Do you know what your ATV is and how to increase it?
If I asked you, right now, to tell me your ATV could you?
Not sure what ATV even is?
ATV stands for Average Transactional Value and is one of the key metrics used by retailers. Whether you sell products or services , knowing you’re ATV can be the first step in increasing your revenue.
How so?
Too often I see small biz owners get obsessed with chasing the new or only focusing on the Awareness stage of the buyer cycle.
The magic happens later in the buyer cycle, specifically at the Post-Purchase/ Advocacy stage. If you can tweak your marketing messages and customer journey to increase —even slightly— your ATV what could that do for your business?
Would you still feel the need to constantly be attracting more more more customers & clients OR would you be able to connect on a deeper level with the people who already buy from you?
Unfortunately, many small biz owners treat their customers and clients like a one-night stand. Thanks for the sale #Byyeeeee, you won't ever hear from me again! They spend next to no time on their post-purchase strategy and ALLLLLL the time on building awareness.
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When was the last time you spoke specifically with people who have already bought from you? Do you send regular emails telling them about X or Y that works with what they have already bought from you? Do you let them know about your new services, add ons or new product bundles? Are you getting in touch on a frequency that suits them (i.e. you bought this candle X months ago, it would be time for a new one or, you ran a workshop with us X months ago and did you want to follow up and run that again for 2020?).
Here are some examples of how you might increase your ATV:
Let's say you run a graphic design business, predominantly offering visual branding kits for people. In the last month you had 5 clients and make a total of $5000. Your ATV for the month would be $1000 (i.e $5000 divided by 5). You looked at your whole year and you had 30 clients and made a total of $90,000. Your ATV for the year would be $3000.
You could then assess that this past month hadn't been fantastic, in terms of your average ATV. You could also have a look at what you could do to help change that.
You may then look at what you're offering and decide you could create add-ons (i.e. some templates in Canva they can then tweak for an additional $X) or bundle items (i.e. get my branding kit + a 1-hour video call to go through it with you for $X (which is cheaper than if you bought both of those services separately)).
Likewise, let's say you run an eCommerce store specialising in leopard print sleepwear. In the last month you have had 45 purchases totalling $3,105. Your ATV is roughly $69 (i.e., $3,105 divided by 45). How might you increase that?
Again, you might offer add-ons, i.e. gift wrapping, eye masks, socks etc. All cheaper, higher-margin products that will increase the total check out price. You could also bundle items (i.e. singlet + PJs for $X) or you could create a perception of greater value (i.e. spend $10 more to qualify for free shipping). All of these are aiming to work with the customers you already have, rather than focus all of your attention on getting more customers.
This is not to say you ignore other stages of the buyer cycle, but instead that you don't forget about the people you are already serving.
Are there small tweaks you could make that would increase your ATV? As we head into the "silly season" when intention to purchase is at an all time high (and before fatigue sets in early 2020), ask yourself: How might I make small changes that will add up to create a bigger impact?
If creating a marketing plan that speaks to the above is something you need help with, then get your skates and join my Marketing for Your Small Business course. You can see more about it and enrol here. Any Qs, simple DM me on the gram or hit reply.