If you are a business owner, generating more revenue is likely at the top of your priority list. One way of doing this is to focus on increasing the Average Order Value, or AOV.
What is AOV?
In simple terms, AOV is the sum of revenue generated divided by the number of orders taken. That equals the Average Order Value.
If, for example, you have generated $100,000 in revenue and received 2000 orders, your AOV is $50.00. If you focused on increasing your AOV to $75.00, this would provide $150,000 in revenue.
To increase the AOV in your online store, you may consider some of the following suggestions.
7 Strategies for Increasing Your Average Order Value
Free Shipping
Encourage customers to purchase more from you by requiring a minimum purchase amount to receive free shipping.
Example: Free Ground Shipping for orders over $75.00!
Product Bundling / Upselling
Instead of selling individual items, create product bundles that allow customers to buy products in a set, or group complementary items in a bundle. Customers will respond more to bundles that save them money.
Example: Buy Shampoo plus Conditioner, Save 25%
Shopping Rewards
Nothing makes customers return to a site to order like shopping rewards! Why not reward your customers for making purchases in your store? Rewards can be offered for orders that meet a minimum ordering requirement, or for orders received over time.
Example: Spend $75.00 and earn $10.00 toward your next purchase.
Coupons / Discount
Entice customers to spend more by offering a Coupon or Discount when they meet a minimum ordering requirement.
Example: Save 10% off your order when you spend $100.00 or more.
Volume Pricing
If you offer the ability to sell in bulk, adjust the unit price when the customer orders in quantities.
Example: Buy 1 Widget – $5.00 each, Buy 2 – 19 Widgets – $4.00 each, Buy 20 or more Widgets – $3.00 each
Give Back
Support your community or organization with an offer to give when customers make a minimum purchase in your store.
Example: Spend a minimum of $75.00 in our store and we will donate 5% of your purchase amount to fight hunger!
Suggestive Selling
Let your customers know about other items in your store with these simple suggestive selling techniques that SmartCart can help you deploy.
Related Items – Provide options for Related Items in the Inventory Controls to inform customers of products they may be interested in that relate to the item they are viewing and/or ordering.
Customers that purchased this item also purchased – SmartCart can automatically display a list of products to the customer based on previous orders. See Product Recommendations in SmartCart control panel to activate this feature.
Every business website has distinctive needs. SmartCart can help you establish an online presence that proclaims your business identity. With a free website consultation from SmartCart, we will personally review your website and provide suggestions that help you engage customers and sell more.
