What is the Average Order Value or AOV?
Average Order Value (AOV) tracks the average dollar amount spent each time a customer places an order on your ecommerce business website or mobile app. To calculate your online store’s Average Order Value, simply divide total revenue by the number of orders.
Why you need to keep a track of your store Average Order Value?
AOV is a key metric that retailers keep track of to understand their customers’ purchasing habits. And by measuring your AOV, you can adjust your product pricing strategy and marketing resources accordingly.
So How can you convince your customers who regularly stop by your website and shop for 80$ per order to pay 160$ instead and be twice as happy?
The answer is pretty simple, you can use the upcoming 5 ways to increase your store AOV. Let’s see how, shall we?
[bctt tweet=”Increase AOV Tip 1: Product Recommendations ” username=”RevampCRM”]Try adding popular products, or products that other customers purchased in addition to what’s currently in the user’s cart to your product or checkout page.
[bctt tweet=”Increase AOV Tip 2: Cross-sell or Up-sell ” username=”RevampCRM”]Display relevant accessories or complementary products
Try hand-picking products that pair well with the item in the user’s cart, such as accessories or add-ons. For example, a mouse for a laptop.
[bctt tweet=”Increase AOV Tip 3: Set order minimums for coupon/Free Shipping or Free Gifts ” username=”RevampCRM”]Provide an incentive when customers spend a minimum amount on your store. Consider setting a minimum order amount for free shipping.
[bctt tweet=”Increase AOV Tip 4: Set Up a Loyalty Program ” username=”RevampCRM”]Loyalty programs act as a retention strategy and help forge relationships between customers and a brand, as well as helping you increase the average order value of your store.
[bctt tweet=”Increase AOV Tip 5: Bundle Products or Create Packages ” username=”RevampCRM”]Try creating product bundles that cost less than if the same items were purchased individually. By bundling products, you’re effectively increasing the perceived transaction value. This satisfaction customers get from taking advantage of a deal can help increase sales.