Knowing the average ticket of each business is a good management practice that companies simply cannot ignore.
It is, in fact, a valuable performance indicator that will determine the next necessary steps to be taken by managers.
After all, how can you direct efforts without understanding the financial health of your business?
The average ticket is, therefore, an essential performance indicator (KPI) within this mission.
But, after all, what exactly does this mean? More than that, how to calculate it and what actions to be able to increase it in sales?
We’ll talk about that from now on in this article.
We hope to be useful and didactic so that your business is always well and that resources and efforts can be directed towards growth.
Let’s check it out?
What is an average ticket?
We must understand average ticket as the amount spent, on average, by each customer within your business.
This within a given period and regardless of whether or not a company operates in a virtual way.
This is a critical sales metric. It is through it that it is possible to analyze, for example, which services or products have the greatest output.
When this number fluctuates, it is quite possible that the solutions sold can gain or lose value in relation to the market and customers.
Because of that, mastering your numbers and understanding the whys make an assertive decision-making easier in any business.
After all, you will know the reasons for a possible devaluation and what steps are necessary to reverse this situation.
One concept, many applications
To understand this concept more assertively, let’s think about it in two different ways.
When we talk about sales, the understanding of the average ticket matches the number of opportunities won.
And, for companies that adopt activity-based sales, it is the way to evaluate the performance of the sales team.
Not only to hit the goals and objectives of the month, but also to analyze how effective the company’s upselling strategy is.
But, there is also the possibility of understanding what an average ticket is, taking into account the size of the customer base.
This occurs by identifying the customers that are most important/strategic for the business and those that are most profitable for the organization.
How to calculate the average ticket?
The calculation to arrive at the average ticket is actually quite simple.
In order to arrive at the numbers, however, it is necessary to know two other values: the total invoiced and the number of orders.
Ah, important: set a review period for this. Generally speaking, it takes one month to perform this calculation.
With the numbers in hand, divide the billing by the number of orders.
Before we get down to business, let’s define some fictitious values to make it easier to understand.
- The company’s monthly billing: R$ 200,000.00;
- Orders placed in the month: 250.
That said, it’s time to get to the number. The calculation is R$200,000 / 250 = R$800. This is the average ticket for the month.
Keep an eye! Monitor ticket value constantly
As we said and we emphasize again: this is a very important indicator. And, therefore, it is necessary to have monthly control.
After all, it is through this metric that the marketing team, for example, will focus efforts on generating leads for the sales sector.
The goal, in fact, should always be to positively impact CAC and LTV in companies.
Success in this mission involves attracting customers, within the ideal customer profile (ICP) of each business.
More than that, it is necessary to have tools that help not only in monitoring but also in decision-making.
How to increase the average ticket within companies?
If the goal is to make your business’s customer more profitable, then you need to roll up your sleeves.
There are several strategies to increase the average ticket – simple and/or complex.
We have separated, below, some actions that can be taken with this intention.
Some are more suitable for companies with eCommerce, others with an inside sales model l.
To make the customer spend more, why not offer them some incentives?
In e-commerce, a good way is to offer free shipping for purchases above a specific value.
After all, even for the customer it will make more sense to spend the same amount adding an item than paying for shipping, right?
But, of course, you need to understand your profit margin and also the expenses with logistics to arrive at something that makes sense and is profitable.
Especially when it is a planned action for cart abandonment in ecommerce.
If we think about B2B sales, in companies that have MRR, a good way to encourage spending more is through a discount.
That, of course, as long as you don’t compromise what you need to raise.
It can be either for cash payments or for joining the annual plan.
So you will do 2 actions in 1.
It will increase the average ticket placing more users inside and, in the case of the second option, it will be successful in the mission of how to retain customers.
Suggesting items related to that purchase is another effective way to increase the average ticket – and it can also be related to the previous one.
If, on the website, the customer selected a soccer ball, list products such as football boots, socks, shirts, among others.
In SaaS sales, see other products or integrations that make sense. That will add value to the user experience and ensure customer success.
Show how this complementary service relates to the original purchase and, if possible, offer this combo at a discount.
Increase the price
Or, you can simply increase the price of the product and/or service the company sells.
This, obviously, will contribute to the increase in the average ticket.
But be careful. A thorough analysis is needed to propose a price that is fair, both for consumers and for the company.
Values cannot be above what your customers can pay, nor what the market practices.
Therefore, strategies such as SWOT analysis and BCG matrix help to identify business strengths and weaknesses to understand whether it makes sense or not to raise the price.
Sell value in speech
This is one of the best ways to increase the numbers that the customer leaves in the company. However, it demands constant improvement in the sales process.
Selling value in the sales discourse, especially within the inside sales model, is to show why the offered solution is a must.
How it responds to the “pains” the prospect has. If you sell a platform, tell how the “X” functionality fixes the “Y” problem.
Have some mental triggers, recorded within the sales playbook , to speed up the sale.
Understand: before offering a discount, you need to show the customer the value of what you sell.
That’s why he needs to accept your offer – and not just for a discount.
Even because, if this is the reason for “acceptance”, the chance of churn later (this for companies that sell subscriptions, of course), is great.
Focus on larger customers
Focusing on customers with greater purchasing capacity, when carrying out an active prospecting, can be a good alternative.
This, however, needs to take place within the persona that has to do with the business.
The marketing team needs to communicate better with these people. Know where they transit and how they can be impacted.
For this to work, however, it will be up to the commercial manager – together with his team – to have a sales pitch aligned with this profile.
More than that, for those who sell services, focus on an “enterprise” plan. More complete and therefore at a higher cost.
Going back to the previous one.
Being able to reach those who have greater purchasing power to spend with your company and selling value in the sales pitch, it is much easier to be able to increase the average ticket in a much more effective way in any business.
After all, you won’t have to give up any amount to receive and, as a bonus, you’ll be able to reach customers with great potential.
If he has positive experience of it, he can become a brand evangelist and, consequently, refer new buyers to you.
And when that happens, we will have, without a doubt, an ideal scenario for any manager.
So, how can we help you?
Enjoy and read two articles that will help you a lot.
The first one talks about what CAC is and why this value has to be as low as possible in companies.
The second covers some rapport techniques to be applied in the commercial area.