How to Increase the Average Order Value in your Online Store
So your online store has lots of customers — great! Lots of customers mean lots of potential for sky-high sales numbers. But how do you get those customers to purchase more than just one or two items at a time? Or how can you coax them into trying out your more expensive products? There are plenty of strategies out there for up-selling, cross-selling, and growing your business through personalization, so let’s take a look at some of the ways you can get that average order value (AOV) trending upward.
“You May Also Like…”
Suggesting similar (or complementary) products to your customers while they’re shopping is an essential practice for any online retailer. If a customer has a pair of shoes in his cart, go ahead and suggest a great pair of socks to go with them. If one of your customers is checking out a hammer, maybe she needs some work gloves (or some nails!) to complete that construction project the right way. Tagging related items to your project pages will really help you get up-sell and cross-sell activity in droves.
Bundling, or offering a pair/group of items together at a discounted price, is a great way to get your AOV numbers looking healthy. Video-game bundles are a good example of how to make use of the strategy; to make sure gamers buy their consoles, controllers, and games all in the same place, sellers will bundle all of these items together at a discounted price, which also encourages shoppers to pick up an extra controller or extra game that they may not have purchased otherwise.
Don’t be afraid to have fun and get creative — or even a little unconventional — when brainstorming bundles your customers will love. Organize your bundles around matching colors or common themes to get customers to branch out into different product categories they could have previously been unfamiliar with.
Make it Rewarding
A quality customer rewards program can really spur your customers to spend more money per trip. A system that, for example, gives your customers $10 in rewards credit for every $100 they spend, will naturally motivate shoppers to spend more. “Spending money to save money” is a very real psychological phenomenon, and it can be mutually beneficial for you and your customers. Even small perks like free shipping (or rush shipping at no extra charge) can make a big difference in building your customers’ loyalty to your store and getting them to buy more.
Make it Personal
Online stores that pay close attention to customers’ browsing history and search history to recommend products do a great job increasing their AOV numbers. Customers are more likely to respond to special offers if they receive the offers as a result of personalization instead of the mere luck of the draw. Even something as simple as including your customer’s name on login screens and in emails can add a personal touch while they shop, a sales tactic that shouldn’t be overlooked.
Strong personalized recommendations can be achieved by looking at a customer’s order history, search history, geographic location, or even by considering the purchases and behaviors of similar customers. Many customers do not realize they want or need something until it is suggested to them, so you should work especially hard to ensure that your shoppers are exposed to quality recommendations that convince them to buy.
Make Returns Easy
This one sounds a little counterintuitive, doesn’t it? You might think that easy returns lead to more lost revenue, and therefore lower AOV. But the reality is more complex. A common complaint among online shoppers is that complicated, drawn-out, and expensive return processes discourage them from following through on their purchases. A straightforward, lenient return policy actually benefits online stores because customers have less trepidation about clicking that “Place Order” button.
So, what does the ideal return policy look like? That can vary depending on what industry you’re in, so it’s a good idea to research your competitors’ policies. Once you have the information you need, try to craft a return policy that’s at least equally generous, if not more generous, than your competitors’ policies. This will supercharge your AOV and make customers more eager to shop with you because they’ll know they can correct their mistakes if the items they’ve chosen just aren’t quite right.
We hope these tips have you feeling more confident as you continue to up-sell, cross-sell, and make recommendations to your customers. For more guidance on increasing your AOV and building your eCommerce store, visit us at Wagento.com.
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