When you’ve got online traffic & high conversions but low revenue, you need a new plan to earn more. Amassing more customers could help, but you’re missing out if you’re not selling more to the customers you already have.
Increasing your average order value (AOV) effectively grows your business & keeps your customers happy. Here’s how to do it & see your profits soar.
1) Showcase Trending Products
In-demand, trending products sell well & position your business for bigger order sizes. Of course, dropping a bundle on sourcing tons of trending products is laborious & time-consuming. You could miss the boat before you see momentum in your sales figures.
To tap into current trends:
- Turn to the power of POD.
- Experiment with your favorite designs & ideas & upload them to you
- CustomCat library.
- Apply to our hundred products, from T-Shirts to mugs & houseware, to give customers what they want.
- You can even personalize your orders with the help of a CustomCat & Customily integration.
Fortunately, POD keeps up with ever-changing trends. With no minimum orders or inventory to carry, you can remove & add designs whenever you want.
Not sure how to come up with trend-setting produce ideas? Read more: Crush Your Competition With Trending Products in Your POD Store.
2) Create a Time-Sensitive Offer
Move more products with time-sensitive offers that prompt shoppers to “Buy Now.” Creating a sense of urgency is irresistible to shoppers, whether it’s a flash sale or an exclusive product.
Despite the offer being time-sensitive, your marketing needs more lead time. You need an eager audience to open your marketing emails right away or enough followers to engage with your social media posts. Make sure to give yourself plenty of time to strategize the offer & entice your audience to come & buy.
Time-sensitive offers also pair well with an abandoned shopping cart strategy. When a potential customer leaves before buying, an app like “PushOwl Recover Abandoned Cart” can prompt them to come back to finish up shopping. An urgent reminder that the promo is about to end or a “You can still grab this offer if you check out now!” could also help save the sale & increase your business’s profit.
3) Segment Your Marketing Lists
If you’re juggling lots of ideas to amplify your average order value, you need to make sure the right customers find your offers. Segment your marketing lists to identify which customers want those last-minute deals or specific products.
Here are just a few ways you can segment your lists:
- Father’s Day shoppers – They’re more likely to buy from you again on Father’s Day or take advantage of any like-minded promos on hats or polo shirts.
- Beach lovers – Customers who keep buying your custom flip-flops & beach-friendly coolers are the most likely to dive into relevant product bundles.
- Holiday shoppers – You can customize our ornaments for any occasion, from obscure holidays to the traditional winter season.
- Sales crazy customers – Identify which portion of your marketing list is the most motivated to take advantage of sales.
Once you identify how to segment your marketing lists, make sure to personalize your outreach accordingly. Research shows that 71% of consumers expect companies to deliver personalized interactions, & 76% get frustrated when it doesn’t happen.
4) Set a Shipping Threshold
Offering free shipping keeps your e-commerce business competitive with the big players & increases your average order size at the same time. The strategy entices customers to add an extra item or two to trigger free shipping, prompting them to spend a little more.
Make sure you set your shipping threshold to about 30% above a product’s sale price. For example, if you sell a jacket for $35, your free shipping threshold should be around $45. Customers are more willing to spend an extra $10 to get free shipping than spend $8 on shipping for their single item.
5) Check Your Sales History & Analytics
Instead of guessing if your customers will jump on your offers, check your sales history & analytics instead. You may discover your hair accessories were slow movers, but hoodies & sweats flew out the door.
Once you identify your best-selling products, you can focus on highlighting them in your store to encourage more sales. Or you can take the opposite approach & try cross-selling best-sellers with sluggish sellers to drive more revenue in your business.
Your sales history & analytics also offer clues as to which promos & holiday sales were your highest performers. Focusing on what’s already working & taking steps to ramp up your results can immediately improve your sales.
6) Offer Live Chat Functionality
You don’t have to launch a single promo or sale to increase your average order value. Instead, you can add a live chat feature on your online store to improve sales. Research shows that adding live chat typically leads to a 20% increase in conversion rates.
Answering user questions & offering suggestions are a few places to start. Or you can turn to an app like Tidio that combines live chat with chatbots to answer some of your customers’ most common questions automatically.
The results? You build a strong customer service foundation while resolving obstacles to buy more.
What’s your favorite way to increase your average order value? Let us know by leaving a comment below!
6 Ways to Increase Your Average Order Value