Who does not want high traffic and conversion rate for his/her online business? However, making this thought a reality requires lots of planning, effort, and the right way of execution. If the order values of your online store are going consistently low or you are looking to improve the same value, you should not skip reading this blog-post.
Average Order Value or AOV is a highly useful metric that lets a businessman monitor the growth of his business. For many smart businessmen, AOV is an important factor that increases revenue or optimizes every ad spend. When more people spend more money on orders, a business makes more money.
Let’s understand this through an example. If the total revenue of your store is $3000 for 150 orders, the average order value is $30. This means that a customer spends $20 for every purchase made from your online store. So, with this AOV, you can convince a customer to spend past that threshold, e.g. free shipping for $25. Although it would help your business stream, it may not entertain you with the highest profit margins.
Increasing average order value is similar to fetching more lucrative opportunities for your business. Below are some strategies to increase AOV and allow your customers to spend more money on your goods or services.
Although it’s commonplace, it compels customers to invest more money and shop for more. To be smart while handling this task is significantly important. The best rule that you can follow while setting up a minimum order value for this kind of shipping is AOV + 15% or 20%.
In case of already having the free shipping, you can provide free next-day shipping for orders of a certain amount. It can be understood like spend X more and get free shipping.
If you think that cross-selling is invasive or aggressive, you are wrong. People generally need a little push for extra items while shopping. It can either be accessories for a dress or some coffee filter with a bag of ground coffee. Try to offer things that can be helpful for the purchase of a customer. However, it does not hurt your margin and bring more for your customers. You can also suggest complementary products and it should not be a dynamic recommendation feed.
Apart from free shipping, your customers want something for free. People love it even if they have to reach a certain order value to get it and which means that they will for the free gift. The strategy should be cool enough so customers can think and purchase with you. Like they should think that if I spend $X amount I would get an additional free gift worth $Y.
This is among some unbeatable tactics. When you create urgency for an offer, you get more attention from your potential customers. AOV is magically boosted by these offers. A report says that the fear of missing an opportunity is stronger and this is where businesses can take benefit. People get convinced that they do not want to miss the offer.
It is similar to bundling. However, the focus is on cost savings. It attracts customers by how the price per single prince drops if they spend an amount to purchase in bulk. It is exciting how customers get attracted to the deal. It leaves no space for bargaining. From cosmetics, lasting groceries, basic clothing, cosmetics, and even subscriptions as well. To attract more, display the total cost savings and profit earned for all deals.
There are some great ways to reach the average order value goals and it is more genius. It is a kind of old psychology that helps you display two similar products with different prices; people are attracted towards the one which costs lesser. It simply makes it easier to decide on the cheaper option. Customers fill their car while ending up spending more than the high price tag.
It works great as you show people that you are doing the business for a noble cause. Indirectly, it helps you increase your AOV. Partner with a charity and give options to your customers to donate for every purchase. The only trick is that they donate only a small part of their purchase. If they want to give more, they will have to spend more.
This trick is quite similar to bundling. However, shoppers have many options to choose from. They can create their own bundle. Plus, they can shop for what fits the best for them and they can go back for new patterns, colors, and frills.
If you are thinking to open your own online store, keep the above-mentioned elements in mind and choose an eCommerce platform made for your business requirements. Consider Shopify as it is great for stores that sell services and goods and require a minimal amount of configuration. An advanced homepage section allows you to serve your business needs in selling either a single product or a handful of products. Shopify can help you with increasing your ROI and business revenue. Contact Source Soft Solutions – the best Shopify eCommerce store development company – for any concern related to store development. Reach us now!
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