Leave them wanting more: The ultimate guide to increasing your average order value.
Posted on April 3, 2019
As Google’s algorithm continue to change, impacting your traffic acquisition through unpredictable search rankings and a potential increase in PPC costs. The easiest way to see a rise in revenue, as an ecommerce business, is to increase each customers total spend and make the most of the qualified traffic already landing on your site.
This has proven to be an effective method for improving ROI opposed to spending more of your budget bringing in new traffic. It’s valuable to put a focus on quality of your traffic rather than the quantity. We’ve put together some top tips to help you up your average order value (AOV).
Frequently bought together…
Product placement and a good online merchandising strategy is key to upping order values on your site. Placing products with items that they correspond with, is a tactical yet simple place to start, subtly reminding consumers of products they might also need. Product suggestions have proven to be most effective when presented on specific product pages and at the checkout page with simple text accompaniments, for example ‘Customers who bought this item also purchased.’ Statements like this will also enforce the theory of social proof – the phenomenon in which people are likely to copy the actions of others, nudging them even closer to those extra purchases. Offering this feature will also be seen as a sign of great customer service, showing you have the user’s best interests at heart, at the same time still encouraging them to increase their total bill.
Likewise, another beneficial technique for increasing your AOV is to include a browsing history visible to consumers whilst they are perusing your site. This will ensure that you are not letting them forget anything before checking out. This option is especially useful for shoppers as it allows them to virtually carry their shopping around with them before making a final decision on the products they’re buying.
Incentivise your upsell
Incentives and rewards are an effective and beneficial way to increase AOV, giving consumers a reason to spend more money on your site. Introducing simple offers such as ‘free next day delivery when you spend over £100’ is a great way to push your customers into spending more with them still seeing a benefit. However, figuring out the profit to be made on this offer is essential and will not necessarily work for everyone once you factor in your shipping costs. Introducing minimum order discounts to your site and displaying banners advertising of your offers will encourage your consumers’ motivation to spend. Pair this with email and social campaigns to reinforce its importance and you are on your way to success.
An alternative approach to this idea of creating mutually beneficial incentives to up AOV is through utilising your consumers fear of missing out. Online consumers often procrastinate and delay their buying decisions, sometimes they just need that extra push to make a sale. Launching time-sensitive offers will create a sense of urgency amongst your shoppers and encourage them fill their baskets and finish the sale. Display a timer counting down to the offers completion and the panic buying will be well on its way.
Help your sales, Don’t hurt them…
So, with all this in mind it’s important to find a balance when upselling and trying to increase your AOV. Harassing your customers with an offer on every page is more likely to hurt your sales than help them. When recommending products and offering incentives, it’s crucial to keep focus on adding value to your customers sale and improving their overall shopping experience.
Kelkoo Group has 20 years’ experience in ecommerce, digital advertising and consumer analytics. We can support your entire campaign, from set up through to tracking sales and conversion data to help you get the results your online store needs to succeed. Why not get in touch to find out more about how our product portfolio can drive quality traffic to your online store.