Every online business is always trying different strategies and innovative ideas focusing on increasing overall revenue generation. Let’s simplify the concept of Average Order Value (AOV) and understand deeply the hidden ways to make the most out of it.
One such way to increase your revenue is by increasing the total expense of each customer per order which will provide you a standardized rate with higher revenue. At the same time, you need to analyze each product which has the greater potential to generate more revenue for you and by which customers do not indulge themselves in second thought for buying your product. It’s bit tricky but an impact it will have on your online business will be substantial and the customers would never prefer leaving your brand instead they would love to add value to your brand by recommending your products.
Let’s explore 15 growth hacks to increase Average Order Value (AOV) for your eCommerce store which will scale up your business with more revenue, more value, and more customers and of course more resources.
1. Incentivise your customers with offers and discounts
When you start an Ecommerce store, people surely visit the first time. They come to check for products that you offer but if they find it expensive or is not under their budget they quickly switch to another website that provides the same product but with discounts and offers. One key point to consider here is to give value for customers or visitors in terms of discounts, this way they get engaged in your store and happily spend more to grab those creamy offers.
When you decrease the value of a product you always have a way to encourage them for spending more by giving those discounts for a limited time. They would definitely stop by and purchase multiple items even if you have kept offers on a single product.
2. Encourage them to buy other Products through Recommendations
This hack is one of the coolest ways to increase your revenue with more sales. This is possible when you create a page for each product, let them scroll down and see an interesting section something like “Customers who purchased this product also purchased other similar products like below”.
3. Showing best products or best sellers
When they browse on your portal for a product or even on the home page you can show products that are trending or the best sellers for a particular category this way they would explore more products and the chances of selling a product to them will subsequently increase.
4. Set a minimum threshold for availing discount
Always customers want to look for offers even in a single product they purchase which has a lower price. This way you cannot set a profit for yourself. But you need to implement a smart sales strategy which undeniably encourages customers to purchase a product with a minimum amount. For example, if you are offering them a T-shirt, you can always ask them to buy 2 more T-shirt in order to avail the discount. This way you can take the price of 2 shirts with lesser discounts.
5. Combo pack offer works the best
It may be hard sometimes to sell a single product with a discount and with the higher order value. So, you can offer them to buy a combo pack with all necessary recommendations, this way it will prioritize their mind to purchase the product it’s because you are offering them as combo pack in a thematized approach.
6. Offer a Freebie
A word “free” has all the hidden powers that may change the course of time for any brands. You can always offer a freebie along with a product that they purchase in this way you can increase product value almost half of the freebie value and generate more revenue.
7. Encourage Buyers with Customer Loyalty Program
A loyalty program helps you to increase revenue through frequent purchases made by the customers. Ideally, it is good to start giving them points or redeemable codes for their next purchase which can be sooner. This is because if a customer is offered a loyalty program over product categories like food, clothes, gadgets, etc. they tend to purchase frequently. The loyalty program works very well for selected niche product sales.
8. Customized shopper page
It is very important to understand user behavior to generate more revenue and AOV. For this, you can always use some handy tools which will guide you to identify user behavior, interest and what they really expect. When the page is customized as per their needs they automatically feel comfortable and trust in your store. This results in purchasing more orders with greater value thereby you can increase the Average Order Value.
9. Upselling is the strongest weapon in marketing
Obviously, you would always want a customer buys a product from your store. But what if you display them other similar products relevant to them. This way you encourage them to make more orders thereby increasing your AOV.
10. Financial assistance for high-end products
You are well aware of the fact that it may not be possible for every customer to make full payment mainly for electronics, home appliances or other larger budgeted products. In such cases, you can set a minimum purchase threshold above which they can avail the offers like minimum or free interest rate, credit card offers, and other financial benefits. This will ease their purchase decision and will be ready to pay more through AOV tactics and ultimately help you generate more revenue.
11. Retargeting based on their browsing history
When they search for any product you can track their browsing history and recommend them such products of the same category or maybe of the same value. This way you can indulge them in buying more and look for other products as well. Here you get two benefits: one is you earn more revenue because they are ordering more products and the second is they are spending more time on your website this also boosts your overall visibility.
12. Attract first time buyers with Average Order Value
The first thing here to understand is their mindset and their requirement. You can set a threshold for the above which if they buy anything they get special coupon codes, offers or even discounts but only first time. This way your offer is circulated among their friends and relatives also giving you decent price value and even loyal customers.
13. The art of Price anchoring
This is one of the best tactics to direct them for buying higher priced products than the lower-priced products. Place two lower-priced products and in between them place a high-priced product this way when they see the first product it clicks their mind to some extent but when they look for a second product which is, of course, high-priced they will definitely finalize that product and buy it.
14. it’s time for a contest or a quiz
One of the most influential strategies to engage the customers is by organizing a quick contest or a quiz. This will keep engaged with your portal for a longer time in order to win attractive prizes. As a prize, you can offer them a product and coupon for next purchase or you can offer them discount coupons which are exclusive for them and highlight the names of winners so that they feel more special.
15. Lightning deals through Time-sensitive offers
If a product has a value of say $300 then you can offer them it is just $130. By doing this your sales graph grows tremendously and also people would prefer buying more very quickly and grab many relevant products for them as early as possible without any second thought.
When you understand every customer’s behavior, requirement, mindset, priorities, interests all you can sum up them and create a great strategy with these 15 growth hacks to increase Average Order Value (AOV).