Getting customers to increase their order value with you is any eCommerce websites ultimate goal. AOV (average order value), is a hard metric to balance, and doesn’t always necessarily mean more profit either. Thinking about value based tactics to increase the per order spend, and keeping it in check with your profit margins, is a better way to think about it.
Basically, the higher your AOV, the more earning potential from the same number of customers. This means you're essentially increasing your revenue without increasing external costs such as marketing. It's just one more of the ways in which you can grow your business naturally and organically - utilising some small tricks that don't cost you a lot.
Luckily there are actually a couple very simple ways to encourage this, without being pushy or overly salesy. We’ve broken down the top 4 strategies to promote spending on your site, while also giving your customer a great experience.
This is a strategy you see on many sites, and is now kind of a given. Having minimum spend for free shipping is a great way to encourage customers to up their order value to qualify. The best thing about this strategy as it is also entirely in your hands, you’re able to play with the margins until the shipping cost becomes irrelevant in comparison to the order size. And customers love free shipping.
Once a customer has selected what they want and entered the cart, this is the perfect time to recommend similar or complementary products to them in the hope of up-selling. This should be specific and tailored, not just random recommendations. As the customer should be easily able to recognise value in adding them to their cart, a good note is smaller value items are more likely to be added as well, so having an option for this is advisable.
Similar to the above, creating product bundles can encourage customers to see the value in purchasing more in one go. The mentality here is you’re increasing the perceived value of the customer's purchase. They are especially if the bundles are offered at a slight discount than buying separately, or include a little something extra. Bundles are best done with complimentary and relevant items, making it easier to simply add one thing to cart.
Similar to free shipping, offering free samples or a gift with purchase with a minimum spend can also increase customers to up their order amount to qualify, and gives them the feeling they’re getting something a little extra as well. This strategy ties in well with product recommendations in the check out too, especially when paired with clear copy letting the customer know “if they add this, they will also get this”.
Increasing your AOV on eCommerce stores can seem like an uphill battle, but including some of these techniques is likely to help you build that spend sustainably and without affecting your profit margin negatively; while also giving your customers a great experience dealing with your brand and product.