10 Effective Strategies to Improve Customer’s Average Order Value (AOV)

10 Effective Strategies to Improve Customer’s Average Order Value (AOV)

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Oct 28, 2020

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To ultimately increase your profits, the more each sale is, the more revenue!

So let’s break down the list of campaigns and promotions you can do to improve your Customer’s Average Order Value.

Average Order Value or AOV is the average revenue you get from a single transaction of a customer.

Average Order Value = Revenue/Number of orders

One of the best examples of AOV strategy is the fast-food strategy wherein they will offer you to upgrade your order to make it a large drink or avail add ons for a cheaper price that is, well, hard to resist. Lol

However, it’s not that simple when it comes to online shopping because a customer only buys

exactly what they are looking for.

So to improve your AOV, I break down the 10 Effective Strategies to Improve your Customers’ AOV:

#1 First time offer

This commonly pops up when a customer opens the website. It will show special discounts like “Add your email to get an extra 15% off on your first order.” Since they will be added to your email list, you may retarget them to offer your other products and make them repeat customers.

#2 Bundle Deals

This is one of the most used and effective strategies to improve AOV. Offer your pro/.duct with bundle deals by pairing up with your products with slight discounts. For example, if you’re selling makeup, pair up a palette of eyeshadow with a set of brushes.

#3 Gift Card

Rewarding your customer will not just improve your AOV but will also improve your customer satisfaction. And of course, when they receive a gift card after purchase, they will want to use it soon.

#4 Product discount

The most popular marketing strategy is giving a product discount. Whether they are the first time or repeat customers, giving a percent discount will always be attractive.

#5 Cross-sell and Upsell

Cross-sell is offering a product by recommending it with the product a customer is looking for. You can offer a cross-sell campaign such as “Similar product” or “Product just for you”

Upsell is placing products right before they are about to check out. You can make a campaign such as “you’re $10 away to ship your product for free” or “save $10 when you buy this product with…”

#6 Loyalty program

Aside from providing good quality products, customers will come back to a brand that gave them special treatment.

A loyalty program is a good way to give back to your customer by giving them an offer exclusive for them. It can be freebies or loyalty gift cards. You may also give them a privilege to use your new products first hand before it will be released to the market.

#7 Time Sensitive deal

One of the very effective marketing strategies is adding a sense of urgency to your deal.

A time-sensitive deal or adding a time limit can improve not only your AOV but also your conversion rate as a buyer will have a feeling of not missing a once in a blue moon deal.

#8 Save with bulk order

Wholesale or bulk order will always save bucks. Offering your product in bulk to make your customer save more will result in a high profit and AOV.

#9 Product Recommendation to Product page and Cart

The best place to offer an Upsell & Cross-sell product is on the Cart or Check out page since your customer is ready to purchase when they reach this page. Showing recommendation products will make your customer itch to buy more if they see how much they can save if they added another product in their cart especially is the shipping is not free.

#10 Low-cost add-ons

This is actually part of an Upsell campaign but I separate it since it’s good to give it a focus.

Collect all the products that can be bought together and make it an add-on upon check out. For instance, if you’re selling iPhone case accessories, you can sell a phone case with an add-on lanyard or rope. That way, your customers have an option to buy a complete set of your products.

Now, that you know how to improve your AOV, you can read my 5 Levels of Audience Awareness to know how to target your audience based on their level of awareness. This is very important especially if you’re a new brand that needs to gain customer trust and increase social proof.

You may also read Why Presence Optimization is Important



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