5 Strategies To Increase Your Average Order Value (AOV eCommerce)
Getting customers to purchase many items and invest more cash on every purchase is a fantastic way to boost sales and earnings.
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How to increase your AOV?
Average Order Value (AOV) is the measure of how much Cash your website visitor spends every time they put an Order via your online shop.
To calculate AOV, follow this simple method:
Your AOV will tell how successful your Most Recent marketing attempts were predicated on how much you’d invest to get each order.
Your AOV may also give you insights into your customers’ buying habits.
Particularly when calculated for certain customer segments–and also allow you to identify your most valued Clients.
Coupled together with your conversion rate, you can use your AOV to project just how much revenue you can expect to make by a particular number of website visits.
Why worry about increasing AOV?
If you have an online store then you understand that In most commerce markets, obtaining new clients is hard and costly, it may often require a considerable investment in demand generation marketing and advertising.
You have developed the best website design and used the world’s best eCommerce store Magento, Spent 1000’s of $ in advertising, and worked on all the factors of SEO.
Congratulations! you have the traffic but are getting full ROI for all your investment and efforts?
Increasing your AOV is among the very effective and price-efficient tactics to improve earnings and cash flow (an indication of any healthy Company ).
Whereas increasing website traffic usually involves exploring and Executing complex marketing strategies to attract new clients, increasing your AOV might be as straightforward as installing a plugin to your shopping cart.
Optimizing your website for higher AOV may also help you reinforce your company against sudden drops in traffic.
You may get less traffic initially but see greater earnings because of greater AOV and more targeted advertising practices.
Irrespective of why your visitor numbers, your organization will be in a better position to have an optimized AOV.
P.S: For this case study, we are assuming a market study of a fashion store that is using the Magento Platform.
Just how do you get your customers to purchase more items and spend more cash with every buy? This article outlines five approaches you can allow with very little or no excess investment.
I. Product Grouping Or Bundles
Product bundling makes purchasing many items at once easy. Bundles often group the main item and its accessories (e.g. a dress with a matching necklace and shoes); or products that are utilized for a {Similar purpose (for instance, a coat, scarf, and gloves). There are several techniques to make bundles or packages.
In the fashion business, many online stores offer the ’Shop the Look’ option, which enables clients to buy a whole outfit (often three or four things ) in one click.
Perhaps this is a fantastic method for raising AOV, in addition, it can also help personalize the consumer buying experience.
While bundles might be discounted to lure customers to purchase, they do not always need to be. Occasionally the advantage of getting items prepackaged collectively is sufficient for entice customers to purchase.
Test different Bundling/ pricing approaches to ascertain which ones will offer the ideal conversion and earnings results
II. Up-Sell and Cross-Sell
When a visitor is browsing your website they are often in shopping or ready to purchase mode.
This is your chance to suggest other products which may interest them and raise your AOV.
Listed below are two powerful advertising and marketing strategies you can utilize:
Up-Sell :
Suggest a bigger or expensive variant of a product amongst which the customer is watching.
For instance: When the consumer is considering your little clutch, suggest a similarly styled handbag at a higher price point.
Cross-Sell :
Suggest additional things associated with the one your client is watching.
For instance: When the client is considering a bracelet, then recommend a fitting dress or related accessories.
Using the Magento Storefront, this merchant has placed product attributes feature, Rebecca Minkoff is using cross-sells technique to sell related accessories & clothing items.
III. Customer Reward Program
If you’d like clients to spend more on your products, you have to provide them with an incentive.
Listed below are a couple of incentives that could help raise your AOV:
Promotions or Discounts :
Provide discounts for spending additional money or purchasing additional products. Or else, offer invaluable services for example like free shipping when clients spend a particular amount.
Reward Points :
Rewarding clients with factors for spending additional money on your Website is a Terrific Way to increase AOV (and fostering customer loyalty).
The more clients buy, the more points they get.
Factors can afterward be redeemed for discounts, free gifts, coupons, along with other incentives, or any creative point you can think of.
Above is a perfect example of a promotions tool that offers a rewards point system.
See, How smartly MADISON uses the Reward program to increase AOV.
IV. Personalization and Recommendation
Clients usually respond when presented with merchandise supplies that meet their demands. The more important the item offers, the more inclined they could purchase. There are two important procedures for helping clients find the ideal merchandise:
Personalization :
Marketing is successful when it is 1:1.
When customers are searching online, it’s easy to spot them and personalize their shopping experience.
This may be as straightforward as personalizing a welcome message with your client’s name, or as complicated as personalizing promotions using customer-specific landing pages which contain a specially curated product catalog.
Tips & Recommendations :
Clients often don’t know just what do they desire or need while surfing at the first stage, and hence they opt. for search engine help for selecting solutions.
As a retailer you can use the information you’ve gathered about your clients to help recommend products for them:
- Search Queries: Recommend stocks based on a customer’s search phrases.
- Location-Based Recommendation: Propose suitable products based on customer’s climate/weather, state laws, and other geographical specifics.
- Using Buying History: Use a customer’s past shopping to recommend other goods.
- Client Segments: Use the shopping histories of clients with similar demographics to recommend products.
V. Return Policy
Among the biggest concerns customers have about shopping on the internet is if they could return the products if required.
If a client believes that returning something will probably be expensive or hard, he/she will purchase fewer things to minimize their return risk or might cancel the order.
But, research has shown that the more things customers purchase, the longer they really keep it (meaning that they do not return more things once the process is simple, they only need to understand that simple returns are an option).
Conclusion
Simplify Things and Personalize Wherever You Can – This Is The Bottom Line
”Clients want to buy more and will purchase more” – if you create the purchasing experience simple and pertinent to them.
The five approaches outlined in this guide are very different in the way they get clients to increase the amount they spend on each purchase.
But every one of those strategies is comparable in that they simplify and customize the shopping experience.
Whether you are bundling a few products to one SKU or supplying free return shipping, you are eliminating the friction which slows down customers and prevents them from purchasing more.
And if you are recommending products based on a client’s demographics (location, age, and sex ) or activities (buy history, search questions, and merchandise views), you are ”linking” with your customers and personalizing the shopping experience with content that is personalized.
As you apply the above-listed five revenue-enhancing approaches, consider other ways you may be able to simplify and customize the shopping experience to your clients and optimize your own AOV even further.
I recommend having a Magento Hosting platform for your website in place of standard hosting, this will give you a faster website which directly means more orders for you.
Please feel free to share your Ideas over AOV (Average Order Value) in the comments below or feel free to ask any question you may have.
Shashi kant Pandidhar
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