10 Ways to Boost Your Customers’ Average Basket Size
Posted by Alex Samuely on Oct 17, 2023
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As retailers invest in expanded omnichannel shopping options to reach wider audiences, consumers gain access to more inventory than ever before. This gives brands the opportunity to leverage various strategies to increase shoppers’ average basket size – and boost their revenue.
Retailers can deploy many tactics to encourage shoppers to spend more in a single transaction. Additionally, consumers who increase their average basket size by purchasing extra items may continue buying those items in the future. This lessens their chances of shopping at a competitor and enhances the likelihood for future repurchases.
Average basket size measures the number of products sold in a single purchase. To calculate average basket size, divide the total number of items sold by the number of transactions.
This metric helps brands track their overall performance. It also tracks the purchase rates for individual products, which can help retailers determine which merchandise is selling well and which isn’t.
Average basket size differs from average order value (AOV). Average order value measures the median amount consumers spend in each transaction instead of the number of items they purchase.
Read below for several ways to increase shoppers’ average basket size while building customer loyalty.
Retailers that increase customers’ average basket size will benefit from earning more revenue via fewer transactions. Therefore, they must roll out strategies to make the additional purchases worthwhile for consumers. This includes the following tactics, which all help support an omnichannel selling experience.
These retail techniques enable store associates to drive more sales based on tailored recommendations. Upselling provides customers with reasons to buy higher-margin items. As an example, associates can upsell by showing customers a high-end jacket instead of a last-season jacket currently on sale.
Cross-selling is the act of recommending a complementary product to a customer – typically from another category. For instance, a store associate may suggest a workout top to match the style of leggings that a customer wants to buy. Retailers can leverage upselling and cross-selling tactics individually or in tandem to grow their shoppers’ average basket size.
Retail associates can also leverage upselling during one-on-one personal shopping appointments. If a customer likes a specific product, the store associate can bring higher-end versions of that product to the fitting room. This results in shoppers receiving a personalized experience while gaining exposure to items they may not have initially considered.
One-on-one shopping appointments can help grow customers’ average basket size by giving them an opportunity to visit a brick-and-mortar store and see the inventory firsthand. Consumers may not be able to envision how products look and fit on them when shopping online. However, experiencing a personal styling appointment – where the store associate can show complementary products, colors, and styles – may prompt them to buy more on the spot instead of putting items in their online shopping cart for later consideration.
Retailers can also target shoppers who aren’t available to visit for one-on-one appointments by engaging in clienteling or remote selling. Store associates can reach out to loyal customers or a segmented list of customers via text or email about new arrivals or to make recommendations. Generally, these are folks with robust customer profiles – containing information such as preferred sizes, past purchase history, etc. – which makes it easier for associates to identify outfit building opportunities.
These types of interactions may sway an undecided customer on making a purchase – or even surprise the shopper with items they may not have stumbled upon themselves – resulting in the customer buying more items.
Brands can enhance their omnichannel selling experiences and boost average basket size by offering a variety of retail promotions. They can mix and match promotional tactics based on the desired length of time for the promotion.
Examples of retail promotions include percentage discounts (which advertise a percentage off a particular product, such as 50% off swimsuits) and free shipping options. Other examples comprise gifts with a purchase and tiered promotions (which provide higher discounts for purchasing more products).
Tiered promotions are especially effective in increasing average basket size. They motivate shoppers to buy more items in a single transaction to receive the advertised discount. They also enable the retailer to save on shipping costs, as they can bundle all purchased items into one package.
Buy online pick up in-store (known as BOPIS) enables customers to make purchases online and retrieve them at brick-and-mortar stores for free. It also allows them to pick up their orders quickly if the items are in stock – usually within several hours. Curbside pick-up also falls under the BOPIS umbrella. It allows shoppers to pick up their purchases by having a store associate bring them straight to their cars.
BOPIS and curbside pick-up attract shoppers by providing convenience without any shipping fees. If customers know they have limited time, they may choose to add more items to their shopping carts and select a BOPIS or curbside pick-up option to get more value out of their shopping trip.
Loyalty programs can help increase customers’ average basket size by incentivizing them to achieve certain rewards. This may include awarding members points for each purchase they make, which they can then redeem for discounts or free products. Other programs offer evergreen perks like free shipping with no minimum purchase amount. Loyalty programs may also feature personalized rewards, such as deals that coincide with members’ birthdays.
As customers earn rewards for their spending, retailers offering this tactic will reap larger orders while cultivating long-term loyalty.
Retailers should ensure they maintain inventory accuracy so that customers can access the most up-to-date products in stock. Brands can determine their inventory accuracy by dividing the number of products counted in a specific location by the number of items marked in the online inventory system.
Inventory accuracy enables store associates to spend more time recommending products or upselling services instead of checking which items are in stock.
It also helps track returns and exchanges. Therefore, consumers may choose to increase their average basket size if they spot a recently returned item that’s now available for purchase.
Retailers can leverage inventory accuracy to optimize their store layout. This enables them to feature best-selling products in sections with greater foot traffic. An optimized store layout may also include mobile point-of-sale devices stationed throughout the store to facilitate faster checkout experiences.
Additionally, this tactic helps brands become more strategic with encouraging add-on purchases. For example, an apparel retailer may display small-ticket items like socks, scarves, and other accessories next to the checkout counters. As a result, consumers who spot an enticing item may be tempted to add it to their overall purchase at the last minute – therefore increasing their average basket size.
The components of an endless aisle shopping experience can significantly affect shoppers’ average basket size. Endless aisle technology allows store associates to access and sell products from any brick-and-mortar location, distribution center, or warehouse. Consequently, it lets associates assemble an omnichannel shopping cart if customers want to purchase items directly from the store and from another location. For instance, if a shopper seeks to buy two shirts in different colors but the store only carries one of the colors, the associate can purchase the other color from a warehouse and combine both items into one transaction.
Ultimately, this technology makes it simpler for store associates to increase shoppers’ average basket size by offering access to inventory in multiple locations.
A product bundle or kit is a sales strategy that involves grouping and selling items together, often at a reduced price compared to purchasing them individually. These special offerings simplify the shopping experience for customers and serve as an incentive to encourage them to buy more. They may also introduce customers to items from your catalog that they may not have considered otherwise, thereby enhancing the versatility of your product range.
Some retailers provide bundles or kit promotions as a standard part of their business model, such as offering a discounted yoga mat or water bottle when a customer purchases a workout top and matching bottoms. Others use them for exclusive collections or during holiday seasons. Both of these examples are effective in increasing your customers’ average basket size, all the while optimizing your inventory management and boosting sales.
Retailers can use a variety of tactics to enhance customers’ average basket size. However, one of the simplest ways to achieve this goal is to leverage technologies like mobile point-of-sale (POS) solutions. Mobile POS enables brands to equip their store associates with mobile devices as they move throughout the store. Associates can then access up-to-date inventory and personalized data to make customized recommendations and upsell or cross-sell products.
Omnichannel technologies – paired with strategies like loyalty programs, retail promotions, and BOPIS and free shipping options – offer the best chances at expanding shoppers’ average basket size while providing a seamless customer experience.
Interested in learning how you can increase customers’ average basket size while growing a loyal audience? Reach out for a demo today.
