Purchase Ticket Size is an important metric to look for in retail business. Also known as average ticket, it is calculated by dividing the total sales by number of bills. For example, if your store sells items worth ₹ 1,50,000 with 20 bills, your Average Ticket Size would be 1,50,000/20. I.e ₹ 7500.
If your purchase ticket size is high, then you’re providing a good shopping experience to the customers. But if it’s low, then you need to work on increasing it.
And today you’ll know 5 ways to increase the purchase ticket of the customers
1. Practise Cross Selling & Up selling.
One of the easiest ways you can increase your ticket size is my cross selling and upselling. But it’s easy to make a mistake here. Most store managers cross sell & upsell by communicating their offers to customers. It may work sometimes, but not every time. Customers are smart these days and they immune themselves from getting persuaded into buying things.
So how can stores cross sell and up sell well? The simple answer is – by setting up their store right. Most store owners fail to segment the products in their store properly. Even if they do, it is just for a while. The layout of your store should be planned with cross selling and upselling in mind.
Place complimentary products in close proximity to each other so that more customers add them in their basket. It will help in cross selling. Structure the store in a way that people walk from one department to another. It will help in upselling.
Here’s the point: Let complimentary products catch people’s eye. They will start putting them in their basket. Showing is more important than telling.
2. Tell customers you’re payment flexible.
There are instances where customers want to buy things in stores, but they don’t. Why? Because they can’t pay the complete amount at the moment or they have a different mode of payment. So if you offer EMI and multiple payment options, then let people know about it.
Do announcements on your instore radio, place stickers on the wall or just tell them in person. Let people know that they can choose how they want to pay. Telling people you’re payment flexible can highly increase the purchase ticket size. This step is often overlooked by store owners, so don’t make a mistake there.
3. Come up with unbeatable Offers & Discounts.
One of the foolproof ways of increasing your ticket size is to offer unbeatable discounts. And while giving discounts, don’t offer only cash discounts. Try experimenting with percentage discount and value added offers.
The most effective offer that work for retail store is product bundling. It is a cross-sell and up-sell strategy that gets shoppers excited. You can bundle complementary goods together and offer them at a lower “bundled” price.
Product Bundling works because people think that they are getting more value for less money. Customers think If they buy two products individually, they’ll have to pay a higher price. But if they buy them together, they’ll pay a lower price. So most people go for the bundle, ultimately increasing your purchase ticket size.
You can also come up with “Re-engagement Deals” where you can offer a lucrative discount on customer’s next shopping. For example, if a customer shops from your store, you can offer him/her 30% off coupon on their next shopping.
Letting people know about the offers is also crucial. And the best way to let people know is through audio announcements. Jingles and audio advertisement can never get unnoticed. People may or may not look at your offer banner, but they will definitely hear audio announcements.
To sum up, don’t rely only on banner ads to convey your offer. Make audio announcements through your Instore radio for increasing your purchase ticket size.
Running short of creative offer ideas? Here are 8 ideas for offering discounts by SmallBizTrends
4. Improve customer’s In-Store experience.
Customer experience play a huge role in increasing or decreasing your average ticket size. Therefore, your focus should not be on cutthroat selling. Your focus should be on improving customers in store experience.
Here are a few areas to focus on:
Speedy Transactions: Most people can’t bear standing in long queues and waiting for their turn to come. They want their transaction to finish as quickly as it can. Make sure that you have sufficient cash counters. And the operators on these counters are highly skilled at what they do. They should be able to bill people quickly and get their things packed ASAP!
Friction Free Movement: Ensure that customers can walk throughout your store easily without any friction. Remove obstacles from their path and make product discovery into an easy process. Customers should not struggle to take a closer look at the products or move from one section to another.
Special Treatment: Offer your customers with refreshments and ask your staff members to greet them. Everyone likes to be treated well and respected. Thee store manager should not only respect the customers but also the staff. When the staff feels respected, they will respect the customers.
These steps will enhance the customer’s instore experience which will ultimately increase the average ticket size.
5. Use Instore radio to influence people.
Do you have your own branded radio to play custom music and announcements? If not, then you’re missing out. Music & Jingles make people stay longer in your store and audio adverts can help in bringing traction to your offers.
The type of music you play inside the store also influences whether people will buy from you or walk away. For example, slow and relaxed music make people go through the store slowly. It increases the dwell time of customers in the store which leads to more sales.
Broekemier, Greg, Ray Marquardt and James W. Gentry in (2006) conducted a research and found that happy music significantly increased the stimuli to shop.
Fast and upbeat music is suited when there’s rush inside the store. It makes people move faster and avoids congestion within the store. Similarly, announcements and jingles can be used to increase awareness about offers running in store. All of which will increase the purchase ticket size of the customers.
Having an In-store radio can makes audio advertising easier.
Ready to increase the purchase ticket size of your store.?
Focus on the 5 points we’ve given you and you’ll see how your ticket size soar up! And if you’re looking for an In-store radio provider, Ooka has equipped 3000+ stores of 80+ brands with In-store radio. We’re spread across 380 cities and cover 22 states in India.
Ooka Radio has it’s own Retail Store Music bank of 3 lac+ non copyright songs.
Get in touch today and we’ll quickly set up a branded radio for your store! You’ll be surprised to see how the customer experience becomes better after playing your own radio.