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12 Ways Average Order Values Can Increase Your Productivity

Increasing your average order values (AOV) will improve your work-life balance and isn’t that what we all would like to achieve.

Yes, working less and making more money while we’re at it. Improving your AOV is, nothing other than finding new tactics to get your clients spending more money with each purchase they make.

So here’s my top 12

  1. Free shipping
    Yes, free shipping will cost you some money, but if you’re smart, you’ll set a threshold. Let’s say you sell towels, and the average order value (AOV) is $20. By setting the free shipping threshold to $35, chances are some of these clients will be triggered to spend an extra $15 to make the free shipping threshold.
    I’ve seen AOV rise 40% just because a threshold tactic was correctly implemented.
  2. Offer discounts on selected products
    While many retailers hate the word “discount” you should always offer discount products. Remember, what’s a discount to the visitor doesn’t mean it’s a discount to you. If you strike an agreement with your reseller to get rid of last years stock, it’s still discounted because it’s final years stock. Make sure to mention this to your visitors. You’ll be educating them why certain products are discounted. I always advise discounts should be thought out as a strategy. Don’t just go and discount random stuff. Visitors could lose trust and leave your store.
  3. Sell bundled products
    Let’s go back to the towels. If a visitor has found a towel they like with a specific design, you could improve your average order value by adding different sizes and even a bathrobe. Let’s say the towel costs $15, the set (3 towels and the bathrobe) for $75 could be a deal a bunch of visitors would take. Oh, and don’t forget they also get that free shipping because the threshold is $30. Can you imagine how bundles could boost your business overnight?
    Just imagine what would happen if 30% of your customers would take these deals. You’d be generating so much additional revenue you can finally take some time off work and hit the beach.
  4. Gift cards
    Let’s say you offer a $10 discount to the customer who just bought the bathrobe towel set for $75. If they spend $200 within 30 days, they get a $20 discount. Gift cards also are very effective for customers searching for a present.
  5. First time customers
    Your job is to move visitors into customers. This isn’t very easy to do because unless you’re an A-brand people won’t trust you. They may have found you by Google-ing a product you have that no-one else has (Longtail products), but this doesn’t mean they’ll purchase. So what you want to do it build trust. You should do this by having a live customer service chat available, believable testimonials, some other forms of social proof you’re kosher.
    Last but not least, a tactic could be offering free delivery or a discount for first-time customers. These examples will certainly help some of your visitors to consider making that purchase. Some will still leave no matter what you do. You can’t and won’t win em all.
  6. Cross selling
    Cross-selling items is a relatively easy way to help the customer buy additional products. Remember the example of the client buying the towels?
    Showing a matching bathrobe is a form of cross-selling. It’s related to the towels because in this example it has the sesame design. It makes perfect sense to show other similar items which somehow are linked to the product the visitor is looking at.
  7. Upselling
    Let’s take Apple Watch as an example. So you go to the store and select the Apple Watch. You select the smaller screen version. It makes perfect sense to increase your AOV to promote the larger screen watch, which costs $100 more. You could also sell a pack of selected wrist bands. Anything to do with helping the client select the more expensive version is what Upselling is all about. Play the game smart, and you will make a bunch of extra revenue and you AOV will skyrocket.
  8. Time
    People don’t like to miss out on a fantastic deal. So, what’s stopping you from adding a new page to your site with time-limited deals. Products you probably want to get rid off quickly are perfect. You could also promote special day like black Friday where you discount deals for 24 hours only. Please make sure the deals you’re offering are top-notch. If you mess this one up, you’ve lost a client forever.
  9. Special club for high rollers
    Nespresso has granted me the ambassador status, which means I get specials first, free shipping and many other extra’s. If you’d create a special club for top 10% clients, this will do magic for business. You can send them newsletters with special deals, product introductions, exclusive deals.
  10. Donate
    Yes, some people rather spend a few bucks more at your store knowing you donate a fraction of your revenue to charity. This may seem a little commercial, but supporting a local charity can do wonders for your average order value. Make sure the foundation is neutral. You don’t want to piss people off by supporting an organisation people won’t want to support. I can name a few here, but you know what I mean. Something to do with animals always works well.
  11. Social Media
    Create a special landing page for people finding your store via social media such as facebook. In return for a like or share, you can offer them something in return. This could be free delivery, a 5$ gift card or whatever your audience would find rewarding.
  12. Coupons
    Yes, coupons are still super hot. However, most coupons are rubbish. They offer an x amount of discount, and they are timeless. If you want a coupon to work, they should be time-limited, and always the discount should be higher than your average order value. Let’s explain:
    Let’s say your average order value is $20. If you create a coupon for a product below the AOV, your AOV will decline (unless you have a great upsell).
    So what you want to do is to create coupons only for products which will improve your AOV. So, promote products which will generate $25 of revenue.

There you have it

12 easy to implement ideas and tactics you could implement right away. Please don’t implement all of them tomorrow otherwise tracking which tactic works best for you, will become pretty cumbersome.

If you have tactics that work, please share with us by adding a comment. You’ll be helping a good cause.

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