I see posts talking about the need to maximize every sale, given the operating environment.
This belief is underpinned and even amplified by a statistic that over 70% of the people who use your business will only use it once.
Why not maximize the profit per visit, it is argued. Drive up AOV/average check.
Please be careful with this. Specific channels, occasions, or offers? Sure.
But as a holistic approach, I think it’s short-sighted.
The number one thing you have to drive future traffic from is your current traffic.
Why is this?
With every use, you refresh memories that will put you in a better position for the next time that person is in a similar buying situation.
Use creates the opportunity for future use.
So, with all the add-ons and upcharges, you might be repositioning yourself according to the kind of occasion(s) you can serve.
Only you can decide if that’s good or bad.
But it’s going to happen.
If you do choose to go down this path, a couple of thoughts:
1. Do not actively sell. Rather, let the customer self-select into the option. Customers will be far more critical of a poor experience sold to them than an experience they self-selected into.
2. Relatedly, only offer upcharges/add-ons that you know lead to really good experiences or outcomes.
More broadly, get really sharp on your price points and use promotions to drive incremental traffic.
I realize this is a balancing act between the short and long term. And that the argument goes that if you don’t have the short you don’t have the long. But the other side is just as true, it’s just harder to immediately see.