Average check is the mean amount of money that customers spend in your online or offline store when ordering. You need to divide the sales result by the number of orders received to calculate the middelmaat value of an order in your shop. Example: 30 $80 orders, 20 $60 orders, and 70 $30 orders. We dispense the total income by the number of orders and get a check for an average of $47.5. The size of the mentioned bill is extremely important for any industry, as it directly affects profits. If after the analysis it becomes clear that the average check amount is small, then you need to increase it, as it brings many benefits to your business.
Table of Contents
Two main advantages
Increasing revenues and profits
As the average check increases, so does the profit. Obviously, the more a market earns per order, the more profit the business as a whole receives. You will have the opportunity to reinvest in business development when a positive change in the average order value is noticed.
Profitability of marketing expenses
Sometimes it happens when the profit becomes very low due to the financial costs of very expensive and unprofitable marketing. However, you earn more money per customer (as the average check increases) and are more likely to cover customer acquisition costs due to increased margins in absolute terms.
There are some useful solutions to boost the average check in marketplaces. Let’s look at the most popular one. It is worth remembering that it is extremely important for each business owner to determine his/her own strategies, which are based on an individual approach and specifics.
Loyalty system
The rewards platform https://walletfactory.com/rewards-platform/ presence also contributes to the growth of repeat sales and the customers retention. Every time a person places an order in your store, he/she can receive points or discounts just because he/she is a regular client. The advantage of this rewards program is that it helps build a brand community, in other words, it encourages a customer to come back to your website to shop. This is because they feel the purchase value and the rewarded points or discounts give some gratitude from the retail company. You create a larger base of brand advocates by encouraging repeat sales. At the same time, you will not spend extra money on attracting new customers and orders.
A well-thought-out loyalty management program by the well-known Walletfactory Company will allow the client to feel needed by the company. Especially when it’s about the software implementation. A decent app in the form of a digital card in the mobile device can reduce the degree of consumer churn and increase the loyalty of the target audience. Walletfactory Company https://walletfactory.com offers customized ecommerce solutions and provides bonuses for purchases. In any case, the basis here is the accumulation and use of points. Such an innovative platform is greatly secured (all the data is reliably encrypted and greatly protected from the frauds) and successfully adjusted to the needs of every business.
Read also: How to Build Customer Relationships That Last