Despite your income level, are you happy with the number of your customers?
I’ll let you in on a little-known fact: Increasing your customer base isn’t the only way to boost sales at your online store. However, one of the best ways to increase your income is to increase the average order value.
We all know that higher traffic generally results in more sales or customers, which increases revenue. For this reason, businesses gladly use SEO and other marketing strategies.
But sometimes, just having guests isn’t enough. It would be best if you did everything possible to get them to “buy” as much as possible.
The average order value can be raised in several ways. I’ll outline some quick and easy tactics in this article that you can use immediately.
How Much Does a Typical Order Cost?
Merchants utilize the average order value (AOV) metric to learn more about the purchasing patterns of their customers. The average cost per transaction from transactions made through your online store makes up this amount.
Knowing your average order value gives you the data you need to determine the long-term value of each customer, which you may use to evaluate your pricing strategy and online marketing efforts.
How is the Average Order Value Calculated?
The average order value is determined by dividing the total monthly revenue by the number of orders placed during that month. Your AOV can be calculated for any time frame you want.
Imagine you run an online clothing company with 250 orders generating $5000 in income. Your average order value will be: 5000/250 = $20.
Sales per order rather than sales per customer are considered when determining AOV. No matter how many times a customer has made purchases, each is counted separately.
How to Raise Your Average Order Value?
The following easy yet useful procedures must be taken into consideration if you want to raise the average order value:
1. Utilize Exit-Intent Popups
A popup that appears as the user is about to leave your website is known as an exit-intent popup. It’s a desperate attempt to persuade the customer to stay and buy anything. It also works.
How will this function? Simple.
Customers can leave if your website doesn’t offer free shipping or if the costs are too high. Utilizing exit-intent popups, you can persuade users to stay on your website and complete a purchase, ultimately spending more than they intended by giving them a chance for a discount or free delivery.
When it comes to exit-intent popups, creativity is crucial.
Here are a few pointers for creating an exit-intent popup from the many options available:
Ensure that the popup is pertinent to the page on which it appears.
Make the offer too good to refuse.
Ensure that the popup is simple to read and use.
Add a compelling call to action.
Test many iterations to see which is most effective for your website.
2. Provide “Free Shipping” and additional bonuses
The promise of free shipping appeals to a lot of customers. You can raise your average order value by offering free shipping as a perk.
84% of consumers expressly purchased because shipping was free, and 30% stated they always raise the number of their orders if it qualifies them for free shipping, according to BigCommerce’s Shipping Through Shifting Expectations research of 3,000 consumers.
Similar to free shipping, you can see how the massive fast-food business Burger King is enticing customers to place or finish their purchase by charging a $1 delivery cost.
But that isn’t the only option. You may raise the average order value by giving away items with every purchase.
Anything from a modest gift to a discount on a future purchase might be considered a freebie. They’re a fantastic method to let your customers know that you value their business and hope they’ll return for more.
3. Compile items into packages or bundles
Mixed product bundling is the practice of a company combining well-liked products that are typically sold separately into a boxed set that is offered at a lower price. Customers can purchase one or two items singly or numerous items bundled together.
Customers are more inclined to buy more things when they are bundled together. Thus this is a beautiful approach to raising the average order value.
Products can be packaged as one method of bundling. This might be a set of skincare products, such as a cleanser, serum, and moisturizer. Alternatively, it might be a set of clothes with a top, bottom, and accessory.
Packages are a simple approach to encourage customers to make larger purchases and can be an excellent way to move slow-moving merchandise. Additionally, it gives the impression that they can get anything they need from your store!
For clients that buy a specific quantity of things, you can also provide bundle discounts or other offers. Customers will be encouraged to make larger purchases, increasing your average order value.
4. Provide Temporary Special Promotions
Running limited-time promotions is one of the easiest ways to increase your average order value.
This might involve a sale, a giveaway, or even introducing a new product. Profit from the marketing for FOMO (Fear of Missing Out). Offer time-limited promotions to spur potential clients into action.
When it comes to promotions, timing is everything. Make sure you’re promoting your goods in the appropriate manner and at the proper time.
For instance, a sale can be better suited near the end of the season, whereas a giveaway might work well around a holiday like Thanksgiving or Christmas. Or it can simply be a free delivery coupon that is valid throughout the day.
Consider the trends in your sector and what would be most beneficial for your company. If you strategize and plan, you will get results.
5. Promote or Cross-Promote Related Products
Please make sure consumers who have already purchased on your website see all the alternatives that complement the item they are buying.
Selling to your current clientele is one of the most successful marketing techniques. According to numerous studies, this is one of the best ways for businesses to create money.
To promote effective and long-term success and raise average order value, upselling and cross-selling will probably become more crucial.
Several methods exist for doing this. One is by making recommendations for relevant products on the checkout page.
Adding product recommendations to your product pages is another option. Last but not least, you can send automatic emails that suggest extra things to clients depending on what they’ve already purchased.
For instance, you might advise a pair of shoes or a purse to go with the dress or blouse they’re looking at on a women’s clothes e-commerce site. On a website that sells home furnishings, you might also advise a lamp or rug that would go well with the couch or bed they are looking at.
6. Launch a customer loyalty initiative
Create a client loyalty program as a terrific strategy to raise your average order value. A significant opportunity for further sales is wasted because the average user stays less than a minute on a website, making it unlikely that they would explore the entirety of a merchant’s market offerings and potential purchases.
The good news is that clients who are happy and satisfied with their purchases from you are more loyal to your brand, spend more on each transaction than other customers do, and are less volatile.
Compared to devoted, recurring clients, new customers cost more to recruit and spend less money. The success of a business depends on its ability to keep customers coming back for more.
Price or availability do not affect customers devoted to a particular brand’s goods. They would rather wait and pay more for the same kind of service and product they are used to and value.
There are several methods for setting up a loyalty program.
Customers can be rewarded with points for each purchase, or you can give them special deals and gifts once they spend a certain amount. This will encourage your clients to continue making larger purchases from you.
Whatever method you decide on, make sure to advertise it to your clients, make it simple for them to sign up, and offer perks that will tempt them to continue doing business with you.
This will motivate people to support you. They receive greater prizes the more they spend!
7. Offer fully functional live chat assistance
You already know that giving live chat increases conversions and, eventually, money if you have read Social Proofy’s blog post about live-chat data.
Offering live chat has a favorable impact on sales, revenue, and client loyalty, according to 79% of organizations. Therefore, it is clear that live chat increases average order value directly and favorably.
Customers are more likely to stay loyal to and purchase more from businesses that provide live chat help. It’s among the quickest and simplest methods for offering customer assistance. Thanks to this, customers can ask questions and receive real-time service with their orders.
8. Increase Trust
When purchasing from a store for the first time, customers frequently hesitate to make large financial commitments. There are numerous methods for turning newbies into loyal patrons. Put your attention on retargeting, email marketing, and personalization.
To encourage them to make larger purchases, you can utilize popups that will only be shown to first-time customers and offer a discount, free delivery, or coupon codes with a minimum purchase requirement.
Building trust with any visitor can also be accomplished by using testimonials. Look at Packlane’s illustration below. They added a testimonial video to demonstrate how to be successful with their bespoke packaging products.
In addition, BaseCamp has a lengthy number of endorsements. BaseCamp, a SaaS application that aids businesses in managing teams and tasks, clearly understands this concept as they feature some of their most well-known users’ testimonials on their landing page.
9. Simple return policies and trial periods
A store’s rules to control how customers return and unwanted exchange goods are known as return policies. A return policy explains to customers what can be returned and why, as well as how extended returns are accepted to be made.
When customers open your website or app, they want to see a clear return and refund policy that specifies your store’s policies to establish trust.
People frequently detest shopping in stores when they are unsure whether the return and refund procedure will meet their expectations.
A low-cost return shipping option is desired by 55% of consumers, according to Accenture’s Investment Advice Report.
According to the same survey, return policies ultimately affect 80% of sales. If your return procedures are explicit, customers will feel more comfortable and more likely to trust your business.
Similarly, giving a product a long trial time shows that you believe in its quality. And the buyer receives this assurance.
For instance, IKEA provides a 90-day trial period for its mattresses. If the purchaser is dissatisfied with its performance, they can choose another. Customers are more likely to purchase more when they know that returning the item is simple, raising your AOV.
10. Use social media to its full potential
Everyone uses social media extensively. And a sizable portion of these visitors chooses to buy products after reading reviews on social media and seeing them in use. A lot of customers won’t buy from your business until they’ve read an online review.
Sharing customer reviews on your business’s specific social media platform is a wise move in this situation. You could ask social media influencers to review your products.
Today’s image-driven social media photography could boost the success of your business. By integrating testimonials and social media posts from actual customers who have used your products, you may leverage the effectiveness of user-generated content (UGC) in emails.
Using social media, you can access user-generated material. UGC shows what real people like and purchase and how things look in real life to establish social proof.
When customers can view pictures and videos of your brand in action, they are more likely to make a purchase.
It’s time to put this advice into practice so you can start seeing results now that you know how to raise your average order value.
Don’t attempt every strategy to raise your average order value at once. Instead, give each one a try and see which one works best for you before sticking with it.
Be aware that it can take some time for your efforts to start showing results, but if you stay committed and inspired, you should be able to raise your average order value quickly.
Who knows, though? You might even be able to start scaling up your firm once you’ve increased your average order value and taken it to the next level.