Some people say that size doesn't matter, but when it comes to growing your business and increasing revenue, your basket size is very important.

What is basket size?

Simply put, basket size is the number of products your customer pops into their shopping basket before heading to the checkout. 

To increase your average basket size and value, you'll either need to convince your customers to add more items to their basket, or add more expensive items. Buy more, or buy bigger!

How to increase basket size in retail

Increasing your basket size will impact your bottom line and expand your business by encouraging customers to spend just a little bit more per transaction. Here are our top 3 tips to increase your basket size and value:

1. Customised product recommendations

Sometimes your customers will be so focused on buying one thing that they neglect to browse around to find other products they want to buy. Sure, you can just sell them what they want to buy, but with some smart recommendations you can sell them what they were not expecting to buy. Show them what they want - they just don't know it yet.

• Make your customised product recommendations based on users' current shopping cart items on checkout pages. 'Customers also bought...' and 'You may like...' are simple but effective ways to showcase personalised product suggestions
• Use customised product recommendations for cross selling and up selling (remember: buy more or buy bigger!)
• Suggest product bundling by creating product sets that make sense. This is a great way to create value for your customer while also increasing the number of products in their basket!

2. Loyalty

Everybody loves to feel appreciated. Show some love to your biggest fans with a loyalty program or rewards for frequent shoppers:

• Freebies
• Exclusive VIP sales and first access to products
• Points system to encourage more spending

Reward your big spenders and you'll be on the right track to forging better relationships with your best customers. Selling more to your existing, most loyal customers is the most cost-effective way to increase your average basket value - they already know you so all that's left is to get them to spend a little more.

3. Free shipping!

Everybody loves free shipping. Drive up your average sale price by setting a target slightly higher than your current average sale price, and offering free shipping when a customer hits that spend target.

Setting order minimums to receive free shipping or other discount is a straightforward way to offer immediate value to your customers, and encourage them to put just one more thing into their shopping cart.

Time to get flexible

One final piece of advice for increasing your basket size is to be flexible with payments!

At the end of the day, a customer is only going to be able to spend as much as their budget allows. Offering flexible payment options like Buy Now Pay Later solutions will allow your customers to buy more of what they want while staying within their budget.

With Latitude Pay, your customers can pay for your goods or services in 10 weekly payments. That means they'll be able to buy the shoes and still be able to enjoy their fancy avo toast in the weekend.

We discovered that since 2017, our merchants saw a 28% increase in basket size across their online shoppers. So on top of using our 3 tips, offering Buy Now Pay Later is proven to improve your basket size!

More time to pay, more happy customers. It really is that simple.

Ready to introduce Buy Now, Pay Later for your customers?

With no fees on transactions of $250 and under, LatitudePay is the perfect place to start!