In the eCommerce industry, the main game is all about increasing your revenue. If you were to conduct a survey and ask eCommerce merchants their aim of providing loyalty programs, free or faster shipping, customer service, and marketing efforts, it would surprise you to discover that all of these are geared toward making more money.
What is eCommerce AOV?
Every business is focused on making a profit and boosting revenue. A meaningful way to boost your store’s income is to increase the amount your customers spend whenever they visit your store. You can do this by increasing your average order value (AOV).
Any profitable and successful business pays attention to their AOV since it helps them identify revenue-generating opportunities (cross-sells and upsells), understand the buyer’s journey, and customer motivation. Improving your average order value helps to promote conversion optimization, improve returns on advertising, and increase your customer lifetime value.
Strategies to Increase your eCommerce AOV
Your AOV has an impact on your revenue, notwithstanding how small it might be. It can result in more remarkable growth in your business. However, the primary challenge is how to get customers to spend money or buy from your store consistently. Here are proven strategies you can implement to increase your eCommerce AOV.
Bundle products and offer them at a discounted rate can help improve your AOV because customers will pay more to get more. For instance, you run a shoe company, you can offer a 35% discount if a particular product or shop for a product above $300. Another option is to pair bestselling products with those that don’t move the market. Well, you can make it easier by permitting your customers to select the product bundle of their choice from a limited catalog.
The secret is to sell more by combining products. The more your customer perceives the value of a combined product is worth it; they will be willing to pay for it. Therefore, make your bundle product worth paying for.
Create a loyalty program
You can take advantage of your loyal existing customers to increase your eCommerce AOV. Interestingly, the success rate of you selling to a new customer is between 60 to 70%, whereas the rate of success to a new customer is barely 5 to 20%. You can design a unique loyalty program that allows rewards for customers who spend higher when shopping. You can offer loyalty programs such as free shipping, discount on selected items, and early access to new products.
Use upsell and Cross-sell
Attract more high-value sales from existing customers using cross-sells and upsells. Upselling involves asking buyers to buy more expensive products that complement existing products to increase their order value. For instance, a shoe brand suggesting a sander at checkout or a customized belt to complement what is already in the cart.
On the other hand, cross-selling involves selling a different product to your customer. For instance, if you sell computer computers, you can suggest a mouse pad, screen protector, or keyboard during checkout. With this, you offer the buyers the opportunity to improve their original purchase value.
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