When running any type of business, it’s important to be aware of your average transaction value, or ATV. This is a measure of the average amount a customer spends during a single transaction and can be calculated by taking the total value of sales over a specific time frame and dividing it by the number of transactions. Generally speaking, the higher the ATV, the more money you make from each individual customer.
Why is ATV important?
ATV is an easy to use key performance indicator and can be a very good way of measuring your business sales when selling online. Attracting customers to your ecommerce store can prove difficult, costing money on marketing and promotion, so you really want to make the most of each customer that visits. By understanding how you can build up a customer’s basket and increase ATV for every customer, you should generate a higher return on investment while also effectively managing your marketing and promotional costs.
How to increase ATV?
Increasing ATV can prove to be difficult, especially for eCommerce stores where there is no physical salesperson involved who can upsell. As such, learning about ATV and how to increase it may present a steep learning curve for those unused to the more subtle nuances of web design, behavioural economics and customer psychology.
However, there are a number of easy solutions that your ecommerce website can take:
1. Introduce complimentary products
Using the old ‘do you want fries with that?’ technique has worked wonders in the fast food industry and the same techniques apply for eCommerce. Offering your customers additional products that go hand in hand with the purchases they are making will increase your ATV.
2. Offer bundle deals
Sales and promotions can also drive ATV, if done in the right way. Offering customers money off when they buy more than one item will not only encourage them to buy more; but will help to build their basket and increase your ATV figures at the same time.
3. Get some assistance!
Managing your eCommerce site can be difficult, especially when it comes to correlating effective web design with boosting ATV. Any mistakes can prove to be disastrous, seriously affecting your sales, brand and business. As such, it is well worth considering getting outside help, to ensure that you are making the right decisions for your business needs.
At Creative Digital Design, we pride ourselves on offering a wide range of digital marketing assistance, specifically tailored to suit your business needs. For more information about how we can help you to grow, please contact us!