One of the many objectives of any ecommerce business is to increase average order value, and there are several ways to do this. You can give your campaign structure priority if you're running Google Shopping campaigns. If all you're using are search ads, you can also use display or social ads. Of course, you can also improve the entire shopping experience.
As you can see above, average order value benchmarks vary by industry. However, strategies for boosting average order value frequently translate across industries. Read on to discover 9 realistic ways to raise your average order value.
What is average order value (AOV)?
The average amount spent per transaction on a website, in an online store, or over a predetermined time period is called the average order value (AOV), a metric businesses frequently use it to monitor customer behavior, identify lucrative sales channels and market segments, and ultimately evaluate and enhance their sales performance.
AOV can be calculated for the entire business or for particular product line, distribution channels, or geographical areas.
A company might, for instance, compare its AOV from year to year or look at how various marketing campaigns affect AOV.
Businesses can take action to raise their average order value and boost their bottom line by understanding how AOV is calculated and what factors affect it.
How to calculate average order value
To calculate your Average Order Value, simply add the total revenue from all orders in a given time period and divide it by the total number of orders placed during that same time period.
9 ways to increase average order value
1. Boost your website’s social proof
A new website visitor may be learning about your brand for the first time when they land on your page. This is your chance to make an impression on them and provide proof for why they should buy from you.
Social proof persuades potential customers to buy by demonstrating that others are happy with your good or service.
There are several ways you can use social proof, but to increase AOV, try these:
Add testimonials to your homepage and product pages.
Add customer testimonials to the relevant product pages if you have any for your particular products. As an illustration, consider the company Oodie, which displays customer testimonials directly on its homepage.
2. Test out different website copy
Whether or not customers decide to make a purchase depends heavily on the copy on your e-commerce website.
It might be time to A/B test your website copy if you're not satisfied with your current conversion rate. This simply entails producing two variations of a specific element and comparing the results.
On your website and landing pages, you can A/B test practically anything, including:
- Headlines
- CTA buttons
- Product descriptions
- Product images
- Website layout
- Checkout process
3. Make customer service a priority
Website customer service is frequently considered as low priority, but it should be given serious consideration because it lowers barriers to purchase and fosters trust, both of which will raise your average order value.
Additionally, providing excellent customer service can aid in problem solving quickly and effectively, saving both time and money.
You can take the following actions:
- Add a live chat option that is available round-the-clock: Live chat enables website visitors to get their questions answered in the moment, which can help to ease any uncertainty or hesitation they may feel about making a purchase.
- Create a FAQ or help page: Your average order value will rise if you give your customers a resource page they can rely on. This will demonstrate to them that you are dedicated to giving them the best experience possible.
- Include a phone number: Make it as simple as you possible to contact your company.
- Add a contact email: If you don’t have a contact email yet, it is crucial to have one so customer can email you for help.
4. Include upsell options
Upselling is the process of persuading customers to buy a more expensive model of the product they are considering. For instance, you might try to upsell someone who is considering purchasing a basic pair of shoes by presenting a more expensive option that is made of higher-quality materials, is a limited edition, or has customization options.
Proflowers offers a variety of bouquet options, including the Deluxe, Premium, and Exquisite options shown in the example below.
5. Include cross-sell options
Is when you encourage customers to buy related products. You might try to cross-sell when someone is purchasing a dress, for instance, by suggesting jewelry or shoes that would look good with the dress.
Since you can sell multiple products to the same customer, this is a fantastic way to raise your AOV. Additionally, it's a great way to get rid of any lingering inventory you might have.
6. Bundle products together
Many companies use product bundles as a common strategy to encourage customers to spend more money on a single order.
If you sell beauty products, for instance, you might put together a package that contains a few different things, like shampoo, conditioner, and a hair mask.
Let's examine this example. The website builds a bundle of products that are frequently purchased together when you add a product to your cart.
7. Add limited-time offers
Customers are motivated to buy when there is a sense of urgency created by limited-time offers. For instance:
- For a brief period, give a free gift with your subsequent purchase.
- Discount certain products or segments.
- Create a limited stock sale and conduct a stock clearance
To let customers know how long they have to take advantage of the offer, you could also include a countdown timer on your website, like Pura Vida does below:
8. Use exit-intent popups
Exit intent popups are an excellent way to raise your AOV and to increase sales in general. These show up as a user is about to leave your website, but you can also set other conditions, like after a specific period of time on your website or after scrolling a specific amount down a page.
The popup usually has a promotion, like a deal or a freebie. The objective is to persuade the customer to stay on your website, buy something, or subscribe to an email newsletter.
9. Add a free shipping option
In order to qualify for free shipping, customers are encouraged to add more items to their cart using this strategy. If, for instance, your free shipping threshold is $50 and a customer has only made purchases totaling $42, they will probably add more to reach the $50 threshold.
For free shipping, you can specify a minimum purchase threshold in either dollars or units. For instance, you could provide free shipping on all orders that total more than $50 or more than five items. The cutoff is $35 in the example below.
Ways to increase average order value
You can raise your average order value in a variety of ways, and these are just a few of them. Try out various tactics to see which one suits your company the best. Keep in mind that even a modest rise in AOV can have a significant effect on your revenue.
Here are the 9 ways to increase average order value:
- Boost your website’s social proof
- Test out different website copy
- Make customer service a priority
- Include upsell options
- Include cross-sell options
- Bundle products together
- Add limited-time offers
- Use exit-intent popups
- Add a free shipping threshold
