Ways To Increase Average Order Value
Ways To Increase Average Order Value: If you are an E-Commerce store owner, one of the first things on your mind would be to figure out a way to increase your average order value(average amount of money each customer spends per transaction with your store).
Thus, Average order value(AOV)=Total revenue / number of orders
So in order to increase AOV, here are 5 things you can look to do:
Provide product recommendations
Be it popular products or products other consumers have bought along with the one they are purchasing now, product recommendations provide users great incentive to buy more and increase the purchased ticket size.
Further, you can also provide your personalized recommendations as well, to move slow-moving stocks as well!
Cross-sell complementary products
Much like product recommendations, cross-selling products that complement the stock being sold is a great way to register higher AOV. Cross-selling and up-selling is a brilliant way to scale your brand and sell more
A minimum-order discount
Incentivizing customers to buy more is a tricky dance, but usually offering discounts work like a magic. Using Shopify, you can set a minimum order amount for free shipping, for example, to ensure customers are incentivized to purchase more and hit the minimum-order amount.
Giving a 10% discount on orders over $50 or a free t-shirt on all orders over $100 are real-time examples that you can use for your store.
A customer loyalty program
A retention strategy that has been proven to reap dividends time and again, especially if your store sells perishable products is a customer loyalty program. It not only helps increase your AOV but also helps form a deep, sustainable relationship with your customer as well!
Bundled products/packages
Product bundles work miracles because they essentially use the Decoy Effect to nudge the customers to purchase them at a relatively lesser price hike than a single product. By bundling products or creating product packages which are priced only slightly higher than a one-off product, you are helping increase the customer’s perception of the product’s value.
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FAQ FOR Ways To Increase Average Order Value
Here are some frequently asked questions (FAQs) related to increasing average order value (AOV):
What is average order value (AOV)?
Why is AOV important for businesses?
What are some ways to increase AOV?
1. Cross-selling: offering related products or services to customers at the point of purchase
2. Upselling: encouraging customers to upgrade to a more expensive version of the product or service they are purchasing
3. Bundling: offering a discount when customers buy multiple products or services together
4. Minimum order value (MOV): setting a minimum order value to encourage customers to add more items to their cart to reach the threshold
5. Loyalty programs: offering incentives or rewards to customers who spend above a certain threshold