Finding more customers is not the only way to increase your sales or generate more profit.
This is a very common misconception.
In fact, you can also increase your revenue by increasing the actual amount each customer spends per transaction on your website.
That is to say; you can grow sales by increasing the Average Order Value (AOV) of your online store.
And that’s the ultimate goal of your ecommerce business; to make money, isn’t it?
So for now, let’s look at some productive ways you can use to increase your AOV and bring in more revenue.
Track Your AOV
First things first though. Have you measured the AOV on your store? Use this simple formula to find out :- Average Order Value = Total Revenue / Total Number of Orders
Or, use Google Analytics to find out the AOV since you get the additional benefit of correlating your sales data with actual website usage data like bounce rate, traffic source, landing pages etc so you also understand the overall performance of your store better.
There are some effective ways to increase Average Order Value (AOV) and as you go through this list, you will recognise some of these from your own experience of buying online too. Use your understanding to discern which of these will work for the product or service you sell online.
Best Ways to Increase Average Order Value- Give Them These Reasons to Buy More
Provide recommendations for targeted products-
When customers reach your site, they’re usually following one particular product that attracted them. This is a smaller cart order. At the checkout, show more pieces that complete the entire look and it is likely that they will buy all the pieces, increasing their order value.
Upsell products –
You can use web design elements like color, font, or banners to highlight higher priced products of the range that you sell on your store. Explain the details that make it worth their while to buy the more expensive product and they are likely to buy it. Don’t be too pushy here; upselling a product shouldn’t take away from the initial purchase intent. Simply give them a reason to buy the more expensive version.
Create product bundles or packages-
If it is more expensive to buy a single item, customers will be tempted to buy the bundle or package deal you create for more savings instead. For example; a popular buy one get one free package.
Set minimum order numbers for an attractive discount-
Similar to the bundle or package, an attractive discount for a minimum order, could incentivise customers to buy more. The buying process should be smooth and uninterrupted so look at setting up your store on platforms like Shopmatic that make it easy to incorporate these features.
Set up a customer loyalty programme-
The more genuinely rewarding the program, the more customers stay loyal to it; feeling gratified by the familiarity and satisfaction of buying at your store. It is no secret that loyal customers spend more money and build strong relationships with the brand. For best results build a loyalty program based on spending tiers.
Offer free shipping beyond a minimum order value-
This is a classic tactic that promotes an increase in average order value across a variety of products on many ecommerce sites.
Charge more for personalising items, gift wrapping or other such add-on services-
Based on the type of product or service you offer, this might be a strategy that attracts a higher AOV on your online store
Provide ‘first time’ offers-
Not only does it increase AOV, this strategy also encourages new customers and is a popular one across a variety of ecommerce stores.
Use a strategy around Price-
Anchor the price as a marketing strategy – showing the high price first, or surrounding the high price product with lower price ones making them seem reasonable in comparison. Basically you will be using price as an effective psychological marketing tactic.
Create Time-Sensitive Offers-
Harness the influence of FOMO (“fear of missing out”) to build a message of urgency around some products. For instance – a limited time offer or an early bird pricing.
There will always be scope for improvement on your strategy to increase AOV. Don’t be afraid to incorporate different ideas at different times in your selling cycle. Remember the ultimate goal is still to make money in your business!
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