How To Make More From Every Sale
Understand Why You Should Be Offering More Products To Your Customers (But Not Shoot Yourself In The Foot In The Process)
Stop Letting Sales Walk Out The Door
Your role as a business owner is to help customers get the best result they can.
This often means helping them with additional products that would enhance what they’re already buying.
As we talked about in The Only 3 Ways To Grow Your Shopify Store, Average Transaction Size is a foundational Revenue Lever you need to think about.
Without focusing on it, you’re losing sales which means you can’t afford to spend as much on ads as your competitors and can start a downward spiral.
Be A Helpful Retail Assistant
As we talked about in How To Replicate A Great Physical Store Experience, you need to think about how you’d treat your customer if you were in a physical store.
If you understand the problem they’re trying to solve, then you probably have multiple products that would help your customer get the best results.
For example, if they’re buying a vegan protein powder to build muscle, then you might also suggest your protein bars and/or a creatine supplement to help them get faster results.
When you increase your Average Transaction Size, you also often lower your distribution cost as you’re sending more products in one package.
Approach #1 - Before Purchase
Once a customer has added something to their cart, you can use various approaches to offer them other products.
They can appear on the product page under the add to cart button, appear as a popup once a product is added, or you can make suggestions based on what’s in their cart.
All of these happen before the potential customer checks out and give you a chance to increase their Average Transaction Size.
You just have to use this carefully, because the visitor might see the growing price and abandon the cart without purchasing the original item as well.
Approach #2 - Post Purchase
There are Shopify apps you can use which allow you to upsell a product after the customer has checked out, but still charge their credit card without reentering it.
This avoids our abandon cart issue above and is a powerful way to increase Average Transaction Size.
It also uses the psychological principle of commitment and consistency because once someone makes the first purchase, they are much more likely to make another purchase from you.
And the most powerful way to do that is immediately after the first purchase due to the recency effect.
Approach #3 - Pricing
Most Shopify store owners don’t test their pricing to see if they sell more or less at higher or lower prices, then do the math to figure out the optimum price.
They also don’t allow for a wholesale markup if they ever want to get retail distribution, because they’re only focused on selling direct to consumers.
Plus studies have shown that customers often get a better experience for products when they pay a higher price for it.
For example, when presented with 3 bottles of wine (cheap - average - expensive), people find the more expensive wine tastes better (even though the researchers put the same wine in each bottle).
Increase Your Average Transaction Size Today
It doesn’t take much to implement any of these ideas in your Shopify store and receive an instant revenue bump.
You can also continuously test and measure as you optimize your store to create the best experience for your customers.
By making more money per sale, it also gives you more cash flow to promote your store and have a bigger impact in the world.
I believe you should be trying to grow a $10 million dollar Shopify store, because that means that you are obviously helping a lot more people than selling your products from the dining room table (which is still a great place to start).