Easy Ways to Increase Your Online Store’s Average Order Value
One way that an online store’s success is measured – in terms of analytics at least – is the value of its average order.
Average order value (AOV) is the average amount of money each customer spends per transaction with your store. You can calculate your average order value using this simple formula: Total revenue / number of orders = average order value. And obviously the higher that number is, the better.
What many businesses do not realize is that increasing their stores AOV may be easier than they imagine and that it can be achieved not by changing the products they sell but by making a few tweaks to their online store itself. Here are just a few suggestions:
Provide Product Recommendations
When shopping online consumers will often head straight to the checkout page to complete their transaction. Offering product recommendations can delay that journey and potentially increase the value of their shopping cart when they do finally check out.
The data you use to provide product recommendations is up to you. There are several apps and softwares available for all the most popular online retail content management systems that will allow you to offer product recommendations based on site viewing history, previous purchases (for those all important returning customers) and product popularity.
You can even provide recommendations based on your own business priorities. You might be looking to sell some slow-moving stock, for example. Product recommendations offer a great way to get traction on those products.
Another way to increase your AOV is to make use of cross-selling tactics after a customer has added an item to their cart. For example, if the customer has a candle lamp in their basket it only makes sense to nudge them towards the section of your site offering the candles they will need to make use.
Set Minimums for Discounts
A lot of larger online retailers, including Amazon, have long made use of this tactic and for good reason; it works. By setting minimum purchase amounts in order to score an extra perk – free shipping is a popular one – you can easily entice customers to spend a little more than they had intended.
Other examples of minimum order incentives could include offering a coupon or free gift. For example, giving a 15% discount on orders over $75 or a free t-shirt on all orders over $100. Consider adding a promotion bar or pop up on your website’s homepage to immediately draw attention to the fact that you are offering a minimum order incentive.
Bundle Products or Create Packages
If you want customers to purchase more items, try creating product bundles that cost less than if the same items were purchased individually.
By bundling products, you’re increasing the perceived value of a customer’s purchase. One great approach to product bundling is by offering a package of products that create the all-in-one solution for the desired experience.Koehler Home Decor is a wholesaler of home decor accessories and unique gifts. Source quality wholesale merchandise at KoehlerHomeDecor.com and find tips for promoting your business on our blog.