03 May 5 WAYS TO INCREASE THE AOV OF YOUR E-COMMERCE
5 WAYS TO INCREASE THE AOV OF YOUR E-COMMERCE
Being able to monitor and increase the average order value (AOV) is a very important activity for you as an e-commerce owner: the AOV is the average amount that a customer spends in one purchase from your online shop and it is a fundamental indicator to plan and improve your online presence.
What is the AOV and why you should aim at increasing it
The AOV is the average amount that your customers spend every time they place an order. In general, it is easier to increase the amount spent by a current customer, than increasing revenues by acquiring new customers, because current customers already know and trust your brand. Understanding how much your average customer buys and what motivates people to add more items to their shopping carts can help you drive up your average order value (AOV) and increase your revenue.
How can you increase your AOV?
We have built a simple and effective list of 5 tips to help you grow your average order value. Read further to explore each of these actions.
1. Offer free shipping subject to a minimum amount spent
Offering free shipping is probably one of the most effective marketing strategies out there: studies show that ‘9 out of 10 customers are more likely to shop at a site online if they’re promised free shipping’. Customers will most probably add more items to their cart as the shipping will be free by reaching a certain threshold.
2. Offer volume discounts
Getting a lower price for more products bought is another powerful technique. Think for instance of ‘2 items at the price of 1’, or ‘get 3 items and the cheapest one is at 1 euro only’, or a 10% discount when buying 3 pieces of the same product. This way you can increase the order from 1 to 3 items and your AOV consequently.
3. Offer bundle of complementary products
Instead of selling single items, offer bundle deals with complementary products. Try to combine more items that add more value to each other when used together, e.g. beach towel with sun cream, flip flops and beach bag. Selling products as a bundle will help you increase conversions and sell more items to the same customer. Creating product bundles will increase your AOV, while improving your customers overall shopping experience.
4. Cross-sell and up-sell items at checkout page
Another way to increase your AOV is inviting the customer – when they are the checkout page – to buy an additional item on top of the one that’s already in their cart. To make this even more effective, you could offer a special limited time discount (such as 2 minutes) to create a sense of urgency and make them immediately convinced to buy the extra item.
5. Offer safe payment methods with no amount limits
A safe payment solution with no amount limit will definitely facilitate AOV increase. Customers want pay in the most seamless way and without interruptions during the payment process and even a plafond issue may interrupt the sales in some cases and cause cart abandonment. Therefore using a frictionless and no-plafond limit solution, such as MyBank, allows customers to pay directly from the online banking without any amount limits and with immediate confirmation of the transactions.
Increasing your AOV will make your online business healthier and will improve the shopping experience of your customers. It is usually easier to increase the amount spent by a current customer, than acquiring new customers. There are some simple actions you can take to increase your average order value, by encouraging your current customers to buy more items with bundle discounts, cross-selling and up-selling and offering safe payment method without any amount limits, such as MyBank.
3 May 2019