The primary reason for increasing your average order value (AoV) is that you’ll make more profit from each transaction. When customers shop online, they’ll often only make a single purchase. However, with some proven AoV strategies, you’ll learn how to present more great products to consumers and drive more sales from each order.If you’re ready to convert more web visitors into leads, contact our skilled conversion specialists today to schedule a customized strategy call.
How Does AoV (Average Order Value) Indicate a Business’s Success?
Average Order Value—the average dollar amount a consumer spends when placing an order with your eCommerce store.To calculate your store AoV’s, divide your online store’s total revenue by the number of orders made. For instance, if your eCommerce store has a total revenue of $5,000 split between 200 orders, then your AoV is $25.Knowing your store’s AoV can help you measure the long-term value of each customer. However, because there’s a transaction cost associated with every order, increasing your Average Order Value is a cost-effective way to drive revenue and boost your profits when customers are already purchasing products from your store.Increasing your AoV can improve your ROI and ROAS for all your online marketing efforts. The higher your AoV, the more value you’re getting from each customer—and ultimately, out of every dollar you spent to gain those customers.
What Is Upselling?
Upselling is a sales strategy geared towards persuading existing customers to buy a more expensive, premium, or upgraded version of the selected product or other add-ons to increase your AoV or profit. For instance, if you sell pillows, you can upsell them with a duvet or comforter set. Upselling drives sales because:
- The cost of gaining new customers is 5X that of keeping current ones.
- Current customers are 50% more likely to purchase new products.
- Existing customers are likely to spend 31% more than new prospects.
- Selling to an existing customer is easier: 60-70%, compared to selling to a new customer at 5-20%.
A great way to upsell your customers is to sell more of the same item. If you sell perfume, upsell by recommending other scents, or the same scent in bulk. The reality is customers are more likely to purchase more of what they love, especially if the product may run out at some point. This also works perfectly for clothes and beauty products.
What Pop-ups Increase AoV?
- Exit-Intent Pop-Ups
You can show exit-intent pop-ups once a customer is about to abandon your website. It might come as a surprise, but you can use these ads to increase your AoV depending on how you display them. For example, customers may decide to abandon their carts because you don’t offer free shipping or because your prices are too high. If you offer free shipping or get a discount, you can encourage them to stay on your website and complete their transaction, eventually spending more than they initially intended to spend.
- Upsell Pop-Ups
Pop-ups are a perfect way to capture your web visitor’s attention and increase your AoV. So, instead of only using them to promote deals and discounts, you can also use them to market upsell offers. You can execute different upsell campaigns on various web pages for better performance.For instance, if a web visitor is on your product page and is about to exit your website, you can display an upsell offer, recommending a similar but better item at a 20% discount. So, upselling using pop-ups is an effective way to increase your AoV on each customer.
- Cart Reminder Pop-Ups
Do you know that adding cart reminder pop-ups on checkout and product pages can improve AoV by as much as 50%? That’s because this marketing technique enables you to offer cross-sell and upsell discounts immediately to your web visitors. For instance, you can add cart reminder pop-ups on your checkout page to remind shoppers to add a certain number of products on their carts to qualify for free shipping.
Dynamic Discount Progress bars
Consumers are always looking for the best deal. The primary reason 69.23% of online consumers abandon their carts is that they’re looking for the best deal on similar products elsewhere.Curb exit rate by adding a dynamic discount progress bar on your web pages. A dynamic discount progress bar shows how close a customer is to unlocking your on-site discounts and offers. You can motivate your customers to buy more products by showing them a persistent visual of their progress towards qualifying for an on-site offer. It’s even more effective when you combine this technique with a dynamic promotion progress bar, which displays how much more a customer needs to spend to unlock your on-site deal. This is an effective technique to increase your AoV.
3 More Ways to Improve Your AoV
- Gain Trust with Social Proof
Feedback and online reviews from previous customers are vital forms of “social proof.” They can significantly affect purchasing decisions. For instance, a report by Search Engine Watch shows that 72% of customers will only buy after reading positive reviews.Display happy reviews prominently on your marketing materials and webpages to encourage and reassure customers that your products are high quality and will meet their needs. This will ultimately motivate them to buy what you’re selling, ultimately increasing your AoV.
- Limited Time Promotions
No one wants to miss out on great deals and promotions, right? Fortunately, creating a sense of urgency can motivate your customers to add more items to their carts. Also, offer short-term offers and discounts codes (with a 24 or 48-hour window) on certain products to improve AoV.
- Reward Loyalty
Starting a loyalty program can help you improve your Average Order Value. Because every time a customer orders, they earn discounts and points for being loyal customers, which ultimately encourages them to spend more on your store.The primary benefit of having a loyalty program is that it helps build brand advocates—customers who keep coming back to your store to shop. The ROI from Marketing to Existing Customers reports that 40% of eCommerce stores’ revenue comes from existing customers. However, only 8% of all web visitors are existing customers. This shows that existing customers are more likely to buy from your online store than new prospects who aren’t familiar with your products.By nurturing existing customers, you can create a massive customer base who will likely buy more products from you. Existing customers are also cheaper to advertise to through email marketing or social media marketing.
Final Thoughts
Calculating your AoV can help you determine how successful your eCommerce store is. After calculating your AoV, execute some or all strategies discussed in this article to increase it. Whether you leverage pop-ups or create bundle deals, you’ll experience higher order volume on your eCommerce store. So, are you ready to increase your average order value? Then, it’s time to make some new changes.At Ampry, our conversion specialists can help if you’re experiencing low conversion rates, frustrated with low online sales, or tired with high cart abandonment rates. Schedule a strategy call now with one of our experienced conversion specialists. Don’t hesitate to contact us today!