Here's one short exercise that can drastically improve revenue.
One small business that followed it grew revenue by $2,500 per week, with a nice bump in cash earnings. Plus, the gain will be made for many years to come.
It’s possible you could do even better.
Today’s exercise takes about 3 minutes to read and an hour to put into action.
Let’s get into it…
Would You Like Food With That?
Many business owners leave money on the table simply by forgetting to use simple cues to increase average order values.
In some cases, lots of money.
My favorite example to use is a coffee shop.
Every time a customer orders a coffee, this should prompt the server to ask, “Would you like food with that?”
In my experience, one in every five customers will say “Yes!” and proceed to order some food.
Let’s say the average food item is worth around $10.
That’s $10 more on 20% of transactions, or $2 more per order on average.
If the coffee shop serves 250 customers a day, that’s an extra $500 per day!
It adds up to $2,500 a week!
And $130,000 per year.
Yet I think only 1 in 10 coffee shops I’ve been to have prompted me to order food.
When I’m hungry and I don’t know it, I’m happy they asked. When I’m not, I’m happy they thought of me and offered me food (people LOVE being offered food).
This works equally well in the online world too. When customers are checking out their shopping cart, offer them the option of adding similar products. Ones that supplement the products they are already buying.
Using Simple Cues to Increase Average Order Values
Here’s how to do it:
- Find the point in time where your customers might add to their order
- Determine the most useful product to offer customers as an add-on at this point
- Simply offer customers the option of adding that product
- Train all your staff to do this, on every transaction
It’s a simple and powerful exercise.
The trick is to make sure you and your staff remember to do it.
On EVERY SINGLE TRANSACTION.
This means employees need to be trained and reminded to do it.
There’s lots of upside to be gained in finding these high leverage customer touch points and simply asking a question or offering a useful product.
Get to it.
I hope you have had a fantastic week in business and in life. Now go keep doing the small things that add up to a big difference for you and your business.
But wait, before you go…
We all know that small business is about doing the little things right.
The little optimizations, the high-impact tweaks and the 1% gains you can make to your business to make it a little better, a little more profitable and even a little bit more pleasant to run.
I have interviewed 500+ business owners, surveyed thousands more, and I am always probing for their best tips, tricks and hacks to improve their business. There are three that stand out above the rest and I want to share them with you.
Join my email list for free and I’ll send them to you right now.