Average Check: What It Is And How To Increase It?

Average Check: What It Is and How to Increase It?

by Micah James — 2 years ago in Business Ideas 2 min. read

The phrase “increase the average check” is heard in almost every advertisement for Internet marketing courses. But this indicator of sales efficiency is also relevant for offline. Switching from Wix to Shopify will not increase your average check, but it will definitely increase the number of customers.

The Concept of “Average Check”

In fact, it is the amount by which a customer buys goods or services from you at a time. You can determine the average check of the whole business, and you can use a separate group of goods, branches, or departments of the enterprise. Of course, this requires appropriate financial accounting.

How to Calculate?

The average check per day = earnings per day/number of checks per day.

You can also calculate the average check for a week or a month. However, a one-time calculation does not give an understanding of the state of affairs, it is necessary to analyze the dynamics of the average check. By tracking how this figure changes over the months, you will see seasonality and other factors that affect sales.

Also read: Best Video Editing Tips for Beginners in 2022

Why Do You Need This Indicator?

The average check shows the state of your business. Both on its own and with other indicators, it provides answers to many questions, including:

  • how solvent your client is;
  • do you have a sufficient range of goods;
  • whether the system and sales managers work well;
  • whether the action you are conducting is effective;
  • the period of high and low sales season;
  • from what amount customers should be given discounts or bonuses;
  • which group of goods or services do customers buy the most.

Here are the top 5 effective ways to increase the average check:

  • cross-selling + up-selling;
  • implementation of a loyalty program;
  • determination of the threshold for free delivery of goods;
  • formation of sets of goods or services (bundles);
  • introduction of discount coupons for a limited time.

In fact, it requires less investment than, for example, traffic growth or attracting new customers offline.

Cross-selling and Up-selling

It is better to combine these two methods into one category.

Up-selling is an offer to the buyer of a more expensive, refined, the premium analog of a product or service. For example, a more modern model, a well-known brand, a new trendy service, or a dish made of organic products. This method is appropriate if you have a range of goods or services with a wide range of prices.

Cross-selling involves cross-selling when the customer is offered related products and services during the purchase. This method is suitable for any business: online and offline applies to both goods and services. Of course, the range should include these related products.

Most businesses use cross-sell technology. You buy a product, and you are immediately offered to buy something auxiliary to it. A classic example: the phone offers a case, headphones, protective glass, and a power bank. In this case, we do not sell something that a person does not need but help him protect his new phone, conveniently listen to music, and charge it on the go. This is the most organic way to increase the average check.

The main advantage of the method is its versatility. Disadvantages may be due to poor work of consultants, sales managers, waiters, so you need to invest in staff training.

Micah James

Micah is SEO Manager of The Next Tech. When he is in office then love to his role and apart from this he loves to coffee when he gets free. He loves to play soccer and reading comics.

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