What is Average Order Value (AOV)?
Increasing the average order value (AOV) is an effective strategy to grow your e-commerce business out of the 7 strategies. A higher AOV means that you are selling more products per customer, which can lead to a significant increase in profits.
Why is increasing AOV important?
+ Increase revenue
When you sell more products per customer, you can increase your revenue without having to acquire more customers.
+ Improve profitability
A higher AOV means that you are making more money on each sale. This can help to improve your profitability, even if you are selling fewer products overall.
+ Reduce marketing costs
When you can get customers to spend more on each purchase, you can reduce your marketing costs per customer. This is because you will need to spend less money on acquiring new customers.
+ Create a more loyal customer base
Customers who spend more on each purchase are more likely to become repeat customers. This is because they are more likely to be satisfied with your products and services.
How to increase AOV?
1. Offer free shipping
On orders over a certain amount, businesses can provide free shipping to their customers. This is a great way to encourage customers to add more items to their carts.
2. Cross-sell and upsell related products
This means suggesting complementary products to customers who are already considering buying something. For example, if someone is looking at a pair of shoes, you could suggest a matching handbag or belt.
This is a great way to sell multiple products together at a discounted price. For example, you could create a "spa day" kit that includes a face mask, body lotion, and bath bomb.
4. Offer loyalty programs
This is a great way to reward customers for their repeat business. Loyalty programs can give customers discounts, free shipping, or other perks.
5. Run promotions and discounts
This is a great way to attract new customers and encourage existing customers to buy more.
6. Optimize your checkout process
Make sure your checkout process is easy and convenient for customers. This will help to reduce abandoned carts.
7. Personalize marketing messages
Target your marketing messages to specific customers based on their interests and past purchases. This will help you to increase the relevance of your offers and improve your conversion rates.
- Improve your product descriptions: Make sure your product descriptions are clear, concise, and informative. This will help customers to understand the value of your products and make them more likely to buy.
- Provide excellent customer service: When customers have a positive experience with your business, they are more likely to come back and spend more money.
Real-life examples of tactics that increases AOV
Interested to see more real-life examples? Visit konigle.com.
1. Check out the 6 other strategies to grow your profits