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Strategies to Boost Average Order Value

Feb 27, 2025

Increasing Average Order Value: Key Strategies

Introduction

  • Main Issue: Over-reliance on sales and discounts can harm profits by training customers to wait for sales.
  • Objective: Increase average order value (AOV) without making the store unaffordable.
  • Speaker: Tina, with 7 years of experience in revenue and marketing strategies.

Importance of Balancing Conversion Rate and AOV

  • Problem: A high conversion rate is not enough if AOV is low.
    • Example: Selling a $5 product but spending $6 on ads per click.
  • Goal: Balance conversion rates with AOV to maximize revenue per session.

Understanding Average Order Value (AOV)

  • Definition: Total revenue divided by the number of orders.
  • Purpose: Increase revenue without needing more traffic.

Strategies to Increase AOV

1. Product Bundles

  • Purpose: Offer more value in each order.
  • Types of Bundles:
    • Build Your Own Bundles: Allows personalization.
    • Gifting Bundles: Curated for easy gifting, e.g., Mother's Day sets.
    • Classic Bundles: Combine complementary products.
    • Wholesale Bundles: For B2B clients, e.g., using a wholesale landing page.
  • Considerations:
    • Customer needs: convenience, savings, customization.
    • Seasonal opportunities for bundles.

2. Free Shipping Thresholds

  • Strategy: Encourage customers to meet a minimum spend for free shipping.
  • Implementation:
    • Promote threshold via banners and reminders.
    • Recommend low-cost add-ons.
    • Use bundles to help reach threshold.

3. Upsells

  • Timing and Relevance: Key to successful upsells.
  • Stages for Upselling:
    • Pre-Purchase: Suggest complementary items on product pages.
    • Cart Page: Recommend small, relevant add-ons.
    • Post-Purchase: Offer discounts on complementary items, capitalize on purchase moment.

4. Incentivizing Larger Purchases

  • Approach: Offer tiered discounts for buying more.
  • Examples:
    • Buy 2 save 10%, buy 3 save 20%.
    • Spend $100 for a free gift, etc.
  • Focus Areas:
    • Highlight savings with clear messaging.
    • Bulk purchasing advantages for long-shelf life items.
    • Create a dedicated section for stock-up deals.

Conclusion

  • Continuous Improvement: Small changes lead to significant gains over time.
  • Next Steps: Explore more resources on increasing conversions and AOV.
  • Engagement: Encouraged viewers to like and subscribe for more content.

These strategies are rooted in proven psychology and consumer behavior, aiming to increase AOV while maintaining affordability and customer satisfaction.

Full transcript