Customers who love to spend are not a rare species. Cultivating strategies to suppress inhibitions and leading them back to the path of indulgence is an unprejudiced motive. A good marketing team will never overlook the importance of the Average Order Value (AOV). It is an important metric that can dictate revenue generation.
Average Order Value
The average amount a customer spends on an order is termed as Average order value. It is a clear indicator of the performance of your e-commerce store. Calculating AOV and tracking customer-specific data will assist you in decision-making processes, increasing profitability & especially in the case of a first-born business.
Increasing AOV
An increase in the Average Order Value is a result of multiple concurrent strategies that are simple and cost-smart. These strategies play with both logic and instinct. Bigger the basket, bigger the profit.
Holy Grail Strategies
You will notice the following strategies resurface in almost any article you read on the internet about tips on increasing Average Order Value – That’s because these textbook tacts truly work!
Free Shipping Threshold
No one likes to pay for shipping. When your store offers Free Shipping Above $$$ customers will add products that they may or may not need to skip shipping charges. It can involve an increase in the number of products added to the cart or purchasing a product that was being eyed on for a long time. Customers will re-look for products even if the shipping cost is relatively negligible.
The display of the Free Shipping Threshold should sit responsibly in the header of the storefront or on the cart page. You can add it even before checkout.
Strategic Discounting
Your e-commerce store could be harboring multiple brands or selling products that are closely linked. You can witness an increase in the Average Order Value with discounts that are perceptive of consumer behavior. Strategic Discounts can convince hovering customers to commit to a purchase.
Fixed Order Value Discount
30% OFF on a cart value that exceeds $$$ – This is a classic AOV strategy that can be tweaked to excite a customer.
Discounts On Bundles & Kits
Considering the purchase history of a customer, discounted bundles and combos show consistent success
Upselling
A 100ml shampoo vs 400ml of the same shampoo with a slight reduction in price. You’ve got your loyal customer investing. They make unexpected purchases because they got a good deal.
Cross-selling
We talked about customers who love to spend. These customers are also susceptible to buying products that “work together” or happen to stand under the same umbrella. Cross-selling is a catalyst that marks the difference between a buy vs a haul.
Under-explored Strategies
When trying to increase Average Order Value the unconventional methods that exert soft power on shopping habits should be a topic of discussion. However, these strategies are tricky to hack, the industry that your e-commerce store operates on will also be a decider of the result.
Temporary Down-Selling On Items Before Checkout
A myopic shopper will have a list of products that have managed to gather their interest but with no transaction. What if these products that used to be $$$$ are $$$ before checking out. Impulse begets intentions. It is difficult to ignore the novelty that these products present even with tunnel vision.
Sell Personalized Collections
A limited-edition kit in collaboration with an influencer or products never to be found anywhere else. This appreciation for the niche subculture market derives benefit for your business.
Offer Gift Wrapping & Delivery Instructions
Provide the buyer options to add gift wrapping and to mention delivery instructions
Offer Discretion
Offering discretion on the packaging, for consumers who value privacy will create affinity towards your brand.
High-Value Customers
Identifying high-value customers is necessary as they are the metaphoric low hanging fruits.
In all likelihood, increasing the Average Order Value of new customers is not an easy task. Added to that, the cost of acquiring new customers is higher than gauging out profits from pre-existing customers. Learning the buying patterns of customers who’ve stayed loyal is equivalent to mining gold data.
High-value customers readily buy more. Their approach is not phobic or too cautious, they do not mind spending time touring your entire store. High-Value Customers also seek high-value experiences. Loyalty programs help validate their relationship with your store.
It is a win-win situation when campaigns are curated for customers who would willingly indulge in a shopping spree.
- Capitalize on Your Store’s Best Sellers
- Set up Retargeting Campaigns with Discounts
- Enhance Personalization on Offers
High-Value Customers might sometimes abandon their carts and tools for recovering abandoned carts help boost sales otherwise lost.
Geared Coupon System
A Coupon Management System that is receptive, robust, and uncomplicated can perk up humbling sales. It is a vehicle to communicate and reward customers.
Starting from seasonal discounts that can even appeal to on-again off-again customers, a geared coupon system helps meet marketing goals, not just slash prices robotically.
- Brand-specific SALE
- Coupons available only at checkout send customers back to look for more products
- Time-sensitive ‘soon to be expired’ coupons
- Digital Gift Cards
Your products will be seen as trophies when it is diligently scooped by customers.
Cart Page Optimisation
Your cart page presents the final proposal of encouraging customers to increase the Average Order Value. An ensemble of products that adhere to the ones already in the cart can be sincerely inviting. You can optimize your cart page without adding information that is cognitively demanding.
Order History Recommendations
- Items “You Forgot” with periodically purchased products or items from a previous order
- Show wishlisted products right below the products added to the cart
- Add “Save for later” option
- Scroll down for products that “go together”
Visual Harmony
The plug-ins and add-ons used in the cart page should work in the favor of your store. It should guide the eye and never suffer from poor design.
Reputation Management
Online shoppers are acutely aware of the image your brand has fostered. You are being heard, stalked, and talked about. A pool of User Generated Content (UGC) can help customers to reside and feel like part of an online community. Crisis Management and Reputation Management are important paradigms.
- Social proof your business by providing responsive customer support
- Resolve queries, diffuse and address complaints on social media
- Create a community of appeased shoppers with positive feedback
- Offer explicit information about your return and refund policies
Conclusion
A cocktail of strategies are employed for increasing the Average Order Value. Planning is not a passive process. AOV marketing is both sustainable and highly result-oriented, its significance impacts every other arena of your business.