Improving Average Order Value (AOV)

Analysing conversion rates and optimising your marketing strategy are great ways to improve your online business. But we should never forget about the basics.
Average Order Value (AOV) = total sales revenue divided by total number of sales

Say you sell widgets. Last month total sales were $25,000 and you had 125 orders. $25,000 divided by 125 = $200, so your Average Order Value was $200.

By diving deep into your store’s Average Order Value, you can learn valuable information, including if should re-evaluate your cross-selling, up-selling and loyalty programs. Keep in mind the same customer could have multiple orders. AOV determines sales per order, not sales per customer.

TIPS TO IMPROVE YOUR AVERAGE ORDER VALUE

BUNDLE RELATED MERCHANDISE

Let’s say customers come to your site looking for widgets. Want to increase their average order? Bundle your widget with a widget screen protector and a widget holder. This small change can have a big impact. Take a look at purchasing trends of your customers and look for products that are commonly bought together. Bundle these products together.

Easily set a price for a group of products when they are all purchased in the same cart in Arpastart eCommerce
FREE SHIPPING THRESHOLD

Have you seen offers like “Free shipping when you spend over $49.99″ when shopping online? It’s like a game for your customers. They will keep putting products into their cart until they reach the point where they get free shipping. Win for your customers, win for you. This also helps business owners who struggle to offer free shipping on all orders.

Arpastart eCommerce features everything from easily configurable, to complex shipping rules to cater for a variety of store needs.
UP-SELL & CROSS SELL

I know many people are not comfortable with the idea of up-selling and cross-selling, but don’t underestimate the power of these tactics. A small fee for gift wrapping or a tiny suggested item add-on can equal great profit margins.

Arpastart eCommerce offers a range of up-selling and cross-selling features to increase your Average Order Value
LOYALTY PROGRAMS

Segment marketing campaigns into low, medium and high Average Order Value. This will help you identify your “best” customers and offer them what is needed to get them to come back and buy even more. You could start discount programs, or even affiliate referral programs.

Reward your customers with a points system and keep them coming back for 'free' purchases with Arpastart eCommerce, or have other people do your sales work for you with an affiliate program.
2018-05-19T22:52:17+00:00 February 2nd, 2015|Online Stores|

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