You want more revenue right? Just to remind you, there are only 4 ways to do this:
- get more customers;
- increase transactions frequency per customer;
- raise your prices;
- increase average order value
“Money is plentiful for those who understand the simple laws which govern its acquisition.” – George Clayson, author of The Richest Man in Babylon
So there is money on the table.
Learn how to make them yours by focusing on the average order value.
This will have an immediate impact on your revenue. Some ways work better than others, depending on your business case.
First, watch your average order value for the past three months.
We’ll need this late for help on some specific tactics. From Google Analytics get this information: (Conversions -> Ecommerce -> Overview)
For the past three months let’s say you have a $250 average order value. Here are some ways to increase the basket size:
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1. Offer free shipping over a limit
The first tactic is to offer free shipping. We asked you to know your average order value because the free shipping offer can be done for orders over this value.
Because free shipping has a lot of other implications and it’s a tricky subject. Take care of the following:
- offering free shipping for an order above the average order value will increase AOV
- the additional shipping charge could reduce total transactional
- might decrease your profit (you will support shipping costs) but will increase number of customers.
Find the right balance and you’re ready to go with this one. Don’t forget to make the free shipping threshold visible on the entire site.
2. Populate up-sells, cross-sells recommendations on all product pages
While up-selling make your customers buy more expensive products, cross-selling makes them buy more products. Both mean more revenue per order.
Our recommendation is to put up-sells on the right of the page (products with a higher value), and cross-sells (complementary products) on the bottom, or under the main image of the product.
Test various combinations and prices to see which ones bring the highest AOV. Vibetrace easily allows you to put product recommendations on your website.
3. Offer incentives for larger orders
This tactic to increase order value depends on what you’re selling. It’s hard to make people buy two tables instead of one. Still, offering discounts depending on the amount of products bought can also considerably increase your AOV.
One of our customers, selling office supplies, does this by clearly showing the exact of money saved if they will buy larger volumes. The results was an increase of the average order value of 11%.
4. Product bundling
Product bundling is an old marketing technique by offering several products for sale as one combined product. The bundle price is slightly lower than purchasing each of the items separately. This increases the amount spent on the order, while making the customer feel like they got a bargain.
The downside of product bundling can be catalogue management and inventory. Ask your ecommerce solution provider if this can be done from a technical point of view.
5. Limited period/time offer
One of Robert Cialdini persuasion techniques is urgency. Only by adding a limited duration to the special offer can create a sense of urgency among visitors.
Along with the scarcity method (only 3 in stock), this method will encourage them to buy more in one act.
Do’s and Dont’s
- Don’t try all these tips at once. Implement them one by one to see which works and what’s the increase;
- A/B test these strategies to get the best results;
- Find a balance between discounts offered and your profit margin;
Here’s another 20 ways to Double your Average Order Value fast:
FREE SHIPPING THRESHOLD:
Offer free shipping for orders over a certain amount, which can incentivize customers to add more items to their cart to reach the threshold.
Example: “Get free shipping on orders over $50!”
BUNDLE OFFERS:
Bundle products together at a discounted rate, which encourages customers to purchase multiple products at once.
Example: “Buy a shampoo and conditioner bundle for 15% off!”
PRODUCT RECOMMENDATIONS:
Use product recommendations to suggest complementary products to customers that they might be interested in adding to their cart.
Example: “Customers who bought this dress also bought these shoes.”
UPSELLING:
Offer more expensive or higher-end versions of products as alternatives to what customers have already added to their cart.
Example: “Upgrade to our premium model for just $50 more.”
CROSS-SELLING:
Offer related products that customers might also be interested in.
Example: “Customers who bought this book also bought these bookmarks.”
LIMITED TIME OFFERS:
Offer discounts or freebies for orders placed within a specific timeframe.
Example: “15% off all orders placed in the next 24 hours!”
LOYALTY PROGRAMS:
Offer incentives for repeat customers, such as discounts on future orders or exclusive access to certain products.
Example: “Join our loyalty program and get 10% off your next purchase!”
GIFT WITH PURCHASE:
Offer a free gift with a minimum purchase, which can motivate customers to spend more to receive the gift.
Example: “Spend $100 and get a free tote bag!”
VOLUME DISCOUNTS:
Offer discounts for larger quantities of items purchased, which can encourage customers to stock up.
Example: “Buy 3 or more and get 20% off each item!”
BUY ONE GET ONE (BOGO) OFFERS:
Offer a free item with the purchase of another item, which can incentivize customers to add more items to their cart.
Example: “Buy one shirt, get one 50% off!”
PERSONALIZED RECOMMENDATIONS:
Use data to personalize recommendations for each customer, such as showing them products that other customers with similar purchase histories have bought.
Example: “Based on your purchase history, we think you’ll love these products.”
ABANDONED CART EMAILS:
Send emails to customers who have left items in their cart, offering a discount or other incentive to complete the purchase.
Example: “Come back and get 10% off the items left in your cart!”
EXIT POPUPS:
Use exit popups to offer customers a discount code or other incentive to complete their purchase before leaving the website.
Example: “Wait! Don’t leave without getting 15% off your purchase!”
LIMITED EDITION PRODUCTS:
Offer limited edition or exclusive products that customers can only purchase for a limited time.
Example: “Get our limited edition holiday gift set before it’s gone!”
PRODUCT REVIEWS:
Include product reviews on your website to help customers make informed purchasing decisions, which can lead to them adding more items to their cart.
Example: “See what other customers are saying about this product.”
VIP PROGRAMS:
Offer exclusive benefits to VIP customers, such as early access to sales or free shipping on all orders. This can encourage customers to spend more and become loyal to your brand.
Example: “Join our VIP program and get free shipping on all orders!”
GIFT CARDS:
Offer gift cards as an option for customers to purchase, which can lead to them spending more money than the value of the gift card.
Example: “Give the gift of shopping with a $50 gift card!”
FINANCING OPTIONS:
Offer financing options, such as installment payments, which can make larger purchases more affordable and encourage customers to spend more.
Example: “Buy now, pay later with our installment payment options.”
DONATION INCENTIVES:
Offer to donate a portion of sales to a charitable cause, which can incentivize customers to purchase more.
Example: “10% of all sales this month will be donated to our partner charity!”
