AOV (Average order value)

Convincing members to buy a multitude of items and spend more on each order is an ideal way to increase sales and revenue. There are 5 easy strategies you can use to entice customers to spend more in your online store.

First let's start by defining what AoV means. Average order Value is essentially the average amount any customer will spend when visitng your online store. The straight forward calculation (revenue / total orders = AOV) can reveal a lot of information about how your store is doing within a given time frame.

One example is if you spend money trying to market your site AOV can help tell you if your efforts were actually profitable or if you should shift focus in a different direction. AOV can also show you how much revenue you should expect to see from a certain amount of visits to your site. It is also very useful in helping to determine your most valuable customers when looking at it based on different customer segments.

Attempting to increase your AOV can be one of the most inexpensive ways to go about increasing the overall profits of your online store. The other option would be to spend time putting together complex marketing campaigns to try to attract new customers and thus increase overall site traffic. Increasing the overall site traffic can include significant costs whereas increasing your AOV can be as straight forward as making your cart system a smoother and more simplified process.

Having a very high AOV can also help out when your overall site traffic goes through a general dip. The reality is that if you are increasing your AOV, then even with less traffic you might still see an increase in the store's revenue. So even if you don't know why people are not visiting your site as much as they used to, you will be in a stronger position than if you had not bothered studying and improving your AOV at all.

The main question you probably have is how can you go about increasing your AOV? Well I will tell you of the 5 simple strategies that you can use to do just that.

Strategy 1) Product bundles are a very good way to start the process off. What this means is that you are giving your user the ability to buy multiple items in one transaction. What this entails is selling an item along with a multitude of accessories that would complement the primary product. Some stores will put bundles up along with a discount to help entice a customer to purchase, though, the discount isn't always required. The convenience of being able to purchase all the items in one simple step can be sufficient motivation to make the customer purchase them. Testing different types of bundles and pricing will help you figure out the most profitable format.

Strategy 2) Often customers browsing your site are prepared to make a purchase - thus suggesting them complementary products that could be of interest to them can help you increase your AOV. For example if a customer is looking at tubs, perhaps suggest that they purchase a matching sink, vanity, or toilet.

Another example of strategies that you can use to increase your AOV would be to offer larger, more expensive versions of what they are looking at. If they were looking at a 23' computer screen, perhaps suggest the 27' one instead while highlighting the benefits.

Strategy 3) Giving your customers an incentive to spend more money on your site can also be a push in the right direction for increasing your AOV. Offering discounts for spending a certain amount or for buying a certain amount of items at in a single sitting can make customers want to buy more. Another great system in the same vein is to offer points based on how much money the customer spends which can later be traded in for free products.

Strategy 4) Personalizing your site towards your customers can also make them want to spend more. Recommending specific offers and products that suit their needs (based on past consumption patterns) can lead to an increase in sales. Even the simple addition of having a welcome message when a returning customer comes back to your site can make them feel significant and thus want to spend money on your site rather than somewhere else. You can even get more sophisticated and offer very personalized discounts based on their past purchases.

Strategy 5) One common deterrent to having customers purchase a lot on any site is if the return policy is not easy and reassuring. If the customers feel it will be difficult and costly to return an item, this perceived elevated risk will make them far less likely to purchase items on your site. Making a return policy that is easy and cost effective for the customer will actually increase your AOV. An easy return policy will have the customer feeling secure in purchasing from your site knowing that returning or exchanging will be hassle free.

On a last note, we recommend simplifying and personalizing your site for the customer wherever it can be done. Customers will buy a lot more from you if you make the whole shopping experience easy and tuned towards them.

The five strategies we went over above are a few of the many that we at Marketing Blendz incorporate into our own Ecommerce platform. If you feel that these can work for your online store or would like to understand more about our platform feel free to get in touch with us at: info@marketingblendz.com or by calling us at 514-667-8675.

Best Regards,
Jason Mackey (a.k.a. Ifking)
Head Programmer