9 Tips To Increase Average Order Value in eCommerce
Here's the deal: the higher your AOV, the more money you make from the same number of customers. This allows you to increase revenue without having to spend more on marketing and sales. AOV optimization gives marketers an extra tool to boost business growth.
Average Order Value (AOV) is the average amount of money a customer spends in your store per order.
9 Killer Strategies to Increase Your AOV
Product Bundling - Make It Easy For Customers to Buy in Bulk
Product bundling is like a ready-made combo of cross-selling or upselling, or a mix of both. For example, a winter sports apparel brand can create a bundle featuring a complete skiing look. A makeup brand might offer a "Glam Starter pack" with concealer, lipstick, eye pencil, blush and mascara. It's not just for build-a-box subscription businesses – any brand with at least two products can use bundling effectively. It's a highly effective strategy for boosting Average Order Value (AOV).
Rather than promoting each product separately, group complementary items and market them as a single package. This not only streamlines storage in warehouses but also reduces the number of shipping boxes, saving on postage costs.
Bundling simplifies your marketing efforts, as you can showcase a package deal instead of creating ads for individual items.
Budlind doesn't have to be about discounting, it can also be about convenience and reducing the customer decision load.
Types of Bundling
Pure bundles
New product bundles
Mix-and-match bundles
Cross-sell bundles
Gifting bundles
Inventory clearance bundles
Buy-one-get-one bundles
Discounted bundles
Tools to use
Bundle : Product Bundles - Bundler allows you to offer discounts on your products when the customer purchase them together in a bundle. Product bundles will help you increase your average order value, boost your sales and promote popular products together! Bundler app gives you the power to create classic bundles, Mix & Match bundles, volume discounts, frequently bought together, fast bundle upsell, grocery discount, discount popups, mix bundles, tiered discount, build your own bundle, automatic bundle discounts and more!
Kaching Bundle Quantity Breaks- This helps you create your own bundles which look amazing in your product page and boost your sales and track extra revenue generated in the main dashboard
Pumper Bundles Quantity Breaks- Pumper helps you scale your brand to the next level and extracts as much value as possible from each customer. By simply installing and selecting your top-selling products, you'll experience a significant boost in your both average order value (AOV) and overall profits.
Rebolt : Bundle Products Pro- Rebolt is the all-in-one bundle builder app to boost cart value and upsell more inventory. Give customers product recommendations and tempt them with bundles to purchase more. Customize bundles and combine them with discounts, upsell and cross-sell offers, and more. Rebolt Bundle Pro helps you boost AOV and grow sales faster.
Cross Selling - Make Smart Suggestions
Cross-selling involves suggesting products that complement what a customer is already buying. For instance, if a customer is purchasing nail polish, you could recommend nail polish remover as a cross-sell strategy. Make sure to display images of these products together. On the other hand, upselling encourages customers to opt for pricier versions of the same product or to buy additional items, ultimately leading to a higher average order value.
Upsell - Get Customers To Buyer Larger or More Premium Offers
An upsell prompts customers to choose pricier versions of the same product or to purchase additional items, leading to a higher average order value. It involves encouraging customers to invest in more expensive items or enhancements, ultimately boosting the overall order value or profit. For instance, if you're selling pillows, an upsell could involve suggesting comforter sets, duvets, or other related items. You might propose offering more of the same product or presenting a premium or upgraded version, like asking, "Would you like a 10-pack instead of a 5-pack?"
Tools to use (Cross sell and Up sell)
Bold Upsell App It helps to quickly and easily boost your AOV and capture more revenue with the only all-in-one upsell and cross-sell app. Upsell across every step of the customer journey—product pages, in-cart, cart drawer, checkout, and thank you pages. It helps customers uncover their next favorite thing and shop for more with upselling and cross-selling techniques and upsell funnels that convert. Watch incremental revenue grow live with our real-time analytics dashboards. Transparent tiered pricing—no hidden transaction fees.
Rebuy Rebuy leveraged Google Cloud AI technologies to create a smart merchandising solution, helping ecommerce businesses to drive profits, make better decisions, improve customer service, personalize the customer journey, and create faster, more efficient online shopping experiences.
Order Bump Order bump helps shop owners increase the average order value for each order by introducing upsell, cross-sell, and BOGO offers for the customers at the cart page, checkout page, and thank you page. Create multiple upsell & cross-sell offers.
Zipify One Click Upsell This helps you make more offers in more places to increase your average order value & topline revenue. OneClickUpsell makes it easy to offer upsells on your product page, shopping cart, post-purchase, TY page & on the SHOP app. Plus built-in split testing lets you to optimize each funnel for peak performance—no developers or custom coding needed. Just select your products, set a discount & publish. It’s that easy to optimize your checkout experience from top to bottom.
Spently Spently makes it easy for merchants to create and deliver e-receipts and other transactional messages that increase customer engagement and drive sales. Spently also provides capability for full customer lifecycle messaging via outbound campaigns. e-Receipts and other email notifications.
LimeSpot LimeSpot Personalizer is an intelligent data-driven personalization platform that marketers & ecommerce professionals use for onsite merchandising & personalization. Optimize product placement to deliver 1:1 personalized shopping experiences across web, mobile, email and SMS. LimeSpot increases conversion rates, average order value (AOV) & customer engagement through product recommendations, upsell, cross-sell, bundling, & content personalization. Setup is easy & start seeing results on day 1.
Free Gift Cards & Discount Coupons
Boost repeat customers and increase your average order value with gift cards and coupons. When customers have a gift card for their next purchase, it's a strong incentive for them to return. Just ensure that your pricing accounts for the complimentary gift and make it clear that the gift card is for their next purchase only.
Be cautious with pricing so that the gift card doesn't lead to a free purchase, causing a loss. Also, communicate that the gift card can't be used for the current purchase or shipping (especially if you offer free + shipping on some items). Offering gift cards not only encourages future purchases but also helps in reducing future ad spend. It's an excellent perk, especially during slower sales periods, but avoid offering it year-round to maintain its effectiveness
Discounts For Spending More
Discounts can play a role in increasing the average order value. Rather than just lowering the purchase price, consider implementing a minimum spend requirement. It might sound counterintuitive, but offering discounts can positively impact your average order value. For instance, offering a $15 discount when customers spend $100 or more can encourage higher spending.
Tool to use
USO Discounts & Promotions - Ultimate Special Offers makes it easy and efficient to run different promotions. It provides 9 offer types to choose from, so you can mix and match deals and test sales to see what works best for your store. You can set up offers to run 24/7, like post-purchase upsells or volume discounts, or you can schedule short term promotions like store-wide discounts or special bundles. With easy setup and flexible customization options, Ultimate Special Offers is everything you need in a discount app!
Post Purchase Order Bump Discount
A powerful strategy is to present customers with a discounted offer right after they've made a purchase. For instance, if a customer buys 3kg of protein powder, you can offer them a 20% discount on a pack of protein bars if they make the purchase immediately. You can showcase these offers right after the initial purchase using tools like CartHook, directly boosting the Average Order Value (AOV) on the same order. Alternatively, you can provide discounts in post-purchase email/SMS communications to increase AOV on their next order. This not only enhances AOV but also contributes to customer retention, repurchase rate, and overall customer lifetime value.
Tools to use
CartHook - This helps you upsell customers at checkout with tailored post-purchase offers based on their recent selections. Post-purchase offers appear right after an order is placed, completely eliminating the risk of cart abandonment. With 1-click checkout, there´s no need to re-enter any payment or shipping info. Our Drag & Drop Builder allows you to easily create and edit BOGO, discounts, and bundle offers. Benefit from A/B testing and an Analytics Dashboard.
AfterSell - AfterSell is a Shopify upsell app that helps brands create a cart, checkout, and post-purchase upsell experience to boost sales.
Reconvert - ReConvert upsell sidekick instantly boosts revenue! Create one click upsells, post purchase upsells & discounted upsells to your checkout & thank you page. Use ReConvert's conversion focused post purchase upsell funnel & checkout blocks to boost CVR Recharge one page checkout & thank you page: collect birthdays, upsale, track orders, offer bundle style cross sell & more. Get customers to Rebuy & Resell, increase your margins & hit new sales records with post purchase funnel resell
Time Sensitive Offers
To enhance your average order value, consider offering a time-sensitive deal. For instance, you could run a 48-hour promotion where customers receive a free gift or a special discount when they order a specific quantity of products. While this might not have a long-term impact on average order value, the sense of urgency contributes to increased conversions. Time-sensitive deals are particularly effective during slower periods, and executing them is relatively straightforward – promote them on social media or use a banner notification on your website.
Free Shipping Threshold
Many ecommerce stores utilize this tactic to increase their average order value. Feature an offer for free shipping prominently on your website. Utilize plugins to incorporate a notification at checkout, alerting customers if their order doesn't meet the threshold for free shipping. This prompts customers to consider adding more products to their carts to qualify for the free shipping offer.
Launch a Contest
Launch a contest where customers have the opportunity to win prize packs by making frequent purchases. Notify customers that each purchase grants them a chance to win these exciting prizes. Several apps are available to facilitate the smooth execution of such contests. By periodically running these contests, you can effectively expand the average order value. In the realm of ecommerce, consider organizing contests where customers stand a chance to win enticing prizes with each purchase. Communicate to customers that their purchases automatically enter them into the contest, offering them the chance to win one of several prize packs. Explore the Shopify App store to find the contest app that aligns best with your campaign.
Understanding your store's performance is crucial, and calculating your average order value (AOV) provides valuable insights. Once you've determined you know your baseline AOV, you can work to improve it, by being smart about the way you present offers to customers.
Let us know how you get on!
