As a brand owner, let me ask you something...
How much do your customers spend on your ecommerce store?
If you think it's a little low...
I know just exactly what you need.
You need to increase your average value!
Trust me, a lot of ecommerce brand owners struggle with this.
And you're lucky because that's what we'll be talking about today.
I will discuss what is an average order value, why you need it, and 7 proven optimization strategies that will help you!
I know you are just as excited as I am, so what are we waiting for?
Let's jump right in!
What Is Average Order Value?
So, an average order value or AOV is the average amount your customers spend on your store. You can also call it average basket value or ABV.
And this is one of the most important metrics that you should keep an eye on. Why?
Because if you know your company's average order value, you can enhance your marketing efforts and psychological pricing strategy. You can use these metrics to measure the long-term value of each customer.
Since you already have an idea what is average order value is...
You're probably wondering... how to calculate average order value?
You just get your revenue and divide it by the number of orders.
Let's say your Shopify store's revenue for November was $15,000. And the number of orders was 200.
So, $15,000 divided by 200 = $75.
That's your monthly average order value.
So, how do you find these values?
You can find it by browsing your Shopify customer report.
Inside the report, you can also find other metrics like customers over time, customers by location, and one-time customers.
You can use Google Analytics to track these data too!
Now that you know how to find and calculate average order value...
Let me tell you why you need to keep track of this metric.
Why Is Average Order Value Important, Anyway?
If you're thinking why is average order value is important, there are 3 main reasons why.
The first reason is to...
1. Improve Your Marketing Strategies
Do you want to know what is a good average order value?
The research found that it's between $54 and $249.
Of course, it depends on the industry you're in.
So, why is it important? Because by knowing how to calculate average order value, you can improve your marketing strategies.
If you think you are below the industry benchmark, you can further enhance your ecommerce marketing strategies.
Pssst... by the way, I will show you THE actionable tips later!
Another important reason is to...
2. Get To Know Your Customers
If you know what is average order value... you can get to know your customers!
How? Because once you find out how to calculate the average order value, you can see the purchasing behavior of your customers. You can see how much they're willing to spend on your store.
And you can use this to optimize your pricing strategies.
Sounds impressive, right?
The next is...
3. Generate More Sales
To see how your Shopify store is performing and generate more sales!
Now if you're wondering how to increase your average order value, here's how:
7 Proven Optimizations to Skyrocket Your Average Order Value Today
Here's the first one...
1. Upsell Your Products
Before anything else, what is upselling?
Upselling is what you can do to get your customers to spend more than what they're purchasing.
It is when you encourage your customers to buy a pricier version of your products.
Now, how can this help you increase your average order value?
It's because you can sell a more expensive product, which means more sales. And another is because upselling to your existing customers can be a cheaper technique than acquiring new ones.
So, upselling can increase your customer's average order value. But how can you upsell effectively?
- Personalize the offer. Customers love personalized recommendations. And if you upsell products based on their interests, they might purchase them. That's why only offer them upsells that are relevant to their prior options.
- Don't shove it down their throats. I know you're trying to make sales, but don't be too pushy! If your customers see you pushing for more expensive products, it might irk them. Remember, not all your customers can receive your upsells well.
But wait, here's a magic trick for you...
Why? It wouldn't take much of your time because it's easy to customize and activate. You can choose the product triggers, call-to-action, and the products you want to upsell based on particular products.
Do it the right way, and you can upsell effectively! This also means... you can increase your average basket value!
So now, tell me that doesn't sound easy at all.
My next tip is...
2. Create Bundles For Your Customers
One of my tips on how to increase the average order value for Shopify is by creating bundles for your customers.
Let's say your customers are buying a yoga mat on your Shopify store. So, how can you make them purchase more products?
By creating bundles!
Suppose they're buying a yoga mat. You can include a simple workout tool and a water bottle. This bundle is cheaper as compared to buying them separately.
Now, how can this help you increase your average order value?
If your customers buy more products, it means you can generate more sales. But for them, it feels like they're saving money despite getting more products. Clearly, it's a win-win situation!
Am I right?
So, here are my tips when creating bundle products for your customers.
- Choose the right products. Your product bundles are useless if you don't find the right mix. Your cart abandonment rate might increase if your customers don't need a particular product from one bundle.
- Show them how much they're saving. Who wouldn't want to save money? If you show your customers how much money they can save if they purchase your bundles... this can increase your average order value.
And before I discuss my next advice on how to increase average order value ecommerce... I have a bonus tip for you!
If you're using the Debutify theme, you can easily add an upsell bundle. The best part? It's highly customizable! This Add-On allows you to add a specific bundle, product triggers, product offers, and more.
It's not so hard, right?
Now, let me discuss my next tip!
3. Add Limited Time Offers
Are you wondering why this is one of my tips on how to increase average order value ecommerce?
It's because this can trigger your customers' sense of urgency!
Let me tell you a secret...
If I'm shopping online and I see a product I don't need in the meantime... it takes me a few hours to decide if I will buy it.
But if I see that it's only on sale for 30 minutes... I will buy it immediately!
What makes it special?
Because this is how some, if not most, of your customers, feel.
That's why adding limited-time offers is one of my tips on how to increase average order value Shopify. Customers feel a sense of urgency if you show them that your offer is only available for a short period.
So, here are some of my tips when creating limited-time offers.
- Make sure the deal is great. Even if your offer is for a limited time, your customers won't purchase it if it sucks. You have to make sure that your deal is a steal.
- Use an exciting call to action. Now, to add more fuel to the fire, you need an exciting call to action! This will excite your customers more. So, you need to use words like "Limited time only!" or "NOW!"
These tips are already thrilling you, huh?
Let me show you another one...
4. Show Cart Savings
Who doesn't want to save money?
Perhaps not your customers.
Because showing how much they're saving can increase your average order value.
Let me ask you... if you see that you're saving even if you're adding more items to your cart... will you abandon your cart?
Probably not. So, just think of your customers who might do the same.
If you show them that they're saving despite adding several products to the cart, they might hit that 'Check out' button!
How to put this on your Shopify store? Your Debutify Theme lets you add a Cart Savings Add-On, which is perfect. Because you can just activate and customize it according to your liking. You can change the text and make it more powerful.
Another gem I have for you is...
5. Create A Referral Program
One way on how to increase average order value ecommerce is by having referral programs.
And before anything else, let's explain what's a referral program.
It's when you offer a freebie or discount to your existing customer if they refer a family or friend. Usually, both parties will receive a discount.
So, you can retain an existing customer AND acquire a new one. It's like hitting two birds with one stone!
That's why I have some tips on how to increase average order value ecommerce using referral programs.
- Use a popup. What's one way to grab your visitors' attention? Using a popup. If you're offering discounts for your customers, using popups can help them decide to join your referral program.
- Choose the right offer. This is important if you want them to join your referral program. You need to choose the right AND best offer that will excite them.
Remember, customers, love discounts...
Speaking of which...
6. Offer A Threshold Discount
A threshold discount is an amount-based discount.
For example, you're going to offer $10 off if they reach $100 upon checkout. Or it can also be free shipping. Whatever you like.
So, how will this help you increase your average order value?
Look. Customers love discounts. Offering discount codes might cost you, but they generate sales. And the more discount you offer, the more products they will buy from you.
Now, let me share with you some of my tips.
- Add a discount bar they need to fill. When your customers can see how much more they need to achieve a discount, this might encourage them to add more products. Why? Because they can that they are close to acquiring the offer.
- Utilize automatic discounts. This will help your customers because they don't have to enter codes upon checkout manually.
Sounds fantastic, right?
It's time for my last tip!
7. Add Product Reviews
This is likely one of my most important tips.
Why? Because product reviews, like social proof, can help your customers decide if they're going to buy your products.
If your potential customers see that other people love your products, they might purchase from your store.
And as a result, this can increase your average order value.
That's why I have some tips on leveraging your social proof!
- Add reviews under your products. This makes it easier for your customers to see the reviews. So, make sure to have room for each product they might show interest in buying.
- Give them rewards for leaving feedback. Okay, I don't mean a high-quality reward. You can give them points that they can use in the future. More reviews, more points!
These tips are so helpful, right?
So, what are you waiting for?
Get Ready To Increase Your Average Order Value!
Let me tell you a secret...
To increase your average order value without hassle, you need a theme that lets you add conversion triggers quickly!
Where can you find this?
Debutify is a Shopify theme that offers over 50+ Add-Ons for your ecommerce store! Some of them are perfect for increasing your average order value, such as:
- Upsell bundles
- Upsell pop-up
- Cart savings
- Discount saved
- Cart countdown
... and more!
If this sounds exciting to you...
You can try it FREE for 14 days!
14-Day Free Trial. 1-Click Installation. No Credit Card Required.