Have you ever calculated the average spend per customer in your business? It’s a simple calculation: divide your total sales for a given period (e.g., 12 months) by the total number of transactions or invoices during that period.
Understanding your average transaction value is crucial because it highlights the importance of increasing transaction frequency among your customers. Even if just 50% of your customers make one additional purchase per year, your sales could see a significant boost.
Consider a house maintenance business offering services like window cleaning, house washing, and gutter care. Suppose this business has 500 customers and a turnover of $130,000, with 460 invoices generated throughout the year. In this case, the average spend per transaction would be $283. Some customers may schedule regular maintenance, while others only reach out when issues arise.
Increasing transaction frequency by just one per customer per year could more than double sales ($500 customers x $283 = additional turnover of $141,500). Moreover, it helps manage workload fluctuations, particularly during peak seasons.
Here are 10 strategies to increase transaction frequency:
- BAMFAM: Schedule follow-up services immediately after completing a job.
- Clearly articulate the benefits of additional services and the consequences of neglecting them.
- Follow up with customers who don’t schedule recommended services.
- Network and attend events frequented by your customers.
- Offer service plans with monthly payments to secure repeat business.
- Implement a loyalty or frequent buyer program.
- Surprise customers with occasional gifts or rewards for referrals.
- Expand your product/service offerings and promote them to existing customers.
- Stay in touch with customers through visits, calls, or helpful content.
- Consult with us for tailored strategies to boost transaction frequency in your business.
Repeat customers tend to become more loyal over time, especially when you consistently deliver quality service and indicate your availability for future work. By increasing transaction frequency, you not only enhance revenue but also strengthen customer relationships and foster advocacy.
