Increase AOV Without Add-to-Basket Hesitation

As your company expands, average order value (AOV) is a helpful indicator to keep an eye on. It’s usually one of the first metrics that company owners look to enhance to boost sales or maximize return on advertising investment. Finding new clients is typically marketers’ first thought when looking to boost revenue, but there are other options as well. The average order value is another way to look at revenue growth. Here, we look at the multiple strategies you can use to easily increase AOV.

Instead of attempting to attract new clients, you can get more value out of the ones you already have by raising your Average Order Value (AOV), also known as Average Basket Value (ABV). This implies that you can expand the company without incurring exorbitant expenses for marketing, advertising, and other expenses.

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AOV, or average order value, serves as one of the most crucial KPIs that eCommerce companies should monitor. It is exactly what it sounds like the mean dollar amount of each order that is placed with your company over a given time frame.

In other words, you can make more money from the same number of consumers if your AOV is higher. This implies that you can raise sales without also raising marketing and sales expenses. AOV optimization is just one more tool that marketers have at their disposal to expand their clientele. So, let’s get to the core of AOV and learn how you can increase it, in the following details.

How to Increase AOV E-Commerce

After going over the fundamentals, let’s discuss some tried-and-true optimization techniques that will enable you to maximize the value of your devoted recurring customers and increase the mean value of orders for your e-commerce business.

Product Bundling

Product bundling is a pricing approach that involves combining two or more products into a single unit and offering them at a discount. Therefore, you might offer peanut butter and jelly as a PB&J bundle for $7 instead of selling them separately for $5 each. This would encourage customers who might have only thought about purchasing one or the other to buy both.

Fresh Default Settings

Although it might not seem like it, minor adjustments to your Product Detail Page (PDP) can significantly raise your average order value (AOV). It’s one of the PDP best practices that we advise. Changing the default purchase setting on an eCommerce store’s product page is one of the most significant modifications. One of the simplest and most sensible methods to raise AOV is to modify your default settings.

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Leverage Personalization

If you’re wondering why your AOV is low, there can be a more subtle and intangible factor at work, such as an indifferent customer experience that results in dissatisfied consumers. A growing number of customers are stating that they value and anticipate a personalized experience. Furthermore, customization boosts income by 10 to 15% on average. DTC brands, in particular, benefit from personalization to the tune of 25% more than other businesses. Put differently, enhancing personalization can positively impact your AOV.

Utilize One-Time Add-Ons

Yes, we do specialize in subscription services, but it doesn’t mean we ignore one-time purchases. To be more precise, one of the best methods to persuade subscribers to spend a little more on more products is through one-time add-ons; in the end, recommendations are quite influential. One of the best ways to get your consumer base to try a fresh item is to put new products in front of them while they manage their subscriptions.

Leverage Reviews

Reviews increase social proof and reassure your members about the quality of the product they are purchasing. Empirical evidence indicates that when higher-priced products are combined with positive customer evaluations, conversion rates rise by an astounding 380%. Building trust with your subscribers and persuading them to purchase the more expensive items can be achieved by encouraging happy customers to write reviews and then utilizing them on your website, PDP, consumer account portal, and social media.

Ways to Increase AOV

Before putting the following strategies into practice in your online store, thoroughly review your statistics to determine the root cause of your poor AOV. You can select the best course of action to increase your AOV in the following ways:

Highlight Trending Products

To increase the visibility of your popular products, highlight them on your website. Make sure your product pages have attractive photographs, and if you have any deals, make sure they are prominently displayed. These tactics can raise the average order value.

Utilize Appealing Product Pages Designs

Your conversion rate is impacted by the language, colors, layout, and graphics you choose. To attract clients, make sure your products have greater pricing levels, discounts, and packages available. The Baymard Institute claims that optimizing the checkout design increases conversion rates by 35%.

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Provide Social Proof

Online purchasing decisions are significantly influenced by social proof, such as testimonials and reviews. Customers who see positive ratings for online firms will spend 31% more, according to Invesp. Put all those wonderful reviews on your website in a strategic way to raise the average order value.

Personalize Shopping Experience

Customers will be more willing to spend money with you if you use data to provide them with more individualized experiences. You can utilize your customer’s order history to determine their preferences and create products and marketing campaigns specifically for them. An increased average order value is the result of this focused strategy.

Offer Product Discounts

Excluding items from an order can increase its average value. But specify a minimum spend rather than just lowering the purchasing price. For instance, you may provide customers who spend $90 or more a $10 discount. A larger average order value is the result of volume discounts offered by certain online retailers. Additionally, displaying the financial benefits that customers receive from making several purchases encourages them to spend more, which increases AOV.

Offer a Loyalty Program

One of the best ways to boost client retention and develop brand ambassadors is through a loyalty program. Participants in the program might accrue points or savings on particular goods. These are your recurring consumers, thus your chances of marketing to them are higher, and advertising to them is less expensive. The average order value increases as a result.

Offer Special Discounts for New Customers

One of the best ways to get new consumers to become repeat customers is to entice them with unique offers. Bundles are available for first-time purchasers. Customers will return for more if they like the merchandise and the shopping experience, which will raise the average order value.

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Why It Is Important to Increase AOV

The fact that raising average order value increases income without raising marketing or sales expenses is one of the key reasons you should strive for it. Increasing your AOV also has the following advantages:

Increased Revenue

Your revenue rises as more products are purchased by customers. Additionally, your revenues will increase if you employ the appropriate tactics. But keep in mind that higher sales do not always translate into higher profitability, so you should carefully analyze your pricing plan.

Boosted Sales

You are selling more merchandise when you raise the average order value. This will lead to an increase in sales for your e-commerce company, which is advantageous for business.

Increased Return on Investment

Let’s say you have a one to six-month repayment time. You’re performing great in comparison to other online retailers. However, by increasing the average order amount, you can shorten this period even further. Higher revenue indicates a quicker route to prosperity and a higher return on investment.

Faster Profitability

When the average order value in your store rises, you can shorten the sales cycle. Your online store will start turning a profit sooner as a consequence. You can also invest more in advertising and other strategies for business expansion.

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Improved Customer Lifetime Value

Another important indicator to consider when assessing the health of your organization is customer lifetime value. LTV and AOV do not conflict with one another. Customer LTV is indirectly impacted by AOV since it influences customer value. Improved LTV is a result of higher average order value; however, the latter’s strategies are more tailored and long-term.

Increased Inventory

Dropshippers are exempt from this. Nonetheless, by carrying out an appropriate average order value plan, you can sell a greater amount of your inventory if you own stock for a physical store or even an internet business. You will be able to sell more of the things you carry if you make adjustments to increase AOV.

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Bottom Line

Increasing the AOV of an e-commerce business is essential for every entrepreneur as it ensures higher profitability and increased growth besides many other benefits. By tactfully working on the ways above you can easily increase your average order value. Additionally, you should also use data management tools and software for optimum results, for which you can contact us at Pimberly.