Increase Spend Per Head With These Simple Yet Powerful Tips!


Spend per head is defined as the average amount of money spent by a customer visiting a shop or consuming certain set of services. SPH is a great analysis tool which help businesses understand their consumers’ spending behaviors and work on developing and implementing strategies that can positively effect this number.

Large retail chains like Toys 'R' Us, The Entertainer, Hamleys, Walmart, Smyths, Argos and many others aim to increase SPH, and the same applies to most toy companies as well as distributers making it an important figure that almost every element composing the supply chain is concerned about.

So here are some simple yet powerful tips you can apply to the business based on your role whether as a toy retailer or a toy manufacturer/ distributer in order to increase the SPH figure:

  • Offer exclusive items! Customers tend to buy the product when they know it is a limited edition or available for a limited time only as this gives them a positive psychological boost and an extra advantage over their encounters because they own something the other group doesn’t! Examples: Trash Pack, Shopkins & The Spinning Tops BeyBlade.
  • Set the right price and offer different SKUs with different price points. It’s important to make sure your product pricing is not too high nor too low in comparison with other similar offerings as consumers choose to buy the product with the best value. Also having low-med-high price points will give different types of customers including the price conscious ones options to purchase from your brand (this might not apply in case the company has chosen differentiation focus as their competitive business strategy). Loom bands applied this smart strategy in order to increase sales volumes and expand consumer reach! And guess what? they became the craze for one full year!

  • Communicate your complete offerings and product range. Some brands offer fantastic range of products and the only reason they are not reaching the desired sales goal, is because consumers just don’t know about it. Simple solutions for this can be: 1. Printing a leaflet or a flyer showing the entire brand range 2. Inserting a mini product catalogue in the packaging (associated with the product) 3. Designing POS material to demonstrate the product range 4. Posting a soft copy of the product range leaflet on social media platforms, all these steps can create further consumer awareness and drive your sales. As for collectables one of the best ways to soar sales is to: 1. Have a display stand at store level showing all available items 2. Printing an interactive brochure/ leaflet in which kids can tick a box each time they have added a new item to their collection and post their progress on social media (just as an option) 3. Develop an item within the product range which kids can buy to collect the complete range & display it, this makes kids feel the urge to gather the full range in order to fill the display piece they have purchased. Example: Match Attax Binder is used in order to collect all the playing cards and it also has allocated pages within the folder to demonstrate the complete range.
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  • Create catchy and clear POS material to communicate the brand message or any promotional campaign like “Buy 2 Get 1 Free”, “Special Eid Promotion”, etc. Moreover, POS material can also play a big role in driving sales when messages like “Limited Edition” or “Top Sellers” are clearly mentioned. Another great usage of POS when marketers use them to educate customers on the product range. Fisher Price POS material is a great example of a brand, which educates parents on choosing the right product for the right age group. Even a new parent can easily choose from among the range once they take a look at the info mentioned on the POS even without having previous experience!
  • Create a welcoming happy atmosphere at the store; sales people at store level are extremely important to the business “extremely”. These team players have the power to shape consumers’ experience and overall perception, they also have the power to boost your sales or lose customers to other happier businesses. Thus, it is very important that sales people are trained to deliver happy moments for kids and families ensuring that they spend more time at the store and feel comfortable to roam around and buy more products. Saluting Hamleys as a FUNtastic toy retailer delivering amazing customer experiences and successfully uplifting kids and families’ spirits. It’s really nice to see that both adults and kids like to enter Hamleys!
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  • Educate your sales team about the products, services, current and future promotions and events. This has great effect in understanding and meeting customers’ needs by offering the right set of products and services in the right time. In addition to that, sharing with customers the promotions or events taking place can also influence purchasing decisions. Think about it, sometimes you go to a store to buy one product and when you know there is a promo, you might take a bundle instead. (I do that sometimes, okay most of the times! Unless I am on a strict budget!)
  • Encourage sales people and promoters to sell products by offering them exciting incentives! Employees can go the extra mile if you create a motivating incentive scheme for them to do that. Moreover, initiatives like employee of the month and other recognition programs are key components for consistent and high performance. And by making your team happy you will make your bottom line soar. Management Guru "Stephen Covey" states it beautifully in his well known quote!
  • Offer new ideas & reasons for customers to buy through your ATL & BTL communications, examples are “The Perfect Gift or (Gift Card) to your beloved ones”, “Play and challenge your friends”, “Connect with your kids”, “Make this summer fun with our new outdoor toys”, “Beat the heat”. Such messages trigger new ideas and motives in consumers’ minds to act upon. Most family entertainment centers offer this option in which you can load a card with a certain amount of money and give it as gift to family members and friends. Also during Eid or Christmas we see some toy companies creating special toy bundles as special gifts to offer it as an added value to kids and families.

Most of the above ideas can be implemented in short span of time and some requires very minimum efforts! So starting from today, take time to think which tactic suits your business the best and is aligned with your goals, plan and apply small changes that can make a large difference into the business and reflect positive results on your numbers. Remember: "Even if you are doing great, always go the EXTRA MILE!"

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