What is average order value?
Average Order Value (AOV) and how to increase it, is an essential revenue concept for any SMB owner to understand. Basically, your store’s average order value (AOV) is the average amount of money each customer ends up spending per transaction. You can calculate your average order value using this simple formula:
Total revenue / number of orders = average order value
Why Average Order Value matters:
Some benefits of increasing your AOV are readily apparent, like increasing your sales and profit margins, but there are other advantages as well. When you increase your AOV it can potentially act as a buffer if your income dips due to traffic sources disappearing due to SEO changes or any other potential, unknown, …show more content…
Be sure to set your threshold slightly above your average transaction total, but not to much higher. If your average transaction is $30 setting free shipping at $75 is quite a jump for your average consumer.
3. “Cash- Back” - Brings Them Back!
While “free” is undoubtedly the single most effective draw in sales, “cash back” isn’t far behind. You can use the same marketing strategy to increase your average order value with cash-back offers, setting a spending threshold slightly above your current average order amount with a cash-back reward to be used on the customers next visit. This not only creates an immediate AOV increase but also encourages return visits, potentially turning one-time shoppers into loyal customers.
Once you’ve determined your threshold, make your offer bold and clearly visible on your webpage. Display your free shipping banner front and center on your website homepage and on every page a customer clicks. Customers will keep that target number in mind as they shop and add products to make it to the free shipping threshold.
4. Up Sell - It’s …show more content…
Personalizing customer shopping with related products can increase the number of products purchased, raising your average order value, by showing shoppers items they are already interested in. Two effective methods of offering related products are:
•Related Links - Context is crucial when utilizing product recommendations. You should ensure the products you recommend are clearly related to, and comparable with, other products your customer has viewed or added to their cart.
•Bundling - Another good way to offer related products and increase your average order value is by offering product bundling. Product bundling is simply offering the customer a combination of pre-select, related products, often at a discounted price.
Offering related products and bundled offers customizes the shopping experience for your customers. If you don’t overwhelm your customer with dozens of products your offers will be helpful without appearing pushy. Utilizing related product tools provides individualized offerings relevant to your customers interests and can assist your customer by reducing browsing time and decreasing web navigation
Average Order Value (AOV) and how to increase it, is an essential revenue concept for any SMB owner to understand. Basically, your store’s average order value (AOV) is the average amount of money each customer ends up spending per transaction. You can calculate your average order value using this simple formula:
Total revenue / number of orders = average order value
Why Average Order Value matters:
Some benefits of increasing your AOV are readily apparent, like increasing your sales and profit margins, but there are other advantages as well. When you increase your AOV it can potentially act as a buffer if your income dips due to traffic sources disappearing due to SEO changes or any other potential, unknown, …show more content…
Be sure to set your threshold slightly above your average transaction total, but not to much higher. If your average transaction is $30 setting free shipping at $75 is quite a jump for your average consumer.
3. “Cash- Back” - Brings Them Back!
While “free” is undoubtedly the single most effective draw in sales, “cash back” isn’t far behind. You can use the same marketing strategy to increase your average order value with cash-back offers, setting a spending threshold slightly above your current average order amount with a cash-back reward to be used on the customers next visit. This not only creates an immediate AOV increase but also encourages return visits, potentially turning one-time shoppers into loyal customers.
Once you’ve determined your threshold, make your offer bold and clearly visible on your webpage. Display your free shipping banner front and center on your website homepage and on every page a customer clicks. Customers will keep that target number in mind as they shop and add products to make it to the free shipping threshold.
4. Up Sell - It’s …show more content…
Personalizing customer shopping with related products can increase the number of products purchased, raising your average order value, by showing shoppers items they are already interested in. Two effective methods of offering related products are:
•Related Links - Context is crucial when utilizing product recommendations. You should ensure the products you recommend are clearly related to, and comparable with, other products your customer has viewed or added to their cart.
•Bundling - Another good way to offer related products and increase your average order value is by offering product bundling. Product bundling is simply offering the customer a combination of pre-select, related products, often at a discounted price.
Offering related products and bundled offers customizes the shopping experience for your customers. If you don’t overwhelm your customer with dozens of products your offers will be helpful without appearing pushy. Utilizing related product tools provides individualized offerings relevant to your customers interests and can assist your customer by reducing browsing time and decreasing web navigation