.
Because at this point your customers have just bought one of your products or service and they’ve obviously decided that what you produce is something they’re interested in.
If you offer something related to the initial purchase as an upsell, a lot of people will add that to their order.
And this could make a massive different to your average customer value.
Of course, you can upsell your customers a few days after their initial purchase.
You could email them or hit them with retargeting campaigns on Facebook to get them to buy more of your products or services…
But that’s not the best way to do it.
The absolute best way to do it, is to catch them immediately after they’ve bought that initial product – before they hit the thank you page.
This is a very effective strategy because at this point your customers have just bought something from you.
They’re really excited about you and your brand.
I know this sounds very complicated from a technical point of view, but…
There’s a really simple way to set this up, and that’s to use a shopping cart solution called SamCart.
There are a bunch of different shopping cart options available, but SamCart is my favorite. That’s the one that I use, and that’s the one I’d recommend.
SamCart makes it really easy for you to create and set up upsell offers. You don’t need to know any code and you can use their simple templates.
No matter which piece of software you use, the most important thing is that you do use something, and you do have these upsell offers in place.
It could double or triple your average customer value, and as I mentioned previously, that will make your online advertising campaigns much more profitable.
And of course, if each customer is spending two or three times as much money with you because they’ve bought a series of upsells, that’s going to make a massive difference to your bottom line.
The last thing I’ll quickly mention is SamCart’s one-click upsells.
You’ll get even better results if you use what’s called a one-click upsell.
A one-click upsell allows your customers to add products and services to their order without having to re-enter their contact information and card details.
This makes is easier for your customers to add upsells to their order and that will make a big difference to your conversion rates.
The one-click upsell feature in SamCart is fantastic and I would strongly recommend that you do use it.
Best of luck increasing your average customer value.