10 Ways To Increase Average Order Value (AOV)

May 21

When looking for ways to increase revenue, companies often prioritise the acquisition of new customers, which can mean more marketing spending. However, one solution that is often overlooked is to increase the average order value (AOV), meaning that each individual customer becomes more valuable. With cost per acquisition having risen due to heavily populated ads marketing in 2020, this strategy is one that no business should ignore. Here are 10 simple steps to increase AOV:

1) Upsell / Cross-sell

Cross-selling is a great way of persuading customers to purchase more items by showing relevant products that complement their purchase. For example, if someone was looking to purchase a skirt you could show them a matching top, increasing the likelihood that they would purchase both.

Upselling is a similar approach, but instead of offering a complimentary product, you push the buyer to purchase more valuable products. For example, if someone was looking to purchase a meal you might suggest they upgrade to a large which has a higher profit margin.

2) Minimum spend for free shipping

Adding a minimum spend threshold can be a great incentive for customers to spend that little bit more in order to get access to free shipping. This can be pushed at the checkout by highlighting how much more a customer needs to add to their basket in order to reach the minimum spend.

The best way to do this is to calculate current average order values and increase them by a percentage. The amount must still be attainable to customers so they don’t abandon the cart; but also significant enough to noticeably increase AOV.

3) Bundles

Grouping similar or complimenting products together in a bundle may persuade customers to purchase more products than they would if viewing them individually. Offering a small discount on the bundles is an added incentive for trying more of your products, increasing the likelihood of them becoming returning customers.

4) Discounts

Providing discounts such as ‘2 for 1’ or ‘3 for £10’ is a good way of persuading consumers to purchase in higher quantities, increasing their basket value. When doing this it is important to calculate the value of each offer to ensure that you are still making a profit.

5) Gift cards

Gift cards are an excellent way to encourage repeat purchases by offering an incentive such as ‘£5 off your next purchase if you spend £30’. This not only encourages the customer to increase their order value in order to reach the spend threshold to receive the offer but also encourages them to keep on returning, increasing their overall lifetime value too.

6) First-time buyer discount

When consumers are visiting your website for the first time, offering an incentive can encourage them to convert. It is also a good way to capture information like email addresses in order to remarket to them at a later date, as pre-existing customers are cheaper to reach through marketing than new consumers. If you overlap the welcome incentive with other strategies such as reaching spend limits, you can not only encourage conversion but also the largest basket sizes.

7) Time-sensitive offers

Time-sensitive offers like flash sales not only push consumers to convert but also to purchase more in order to make the most out of the limited time offer. They can be a great option during periods where purchases drop off as they force customers to convert with a reduced consideration time.

8) Loyalty schemes

Loyalty schemes encourage customers to come back time and again. Offering things like point systems and exclusive discounts may encourage customers to add more items to their carts. Beyond the one-time order value, these schemes also create brand loyalty, increasing a customer’s lifetime value.

9) Competitions 

Creating a competition can be an effective way to convince customers to buy more regularly or spend more. For example, if you offer a ‘golden ticket’ prize, customers may make more purchases in order to be in with more of a chance of winning the prize. You could also run a ‘bingo’ with customers getting more tickets for the amount they spend, again encouraging higher order values.

10) Show savings at checkout

Finally, in order to prevent abandoned carts, draw attention to the savings that the customer is receiving. By reminding the customer of the value they are gaining from adding more to their baskets you can avoid cart alterations or abandonment and ensure that your strategies result in conversions.

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