In the vast world of eCommerce, businesses are constantly seeking ways to maximise their revenue and enhance customer satisfaction. One of the most effective approaches to achieving your goals is by boosting the Average Order Value (AOV). While we’ve spoken AOV before, we’re taking another in-depth look at what you can do as an eCommerce leader to boost these numbers.
But first, why is a higher Average Order Value important? A higher AOV not only increases your bottom line but also indicates that customers are making larger purchases. While this is great for increasing profits, it also indicates that customers trust your brand enough to throw more money at you.
Let’s dive in.
A Quick: What’s Average Order Value?
Average Order Value is the average amount of money customers spend per order.
What is the goal of increasing your AOV? Getting your customers to spend more money per order (or cart).
Told you that was quick. Moving on.
5 Strategies to Improve Your Average Order Value
1. Upselling and Cross-Selling Techniques
Would you like fries with that?
One tried-and-true method to increase AOV is through upselling and cross-selling. To implement upselling effectively, you should present customers with compelling reasons to upgrade to a more expensive option. For instance, highlighting additional features, superior quality, or exclusive benefits can entice buyers to consider the upgrade.
Cross-selling is on the other side of the spectrum and involves stealthily recommending relevant products that enhance what the customer already has in their cart. If they’re purchasing a camera, suggesting a tripod, memory card, or camera bag would increase their overall Average Order Value. If done right, this strategy will not only increase the profits you get from one order but will significantly impact the customer’s satisfaction with their order and your brand as you’re providing a complete solution to their problem.
2. Free Gift with Purchase
Discounting immediately stifles the Average Order Value and doesn’t provide your brand with any value either. Customers who arrive from discounts don’t often lead to loyal customers. And loyal customers don’t need discounts to stick around. If they do, they’re called discount hoppers, and they’ll drop you for the next brand with a better offer.
That being said, a free gift with purchase can often increase the AOV of an order, especially if the gift only comes when customers hit a certain order cost. People love receiving extra goodies for free, and this tactic will allow you to tap into that innate desire.
By setting a minimum order value or specific product threshold, you can entice customers to spend a little more to qualify for a free gift. Not only does this increase the AOV, but it also creates a sense of excitement and value for the customer, enhancing their overall shopping experience with your brand.
3. Limited-Time Promotions and Bundled Offers
Creating a sense of urgency and scarcity through limited-time promotions and bundled offers can significantly impact AOV. By showcasing time-limited deals, flash sales, or limited edition product bundles, you create FOMO (fear of missing out) in your customers. The fear of losing out on a great deal or unique product encourages them to make larger purchases to take advantage of the offer.
Everyone knows that pushing buttons on customers' emotions is one way to gain their attention. Bundled offers that provide a discounted price for purchasing multiple items together can lead to increased AOV as customers see the value in acquiring the bundle rather than individual products.
4. Loyalty & Rewards Programs
Implementing a loyalty and rewards program like with LoyaltyLion is another powerful way to boost AOV. By providing incentives and exclusive benefits to repeat customers, you encourage them to spend more with each purchase.
If you offer point-based systems where customers earn rewards based on their spending, customers are more likely to spend. Creating rewards that can be redeemed for discounts, freebies, or even VIP sales, early access, and events will not only increase loyalty and Customer Lifetime Value but will also give the customer a sense of community within your brand. By enticing customers to reach higher spending tiers to unlock greater rewards, you can motivate them to increase their order value and build loyalty to your brand.
5. Rebuy Smart Cart
Another clever tactic to boost AOV is by implementing a Rebuy Smart Cart. This innovative feature is an AI-powered app that allows customers to easily repurchase frequently bought items without going through the entire shopping process again. Think of it as a “one-click reorder” button that saves time and effort for your loyal customers. By streamlining the repurchasing process, you encourage customers to add more items to their carts and complete additional transactions, resulting in a higher Average Order Value.
Moreover, the Rebuy Smart Cart presents an opportunity to upsell and cross-sell related products (remember, we just spoke about how important this is?) For instance, if a customer previously bought a set of kitchen knives, you can display an option to upgrade to a knife sharpener or a knife block with their next purchase. This seamless integration of upselling and cross-selling within the Rebuy Smart Cart feature not only boosts AOV but also enhances the overall shopping experience.
With Rebuy Smart Cart, you’ll be able to build a shopping cart that shoppers won’t abandon. You’ll be able to use one-click widgets to easily add features, optimise their experience, and drive performance with the following features:
✔️ Discount widgets
✔️ Accelerated checkouts
✔️ Intelligent upsells
✔️ Gift with purchase
✔️ Tiered Progress Bar
✔️ Switch-to-Subscription
In essence, the Rebuy Smart Cart can cover every strategy mentioned above and push your AOV to the next level.
Blend & Increasing AOV
By incorporating these strategies, you can give your eCommerce business the edge it needs to boost AOV and thrive in the competitive online marketplace. Remember, understanding your customers’ preferences, providing exceptional value, and creating a sense of excitement and exclusivity are key factors in increasing Average Order Value and building a loyal customer base.
Looking to increase your AOV with tried and tested strategies easily? Get in touch with Blend today.
Published: June 20 2023
