When pulling reports from your business, there are a number of KPIs (Key Performance Indicators) that help you better understand your business, set benchmarks, and achieve your goals. In this article, we take a look at one KPI in particular, average check size.
Average check is measured as the total number of sales divided by the number of guests. This is an incredibly important metric that helps you understand the value of your customers, performance of your workforce, and successes of your offerings and services.
Whether it’s measured daily, weekly, monthly, or year over year – it’s important to implement strategies to increase your average check size over time.
Combos and Bundled Orders
Business Insider reports that on average combos account for about one in four of customer visits to quick-service restaurants. And massive fast food chains like McDonalds, Starbucks, and Wendy’s have long championed this concept. To increase average check size, you can simply combine menu items, like a burger, fries, and soda as a package deal to incentivize larger orders.
Add Premium Products
This taps into the psychology behind pricing strategies. By introducing higher priced premium products you are setting a new perceived value of your medium and lower priced products. This enables you to slightly increase the prices on your most profitable ‘mid-tier’ products, without turning customers away.
In a similar vein, discounts can be used to drive traffic and increase sales. Optimize your discounts with targeted pricing that can be based on variables like volume, promotions, or customer groups.
With intelligent Point of Sale technology, your POS can crunch the numbers so you don’t have to. The POS can determine the difference between the sum of the qualifying products and the re-price value. Then, it applies that difference as the discount to the most expensive product on the POS, ensuring discounts are optimized for your success.
Pizza Sales reports that the average online pizza order is 18% higher than orders by phone. Average online check sizes are generally higher than in-store check sizes because online websites can personalize their upselling and cross-selling items to ensure that shoppers’ online baskets are full. Also, when consumers purchase from a person, some psychologists say this makes them purchase less out of guilt or fear of being judged.