The Spend per head is the amount of money that each customer spends with you per transaction.

Usually the amount of work you need to do increases with the number of customers that you have, but if you can persuade the same customers to spend more, you will increase your turnover, without increasing at the same proportion the amount of work. This makes you more productive and more profitable.

If you sell your bouquets at £30 and you need to make £150 this week you need to sell 5

If you sell your bouquets at £40 and you need to make £150 you'll beat your budget if you sell 4

Increasing prices is one way of increasing spend per head, but you can also

Add on value : e.g selling your bouquet in a vase rather than a simple hand tied
Getting a better value price for upsizing the order, (think Supersizing in Macdonalds)
Sell a wider range of products so they will buy more at one time

Often the way to increase spend per head is just to give those customers you already have more information about what other services and products you offer, so they will buy from you again.

We’ll talk more about communicating with customers regularly in our Permission marketing section of the course.