So, you have an eCommerce store that’s doing great. You’ve got good traffic coming in, and an impressive conversion rate that you’re truly happy with. But, after some time your growth starts to stagnate.
As a marketer, you consider trying different ways to increase your website visibility to get more visitors. While this sounds like a good plan, the downside of it is that it can be a time-consuming and costly idea.
A better and cost-effective way to make things work faster is to focus on convincing your existing customers to buy more from your website. For that, you need to know your Average Order Value (AOV).
Average Order Value is the average amount of money each customer spends on your website per transaction. You can simply calculate this number by dividing your total revenue by the total number of orders you receive in a month.
Increasing the AOV is a smart marketing strategy for quickly boosting your sales and increasing your revenue. But more often than not this strategy is overlooked by marketers without considering its advantages.
Here are 5 easy ways that can help you increase your average order value without reaching out to new customers or investing a lot of money.
Offer Bulk Order Discounts
A very smart way to encourage existing customers to buy more from your website is to offer bulk order discounts. This means if your customers purchase a certain number of products together they can get a discount on the total amount at the time of checkout.
The discount can be in the form of a coupon code or can be automatically applied once the order meets the threshold.
This is a very efficient way to convince people to buy more by paying less. However, you need to ensure that your discount rate doesn’t bring the order rate below your current average. So do your math well before you try this trick.
Create Bundled Packages
Another way to tempt your customers to buy more is by creating bundled packages. The idea behind creating these bundles is to create a package of products that customers may be interested in purchasing together.
You can easily increase your AOV by bundling various related products. For example, you can create a bundle that includes a mouse, a keyboard, noise-canceling headphones, and a webcam. All of these products are related, and when buyers see that they can pay less money by buying all of them together, they’ll surely purchase the bundle rather than buying each product individually.
Besides, customers don’t mind spending a little more to get a better deal. Also, you don’t have to give huge discounts on these bundles. According to a study on the effect of bundling strategy, a 5% discount works as good as a 20% discount.
This means that no matter what discount you’re offering it acts as a great bonus for your customers. It can also instantly increase the value perception of the product which is why people get tempted to purchase it.
Have you heard of FOMO? FOMO or Fear of Missing Out is the psychological trigger that almost all human beings respond to when they see others doing something that they haven’t done yet.
It’s a concept that marketers use to boost their sales and increase their conversion rate. You too can use it to increase your Average Order Value.
The idea is to offer a sale or a discount or any other tempting deal on your website and then create urgency by telling your customers that the offer is running out.
For example, you can run a limited period sale offer and add a countdown timer to show people that their time to get the offer is running out. You can also display the real-time activity of others purchasing it just to show that the stock is decreasing.
This creates a sense of urgency and people will take quick action in the fear of missing out on the opportunity. This is a great way of clearing your stock and increasing your Average Order Value.
Upsell and Cross-sell Complementary Items
Another way of encouraging people to buy more on your website is to display related products for upselling or cross-selling.
For upselling on your website, you need to promote a more expensive product to your customer than the one that they have added to the cart. For example, if a customer purchases a domain name for 1 year, you upsell it by telling them that they can get a discount if they buy it for 2 years together.
In the case of cross-selling, you simply promote related products to encourage your customers to buy more from you. For example, if a customer buys a pair of trousers, you can cross-sell by displaying a matching shirt and a tie that the customer may be interested in.
This idea is a little like creating bundled packages, except in this case you let your customers purchase the products or services individually.
Offer Gift Coupons
The next solid way to increase your AOV is to offer gift coupons. For example, you can offer a 5% discount coupon to your customers which can be redeemed on their next purchase from your site, if they shop for a certain amount.
People love discounts. So even if it’s a 5% discount they will definitely come back to use it. And when they do that, they are actually spending more by buying another product from you. This is a very clever way to convince people to buy more from your store.
Most marketers ignore the potential of their existing customers and they often try to figure out new ways of attracting leads. But in doing so, you also need to consider that these leads are your potential customers who may or may not choose to buy your products.
Your existing customers, on the other hand, have used your products and services. This means that they already know and trust your brand. That’s why it’s more likely for them to buy more products from you if they find great deals and offers on your site.
So rather than wasting your time and money in capturing new leads, focus on your existing customers to grow your Average Order Value and increase your revenue.