If you’re looking for ways to increase your leisure center’s revenue and profit, you might think getting new guests in is the solution. However, increasing your average order value will probably have a bigger impact on your revenue.
The average order value is the average amount of money your guests spend when they book an activity at your venue. The higher this average is, the more revenue and profit you’ll have.
This is a good reason to look into your average order value and how you can increase it. Increasing your average order value has to do with several things:
- How you sell and present your activities
- Upsells and cross-sells
- Guest retention
Understanding your current average order value
Before taking action on increasing your average order value, it’s good to know where you stand right now. Calculating your average order value is simple:
Revenue : number of bookings = average order value
For instance, let’s say that last month your revenue was €30.000 and you had a total of 500 bookings. 30.000 divided by 500 = 60. So the average order value was €60.
The average order value for Briq Bookings’ merchants is between €80 to €120. This means that with an average order value of € 60 there’s room for improvement.
6 tips to increase your average order value
1. Start selling your activities online
The first step to increase your average order value is to be bookable online. This will already lead to more bookings, because people can book whenever they want, but also gives you a lot of opportunities.
You can create different activity packages, offer upsell and cross-sell options and gain insights in who your guests are. This helps you create the right offers and target the right audience to boost your sales.
2. Add multi-activity deals
If you sell multiple activities to the same guests, the order value will be higher than if you sell a single activity. To motivate your guest to book more activities, you simply create multi-activity deals and add those to your webshop.
Not only do multi-activity bookings increase your average order value, they also increase the time your guests spend on location with break times in between activities. This results in opportunities for selling extras, such as food and beverages or coins for arcade games.
3. Use upsell and cross-sell options
A great way to increase your average order value is upselling and cross-selling. Over the past years, 35% of the bookings with Briq’s clients included an upsell.
In the booking flow, you show your guests extras they might be interested in. This could be another heat of go-karting, an extra hour of bowling, an upgrade of equipment or food and beverages.
It’s key to keep the upsells and cross-sells you show relevant. For example, for a kids’ activity it’s better to show soda and French fries as cross-sells, while for a bachelor party unlimited drinks are great.
4. Focus on group bookings
The more people visit your venue, the more revenue you get. With group bookings you serve multiple guests at once and it’s cost-effective, because you don’t have to spend time filling the same time slots and space.
Groups want to have fun with each other and are therefore more likely to purchase extras, such as dinner, drinks or coins for arcade, to complete their experience. This will get you even more sales.
5. Run promotions
Who doesn’t like discounts? Promotions can convince your guests to visit you. This could be a discount for their next visit or a discount when someone subscribes to your newsletter. To increase the average value, you could set a minimum amount your guests should spend when using the discount. This prevents you from missing out on profits due to discounts.
You can also think of giving a discount when someone books multiple activities – a “volume” discount. You can create packages with multiple activities and advertise in your webshop with the discount, like a free drink or X% off compared to when you book them as separate activities.
6. Introduce a customer loyalty program
Rewarding guests that visit you more often will definitely lead to a higher average order value. This is because returning guests are more likely to spend more money at your venue than new guests, because you build a relationship with them.
With a customer loyalty program, you can give them some extra attention. This could be with sending them customized activity packages through emails, a discount on their birthday or earning points that can be redeemed for a discount. You engage with your guests and encourage them to come back to you again.
Success story: The Kartfabrique
After the Kartfabrique started working with Briq’s online booking system, their turnover increased by 300% and their average order value grew from €80 to €120. Guests can now easily add extras to their booking, such as food, beverages or other activities.
Do you want to know how they did this? Read The Kartfabrique’s story.
Increase your average order value with Briq’s online booking system
Briq Bookings helps many leisure businesses all over the world to grow their business. With an online booking system you’re able to sell your activities 24/7 through your webshop and you easily add upsell and cross-sell options to the booking process.
Would you like to know how Briq can help you grow your business? Feel free to get in touch with us.