What do you need to do to Boost Average order value for your eCommerce business?

Your business seems to be doing well but something is not quite right. Your sales are doing well too but the Average amount for your orders remains the same. In fact you notice that your sales have plateaued out after some initial surges. This means you need to increase your AOV.

AOV or Average Order value is calculated by dividing Total Revenue/Total number of orders. eCommerce stores that manage to Boost average order value do better business as compared to stores that have greater traffic but a lower AOV. Boosting AOV is a much more cost-effective way to increase revenue as compared to investing in increasing traffic. With search engines constantly changing their algorithms, an increase in traffic doesn’t necessarily guarantee sales anymore. It is a better strategy to boost average order value instead.

Top 5 ways to boost average order value

Recommend products to your customers:

Recommend products that are related to the product that your customers are buying now. You can use this strategy to dramatically increase AOV for your eCommerce store.

Suggest products that complement each other to your customers when they shop. You can also feature products that the customer will need in the future. For instance, if a customer is buying a laptop, product recommendations will immediately feature products like laptops, headphones and other computer accessories.

Make things interesting for your customers by offering discounts for bundling of related products. Offering up such bundled up products can lead to a decrease in the number of orders but will give a boost to your AOV as customers will end up buying more. The best part about following this strategy is that it almost costs nothing.

Provide the right kind of incentives for your customers:

Offer coupons to your loyal customers. This is a great way to build loyalty among your customers. Without any investment whatsoever you can easily offer coupons to customers for a lot of different things. There are a lot of stores that offer a discount on the next purchase to a first time customer. This strategy usually works well to get you repeat customers.

You can also offer free deliveries for customers who exceed a certain amount. This is a common strategy that a lot of eCommerce stores have used to boost average order value. Some eCommerce stores also have special schemes for customers enabling them get faster deliveries. Most stores who use this strategy sometimes charge a certain amount for this faster service. Deliveries are not easy to handle for eCommerce stores so this strategy should only be followed after some careful considerations.

Loyalty rewards and memberships:

Offer special discounts and rewards in the form of shopping points to your repeat customers. Customers who give reviews and of course buy multiple times from your stores are the ones you need to focus on. Surprise a loyal customer by giving them freebies once a year. Give them something to look forward to. Many eCommerce stores let customers earn points that they can use later for shopping. This scheme has worked remarkably well for most companies as it can increase sales easily and quickly.

You will see a clear increase in sales numbers if you can offer up rewards and points for your loyal customers. Customers often go after prizes and rewards by shopping more on websites that offer rewards and points. It is also a great way to keep your numbers on an upscale.

Display reviews and User Generated Content:

Display reviews on your store for your products as much as possible. Getting reviewed regularly can increase your sales numbers significantly. You can easily use customer review management software like aveJana to manage your reviews and put them all in one place.

Customers who aren’t able to make up their mind on a purchase usually turn to reviews for help. Displaying relevant reviews on your eCommerce store will help you boost average order value for your business and also convert more. A company that follows up on all reviews, negative and positive, easily earns the trust of its customers.

As a brand you should take your User Generated content very seriously. Customers today trust UGC more than content from the brand. If you can harness the power of user-generated content then you can easily boost average order value for your company.

Boost average order value on social media:

This one is a no-brainer for any eCommerce store. Various social media platforms now allow you to sell from your marketing pages directly. Social media is an easy way to broaden your customer reach. It is also a great place to interact with your customers and keep them interested. Share your best customer reviews on Social media to attract new customers.

Diversifying your presence on social media can easily boost your average order value. This trend is only going to grow stronger and stronger in the near future as more customers shop online. Playing your cards right on social media can dramatically increase AOV. Follow intelligent customer engagement strategy to keep them interested. Empathize with your customers and get them to empathize with you via social media. The possibilities are limitless.

Conclusion:

If you are able to boost average order value, your company will last the tests of time and markets. You can easily carry out most of the strategies above using plugins and by making minor changes. Increasing your average order value does not need you to spend a lot of money or time. Picking out the right kind of strategy however may not be a walk in the part. You will have to test and see which ones work best for you and your customers.  It is  not easy to boost average order value consistently but hey, if it was so easy, everyone would be doing it.

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