5 Effective ways to increase your average order value
Posted on 8th June 2023 at 09:26
Everyone wants to improve website traffic and conversions to drive sales. However, one often overlooked strategy that can be highly effective in increasing revenue and ROI is to focus on increasing the average order value (AOV).
Here are 5 ways to increase your AOV:
1. Product Bundling:
Bundling involves offering users a great deal on multiple complementary products, encouraging them to spend more in a single order. You don't necessarily have to offer significant discounts; instead, you can add value by including an additional product or a free gift. For example, you can offer a bundle deal like "Buy the cleanser and moisturiser together and get a free face cloth."
Even if you have only one product, you can create a multi-pack option where customers save money by purchasing more than one. Bundling has proven to be extremely effective for one of our clients who sells a single product and (not) surprisingly it's the bundles, not the individual products, that sell well because of how we position & market them.
2. Free Shipping Thresholds:
Free delivery can be quite a difficult challenge financially for a lot of retailers. Setting free delivery over a certain threshold can solve this problem.
For example, if you notice that people on your site spend around £30 and if delivery costs you £4.00, then try setting free delivery at £40. For this to work effectively you need to display the required amount needed to get free delivery.
This works particularly well during peak gifting periods over Q4 when people are more tempted to purchase additional products as gifts.
3. Cross-Sell Related Products During Checkout:
This tip may seem like a no-brainer, but there’s a right way and a wrong way to cross-sell. Getting it wrong could mean stagnant AOV.
The key to an effective cross-sell is to offer items that add value & appear genuine, don’t just cross-sell any old item. Think of this like a friend giving advice - "these shoes match this dress perfectly, you should definitely consider buying them to complete the look."
Test with post-purchase upsells too. If you’re worried about affecting their conversion rates when trying to bundle complementary products, a low-risk way to test is by implementing post-purchase upsells, maybe using an app like ReConvert. That way, you can use data to inform you which products people buy together. And then create a bundle pre-purchase for the same.
4. Cross-Sell and Upsell in Your Email Flow:
Another way to cross-sell and upsell without detracting from the current sale is to include upsells in your email flow, particularly in the confirmation email. As soon as the customer completes a purchase, send them an email expressing gratitude and offering an incentive to purchase a matching product. For example, you can say, "Thank you for purchasing your starlight earrings! Enjoy 10% off on the matching necklace." This approach can be highly effective.
5. Focus on Marketing Higher AOV Items in Your Social Ads:
When it comes to sales generated directly from meta ads, a strategy we use to increase AOV is to focus on advertising higher-priced products and emphasising their value to prospects. Additionally, consider excluding lower-priced products from your catalogs or dynamic product ads, as these purchases may bring down your AOV. This tactic may not be suitable for every business, but it's certainly worth testing.
Increasing your AOV is not a quick and simple fix; it requires testing and analysis to determine what works best for your business and customers.
We hope these strategies provide valuable insights, and we're here to help if you have any questions.
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