The average order value is the total amount a customer spends on a product while shopping. The eCommerce market is obsessed with the term- average order value. Persuading customers to buy more products in the same buying phase is the way to increase the average order value. This blog will help you understand how to increase average order value and revenue in turn.
Great businesses are well-aware of a buyer’s journey and this helps marketers persuade the customer to increase their buying.
User behavior varies as per the new changes a consumer is going through but continuously studying buyer behavior helps us stay on top of the persuasion game to increase average order value.
Positioning products that match the current requirement of the buyer or making a combo product at a lesser price are some ways to persuade a customer and increase the order value. A regular follow-up and showing your products are scarce make the customer buy more from you and the average value is increased.
To understand your business’ average order value you can use a formula
Total average order value in a month = Total revenue generated in a month/number of orders in a month
Ways to increase average order value
Here are the top 10 ways to persuade your buyer to increase the average order value.
An effortless shopping experience
Nobody likes an app that gets stuck. Create a light-weighted and eye-catching app that makes checkouts easier for the buyer.
Declutter unwanted pages, decrease the load time and get rid of every bit of heavy data. A great shopping experience leverages the chances of an increased average order value. A crystal clear app that has great graphics and is speedy at work is always a top choice for a visitor.
If you don’t go over the board to get known, you will remain unknown. Market your business heavily at first and deliver a great experience to convert a one-time buyer to a lifetime one and increase average order value.
When you start a business you should:
Use SEO to enhance your discovery in the market
Spend on advertising
Run flash sales programs
Host sale events
Promote hugely on social media
These tactics will boost your starting-out marketing and create awareness and increase the average order value.
Let customers window-shop
When you let customers browse products for free, the possibility of persuading them to make a purchase is higher. Make room for customers who want to check products out on your site and don’t demand any contact details in return. An average order value grows when a visitor chooses your business over others. When customers choose you over your competitors, the average order value booms.
Upsell and cross-sell
Allow customers to add to their orders after checking out and suggest complementary products based on the current purchase. Create compelling copy content for persuasion and suggest the precise product. This buy will increase the average order value.
Creating product bundles helps you upsell the products.
Up-sell, cross-sell, and up-leveling all mean essentially the same thing: getting more of your customers to purchase additional products from you. Doing this effectively can increase average order value.
Give customer rewards
Discounts, cashback, and rewarding points increase the average order value. Offer discounts on spending more money or offer a combo offer at a slightly higher price.
You can also offer free shipping or speed delivery when the customer spends more. Offer a combo deal that costs more but allows you to increase your average order value, by offering free shipping as an added incentive.
Promote products of higher average value
Build great products and set a higher average value, then promote these products on your homepage in different ways. When you analyze your site performance, filter out the highly trafficked pages of your site and encourage higher average value products on those pages. When you want to increase your conversions and generate more profits from your website, strive to make your products appear on top in the SERPs (Search Engine Results Page). Promoting certain products through email campaigns, social media ads, and newsletters increases the average order value. The more visibility you give these products, the more likely they are to sell!
Create product bundles
Product bundling is a way of buying multiple items at once. Bundles often include a primary product and its accessories that can be matched with the other one. Product bundling is the act of buying multiple products (2 or more) together in a single package.
Product bundles are proven to increase the average order value and it is one of the convenient ways to make customers buy multiple items at once to increase the average order value.
Give a gift card
Gift vouchers are an extraordinary method to increase average order value, in any event, while offering little products free of charge. If you give them a gift card, they’ll be bound to spend once more.
You want to ensure that your item costs are sufficiently high that your present card doesn’t bring about a free buy for your client, as that would cause a decrease in average order value. Likewise, make sure to ensure that customers realize they can’t utilize the present card on the ongoing buy or delivery (assuming you offer free + transportation on specific items).
Ultimately, offering gift cards promotes future buys, which decreases future promotion spending. It’s a great reward to give clients when deals are occasionally lower. Less costs on getting customers to increase average order value.
Try not to offer this deal all year as it can lose its viability over the long haul.
Show them bigger orders saves money
Saving money will always be trending. Make customers happy when they make a big purchase and remove the guilt emotion from the purchase.
Promote bulk offers to save money and persuade the customer to make a bigger purchase in a good amount to increase the average order value.
Showing customers that they win over every time they add an extra product keeps the customer wanting to save more.
The more they think they are saving the more they buy and the more the average order value skyrockets.
Offer great deals on first-time buys
Offering deals to your new guests can increase the average order value. Serve this new audience with irresistible one-time offers when they purchase products of a higher average value or in bulk. They already like the shopping experience on your site when they make a purchase.
Now, when the customer comes to you for their next purchase, it will be much easier to tempt them with an exclusive offer and limited-time deals and increase the average order value.
A quick summary
Calculating the average value of your business regularly helps you understand what products are performing well. This insight helps you to get rid of bad-performing products and reduce production costs.
Increasing the average order value is a convenient way to keep a hold of your customers and cut off customer acquisition costs and make rising sales with the existing customer base.