Average order value is the average amount of money a customer spends when buying products from your shop. To calculate your company's average order value, you can use the average order value formula. Simply divide the total value of all the orders in a certain period of time by the total number of orders received during that time.
In the competitive e-commerce landscape, increasing your Average Order Value (AOV) is a crucial way to boost revenue without acquiring new customers. Learn 10 proven strategies to encourage customers to spend more per transaction.
1. Offer Bundling Options
Bundling products together at a discounted rate encourages customers to buy more items at once. For example, offering a skincare bundle instead of individual products can be more appealing.
2. Implement Upselling Techniques
Upselling involves suggesting a higher-end product than the one the customer is considering. Highlighting the benefits and value of the more expensive item can persuade customers to upgrade their purchase.
3. Introduce Cross-Selling
Cross-selling recommends related or complementary products to customers. For example, if a customer is purchasing a camera, suggest they add a lens or a memory card to their cart.
Customers will often add extra items to their cart to qualify for free shipping
4. Offer Free Shipping Thresholds
Set a minimum purchase amount for free shipping. Customers will often add extra items to their cart to qualify for free shipping, thus increasing the AOV.
5. Create a Loyalty Program
Reward customers for spending more through a loyalty program. Offer points or discounts for larger purchases, encouraging repeat business and higher spending.
6. Provide Limited-Time Offers
Limited-time discounts or special offers create a sense of urgency, prompting customers to make larger purchases to take advantage of the deals before they expire.
Image suggestion: A countdown timer on a website highlighting a limited-time offer.7. Use Volume Discounts
Encourage bulk buying by offering discounts for purchasing multiple units of the same product. This strategy works well for consumables or frequently used items.
Make your best-selling and high-margin items more prominent on your website
8. Highlight Best-Sellers and High-Margin Items
Make your best-selling and high-margin items more prominent on your website. Featuring these products can lead to increased sales of higher-value items.
9. Offer Post-Purchase Upsells
After a customer completes a purchase, present them with additional products they might be interested in. This can be done through post-purchase emails or a thank-you page suggestion.
10. Simplify the Checkout Process
A complicated checkout process can deter customers from completing their purchases. Streamline the process to reduce cart abandonment and encourage higher spending.
Conclusion
Increasing your Average Order Value is an effective way to boost your e-commerce revenue without needing to acquire new customers. By implementing these strategies, you can encourage customers to spend more on each visit, enhancing your overall profitability.
For more inspiration and examples, visit Costura's e-commerce examples.
