Page 95 - Spring Into Markets

Using ATVs to increase customer service and profit
By being aware of the ATV and by increasing it you will be achieving two principal business goals:
1. Improving customer service
2. Increasing profits
There are two broad methods you can use to increase ATV.
One way to increase ATV is to trade customers up, i.e. sell them a product at a higher price point. Whilst this is part of the answer it does not necessarily mean you are providing the best customer service and maximising profit.
The other is to sell more to your existing customers, i.e. customers buy two items instead of one, therefore the transaction value increases. There is an added benefit to this method. The ‘icing on the cake’ — by selling more and ensuring the customer makes a full purchase, i.e. buying all they need, you will increase the ATV and you will also have provided good service.
Imagine a customer is decorating their house and leaves the shop with the wall‐ paper but not the wallpaper paste. That will be one unhappy customer! Another unhappy customer will be the one who did not know the product they have just bought was on a 3 for 2 promotion and had they bought two, they would have got another free! Making sure that customers make a full purchase is good service.
These sales are known as add‐on or linked sales.
To ensure that you are providing excellent customer service always tell customers about new products, promotions, ranges, suppliers, recipes, flavours! Actively encourage an additional purchase — not only will it better satisfy the customer,
it will increase your ATVs!
Whilst you are extra busy at peak selling times, it is often the time of day/year when the customer has the least amount of time, e.g. lunchtime/Christmas.
Often customers will give up waiting to be served or they will ask for the single item they need because they do not have the time (or inclination) to search your stall or ask you for anything extra — equally, they may not have even considered what else they might need in their rush to complete the purchase.
Guide 13 Monitoring Performance 95