Today, we talk about how to instantly increase average order value. But first, let’s take a look at an example.
Imagine you have a customer browsing your online store and he’s ready to buy, what will you do? You can let him be, he’ll just grab what he needs and leave.
Or, you can take action RIGHT NOW to excite him to stay and spend more!
Obviously, you must have known how hard it is to find and convert a visitor into a customer. Thus, by encouraging them to buy more, you can raise your profit without finding and converting new people again and over again!
This is what so-called to increase average order value. And to exploit it, we have researched 10 highly-effective ways to do that which you could easily set up and apply on your store at once.
To make your life easier, we created this table of contents so you can jump into any tactic you want.
- Create order minimums for an offer
- Set up a game or contest
- Offer discounts in bundles
- Set up time-sensitive deals
- Personalized product recommendations
- Display browsing history
- Upsell your products
- Use cross-selling offer to increase average order value
- Display cost savings
- Run a loyalty program
Let’s get it on!
1. Create order minimums for a special deal
The first approach is to encourage customers to raise the order value at a specific amount for an extra benefit. For instance, you offer a 25% discount for all orders above $200. Customers with orders below that amount will tend to add more items.
Customers want to meet the threshold and get a discount. Special offers like this make customers feel they earned a great benefit. This could speed up the checkout decision and improve your conversion rate. In general, this is a simple yet effective way to increase average order value.
However, since it’s involving an offer, you must consider the minimum order threshold to balance your revenue. According to Aaron Zakowski, 30% rise compared to your current average order value is an optimized threshold. If your average order value is $100, then you should make the order minimum at $130.
Besides, about the discount you give to the customers, you can use some offer types here:
- Free shipping.
- Cart discount.
- Free gift, extra product, gift card.
- Premium service.
- Loyalty points/rewards.
For example, Pura Vida sets up the threshold at $35 for free shipping. To get people to notice the offer, they display a top bar with this message:
If you’re in need of a tool to create a bar, like this, you can work with SiteKit. This tool allows you to create any kind of top bar and customize it the way you want. Regardless of discount promotion, announcement or free gift, you can do them all with SiteKit.
2. Set up a game or contest
Winning a game is satisfying. How about using this tactic to increase average order value?
You can set up a game or contest for your users to join and the winners will get amazing rewards. However, you may need to add set some conditions to enter the game.
In general, the condition is spending over XXX amount of money or making a purchase on your store. This is apparently like the first tactic that “create a minimum threshold” to encourage higher cart value.
Nonetheless, instead of offering a discount, you offer them a chance to WIN!
If they want to win, they’d better start buying more. Therefore, your average order value will rise.
Let’s look at an example from Satori Laser, a laser hair removal service in New York. They ran this sweepstake for a while.
This sweepstake was available for everyone who shopped on Satori Laser, and the winner will be picked via random roll every 2 weeks. People must purchase something on Satori first to get a chance to win.
In overall, this enhances many aspects of their store.
First, it increases order value and reduces cart abandonment, obviously. Second, it raises the customer experience for people while shopping on Satori. And lastly, it strengthens the customer-business bond and forges a loyalty in customer’s shopping behavior.
For such sweepstake, you might need an app to help you with it. For instance, ViralSweep is a very popular app on the Shopify app store to create games, contests, and sweepstakes.
3. Offer discounts in bundles
This method can not only significantly increase average order value, but also improve the customer’s experience. In short, you will give away free items to customers when they shop at your store.
This is called “Buy 1 get 1” or BOGO. However, you can tweak it to “Buy 2 get 1” or “Buy 1 get 2”. Just change it the way you like.
For instance, Chewy is offering “Buy 1 get 1” deal on all American Journey products.
Note that we sell for profit, so you should consider setting the price to cover the cost of the free items. As customers will get extra items for free, they feel satisfied with the deal, and they will probably purchase promptly.
Generally, this method is easy to execute. You can manage the free items yourself, or you can use an app to do your work. Boost Sales is an ideal app letting you run BOGO deals like this.
4. Set up time-sensitive deals
As you may know, time-sensitive deals can trigger a feeling called “Fear of missing out” on your customers.
They fear to lose some satisfying events or beneficial deals, so they have to act at once or never. Thus, time-sensitive deals can speed up decision making and encourage customers to buy. This is the key to increase average order value on your store.
Commonly, there are two ways to create time-sensitive deals:
The first way is using a timer countdown to express the pressure of time. In fact, it must rely on a beneficial offer to start the countdown.
For example, you can set up an introductory price for your newly-released item, or a seasonal sale-off. Afterward, display a timer countdown on the home page and product page.
Besides, the stock countdown is also useful. In the product page, you can display a small progress bar counting down the number of products left.
If the customers see their favorite products is running low, they’ll probably feel encouraged to buy and secure the products for themselves.
If you are looking for a solution for this method, you can try out Boost Convert. This app lets you create and customize both of the countdowns in your favor. No matter timer countdown or stock countdown, this app will deliver them just the way you like.
5. Personalized product recommendations
The personalized recommendation is one of the best tactics to greatly increase average order value. Just so you know, Amazon has 35% of their sales made from their recommendations.
The reason for this success is the customers’ understanding. While the customers are browsing your shop, if you show them the items they like, they will probably pay attention and have a stronger intention to buy.
Because sometimes customers don’t know exactly what they want to purchase, feeding them appropriate choices along with curiosity triggers will surely make a hit. Moreover, this will help customers save a lot of time wandering or getting lost in your shop.
Here is an example from Alacrity:
As you can see, the store displays related/similar items to the main products correctly. This is a very good way to increase customers’ experience, so you can apply this to your store.
However, the issue lies in how can you find the proper items to recommend to users? We knew that it must be based on users’ demographics, but you can’t do it manually for each product you have.
Don’t worry, you can use some apps to achieve this hands-free. For instance, Personalized Recommendation could give you get the job well-done. Simply install the app and it may generate the offers automatically to display them on your store.
6. Display browsing history
This is another way that simply tweaks your store but can increase average order value greatly.
People browse what they have interest/consideration in but the attraction isn’t good enough to convert, causing people to leave. However, if your store displays their browsing history, that will remind them of the consideration.
In fact, repetitive displaying those items should gradually strengthen the will to buy. Thus, you can not only reduce cart abandonment but also increase average order value at the same time.
The execution is easy, you can use some app for eCommerce to display recently viewed items on your storefront. This usually comes along with personalized recommendations to amplify the efficiency.
Just like Walmart, they combined both of that seamlessly:
For those who don’t know how to enable the browsing history on your store, Personalized Recommendation can help.
After installation, this app allows you to customize and display “Recently viewed & featured recommendations” section. By doing so, whenever a returned customer visits your shop, they will see their browsing history on your store.
In addition, it comes along with featured products that automated picked just for them. Anyway, you are free to customize the appearance and placement of this browsing history widget.
7. Upsell your products
You must have found this sound familiar, right?. In case you don’t know, upselling is encouraging customers to purchase higher tiers or upgraded versions of the targeted products with extra charges.
Particularly, psychology is the real trigger here. The comparison between the huge upgraded value versus the small added cost can make customers feel they have found a great benefit!
As a result, upselling generally excites users to feel satisfied with the deal. Hence, it can both increase the cart value and improve the customer’s experience.
For example, ProFlowers is a good example of upselling. Let’s take a look at their product page:
They offer vase upgrades, so customers can select a replacement for the original blank vase. In fact, upgrades mean extra charges. This is the most common upselling model in eCommerce.
Also, it’s easy to implement in your store either. Try Boost Upsell to create product upgrades right next to the “Add To Cart” button. You can even customize the products, bundles, pricing, and discounts for the upgrades.
On the other hand, if you are selling subscriptions, service plans with multiple pricing tiers, try making a pricing table like NordVPN did:
Particularly, this is the art of pricing to encourage customers to choose the higher plan. In detail, they make the price gap between tiers absolutely minor compared to the value of each plan.
As you can see, the 1-year and 2-year plan costs $83.88 and $95.75 respectively, while the 3-year plan costs only $107.55. The plan lasts 3X longer but only costs 23% higher.
In the customer’s perspective, this is an absolute win!
8. Use cross-selling offer to increase average order value
Like upselling, cross-selling is another way to increase average order value. However, cross-selling will try to sell other relevant items to the main product, not the upgraded version.
For instance, this is a cross-selling bundle from IpsyEyes. The package includes 3 Fleetguard Cummins right under the Add to Cart button. This plays as a suggestion to urge customers to buy more on their store.
What IpsyEyes did is researching the nature of each item to find the proper related products. After that, they group up items that customers usually buy together and create a cross-selling offer for them. Lastly, the store displays it on the product page that customers are watching.
To create cross-selling offers, Boost Sales is the go-to choice for the work.
Based on what you learned about your customers, you can use this app to create cross-selling offers and display them on your product pages. On the other hand, the app itself can generate offers automatically based on the Smart Cross-selling feature.
9. Display cost savings
This is a minor upgrade to increase average order value. Though it’s just a small detail, it’s a game changer to improve customer’s experience.
When adding items to cart, customers might realize cart value was adding up too high that could scare them away. However, the cost savings can wipe away this fear and let customers proceed to checkout.
The saving amount clearly represents the benefits customer would have if they make the purchase.
Whereas, benefits equal satisfaction. Thus, a better experience.
For example, Steam fully shows the total price, discount percentage and saved amount in their game bundles.
Moreover, the saved amount is usually displayed in green color, bold or enlarged to emphasize its value. You can do whatever you like to highlight it, but remember not too aggressive.
In addition, this method can combine with a cross-selling bundle to amplify the effect. This will definitely increase average order value for a substantial amount.
10. Run a loyalty program
Loyalty programs seem to be a common part of many large eCommerce businesses. It offers multiple benefits to the customers based on how much they spend on your store.
Particularly, most loyalty programs use the point system to track progress and deliver rewards. The more they spend, the more benefit they get.
According to Smile.io, the majority of brands see at least a 13.71% increase in order values from rewards program members. Also, the loyalty program forges a bond between the company and customers. Because of the point system, users tend to return and purchase again so that they can spend the points or earn more points. This significantly increases the customer’s experience and loyalty.
Sephora is a great example of successful loyalty programs. They set up 3 tiers of membership with various benefits related to Sephora’s services. The member’s tier is defined by their spend per the calendar year: Free, $350 and $1000.
For a loyalty program, the first things you need to do are defining the tiers and the requirements for each tier. After that, build a clear, motivated growing method for customers to reach higher tiers and research your reward lists based on crucial benefits which may attract your customers.
Furthermore, you should display a table which users can clearly learn about your program and compare between tiers. Also, FAQs, terms, and policies for your loyalty program are needed either.
So here they are, the 10 ultimate ways to increase average order value. Each tactic tries to leverage the shopping behavior to urge customers to buy more. With these, you don’t have to lead more visitors to your site while still making tremendous revenue.
Since they’re involving psychology, the tactics also have positive impacts on customer experience, making customers satisfied as well. One effort, double the benefit.
Especially, you can see they are not so hard to implement. With a little help from the right apps, you can set them up on your shop effortlessly and start doing it now!
If you are rocking your AOV with awesome ideas, share them with us in the comments below! 👇👇👇
Can’t wait to hear your stories!