Undoubtedly, the ultimate goal of an eCommerce business is to increase sales, conversions, and revenue. One of the best ways to maximize revenue for an eCommerce store is by increasing the amount spend by customers on each order.
In this article, I will share 10 effective ways to increase average order value (AOV). But before we need to know what exactly the average order value means and how it is calculated.
What is Average Order Value?
The average amount each customer spends per transaction with your eCommerce store is called Average Order Value (AOV).
How to calculate the Average Order Value (AOV)?
Use this simple formula to find your average order value:
Average Order Value = Total Revenue / Number of Orders
Google Analytics provides additional benefits. That’s why we recommend that you use Google Analytics to track the average order value.
10 Effective Ways to Increase Average Order Value:
Below is the list of ten proven and tested ways that will definitely boost the Average Order Value (AOV) of your eCommerce store if used smartly and appropriately.
- Targeted Product Recommendations
Setting up an effective Product Recommendations section is one of the most popular ways to motivate customers to buy more products. If your eCommerce website allows users to create an account, save products in the wishlist, you can analyze the customer’s behavior and browsing habits. Accordingly, you can create more personalized recommendations. Customers might love your recommended products and end up buying more units.
- Suggest Complementary Products
Exhibit the products that complete or enhances the look for the item your customer is interested in. For example, if someone is looking for a party wear dress, display them footwear and accessories matching dress style. This will help the shopper to make a quick purchase.
- Set Order Minimums
Setting up a minimum order value to get free shipping or other special discounts is a good trick to increase your average order value. This will encourage customers to purchase more to qualify for free shipping and get other exciting offers. Modern shoppers crave discounts, and you’ve to remember that at every stage of the marketing cycle.
For example, You can automatically activate the shopping cart to gift your customers free shipping or some special discount coupon once they purchase 200 dollars from your website. This will result in a higher Average Order Value (AOV) than the previous months’ as customers will order more to get rewards like free shipping and special discounts.
- Create Product Bundles
Bundling products together at a discounted price is another effective way to provoke high-value transactions and an effective way to clear the old stock. Shopify eCommerce Development Services have useful apps like Bold Bundles that help to create Product Bundles with ease. Also, other eCommerce development platforms like Woocommerce and Magento offer significant features to create product bundles.
- Use Deal Countdown Timers
Creating the Fear of Missing out, a sense of urgency, and using countdown timers on the website will encourage customers to grab a deal that’s on a limited-time offer. This sense of urgency will result in increased high-value transactions.
- Suggest Products at Check Out
You might have failed to grab your prospective customer’s attention through promotional banners, countdown timers, free shipping, or other offers. We suggest you try to capture your targeted customers’ attention at the checkout page or after the customer has made the final purchase. You can include product suggestions in the shopping cart. This improves the chances of increasing AOV. But remember, do not show unnecessary or repeated pop-ups on the final checkout page. This might irritate the customer and leave a negative brand image.
- Setup Email Marketing Funnel
Running email marketing campaigns offers great opportunities for generating more sales. Email marketing helps to deal with cart abandonment rate, acquire new customers and keep the existing customers updated with the latest arrived stocks, upcoming sales, and more. Create a section of “Subscribe Us” on the website’s footer asking website visitors to subscribe to your email list to get informed about upcoming events and deals. Keeping the prospects updated via email will help them know about your products and offerings better, ultimately leading to increased Average Order Value (AOV).
8. Use Price Anchoring
Price anchoring is an effective psychological marketing tactic that can give great results. You can do this in 2 different ways:
- Show the high-priced products first and then the low-priced products.
- Put your highest-priced products between two products at a low price.
9. Target Customers by Purchase History
Based on the customers’ purchase history and browsing habits, you can send them highly personalized discounts and offers to drive more sales and conversions. This will also lead to enhanced user experience and increased Average Order Value.
10. Social Sharing
In this world of digitalization, social media channels are not only a social networking platform; instead, they also serve as a great platform to promote your business, search and acquire new profitable customers, maintain customer relationships, and holds the capacity to take your business to the next level. We suggest you make the best use of social sharing as proof for building customers’ confidence in your brand and encouraging them to make more and more purchases.
Optimizing your eCommerce store for AOV (Average Order Value) is an important measure to maximize customer acquisition, boost sales and revenue. Building a profitable online store in such a highly competitive digital world is not an easy task. Use the above-mentioned tips to enjoy higher revenue and rewards.
Experienced Company Director with a demonstrated history of working in the information technology and services industry. Skilled in eCommerce Web Development. Strong business development and experience of 10+ years of working in London with Merchant Banks like Dresdner, Normura before establishing Critical Mission Computing with over 20+ years of experience.