As a Shopify store owner, some things make you feel like a King. Or Queen!
The traffic to your site is steadily increasing. Your conversion rates are something to be proud of.
But then, you go through your average order value...
… And the consistently low number knocks you out of your good mood.
Getting new customers is all well and good.
But I will let you in on an open secret...
Increasing your Average Order Value (AOV) through your existing customers can improve your overall eCommerce sales growth.
And you don't have to spend big bucks!
So with the right strategies, you can increase your Average Order Value for your Shopify store.
Let's begin by discussing...
What Is Average Order Value?
Average Order Value (AOV) is the average monetary amount your customer spends when they purchase from your online store.
AOV is also one of the essential metrics for eCommerce brand owners. It shows them how their efforts affect consumer behavior.
You might be wondering...
How Can I Calculate AOV?
Here's how you can compute your average order value:
Divide the total revenue of your store by the total number of orders.
For example, your store's overall revenue is $4,000. Split that among 100 orders, and your AOV is $40.
Therefore, your customer spends $40 for each purchase on average.
Don't forget that your AOV considers sales per order, not sales per buyer. Your average order also does not include the costs of marketing.
And because average order value does not directly impact revenue, some might not consider this metric.
But as a Shopify store owner, you need to know the...
Benefits Of Increasing Average Order Value
When you increase the average order value, you can...
- Increase revenue and profit. Yes, AOV does not directly affect your revenue, but it has a strong correlation with it.
- The more you sell on every order, the more profit you'll gain.
- Profitable return on marketing. Once you subtract taxes, product costs, and marketing costs on your AOV, you'll see how little you earned. But with increased AOV, comes more ROI.
- Sell more stocks. Once you boost your AOV, you can sell more of your products or services.
How amazing is that?
Increasing average order value means more money for your online store.
But you might struggle to get it right.
So keep reading and know...
How To Increase Your Shopify Store's Average Order Value 2023?
1. Display Customized Product Recommendation
The first strategy you can do to increase average order value is to get personal.
Yep, your customers like it when you recommend products you think they might like.
Barilliance's study even shows that with a single recommendation, their AOV multiplied by 369%.
This goes to show how more customers react positively when you know their needs and wants.
That means you have to create an excellent shopping experience. This can make them feel special enough to become loyal customers.
One way you can do this is to recommend products based on their browsing behavior.
For instance, your visitors look at products they are interested in without purchasing them. They might come back later with a desire to buy it.
So, you can make it easier for them to find that particular product.
Use the Debutify Add-On Recently Viewed. It will display the products your visitor saw while browsing your online store.
Here's how you use it:
This can encourage customers to buy the same product they viewed before.
That's how you can make your customers feel special... through a personalized buying experience!
Another way to increase the average order value of your Shopify store is to...
2. Cross-sell/Upsell Relevant Products
Did you know that to increase AOV, you have to add more value to your customer's purchase?
You can do that by cross-selling. Add to that, you can also upsell items to the purchase.
To give you a better idea, cross-selling is adding complementary products.
For example, your customer has beauty products on their current purchase. You can drive them to buy more when you cross-sell skincare products.
When cross-selling, make sure the products you cross-sell are relevant to the product.
Recommending coffee to someone looking for swimwear sounds weird, doesn't it?
On the other hand, when you upsell products, you nudge customers to buy more expensive items.
An instance will be if your customer wants to buy a phone. You can entice them to buy the more expensive, latest model instead.
But be careful with this strategy!
When you upsell, make sure that you personalize the products you recommend. Your customers don't want to feel like you are selling to them.
Keep working on your average dollar amount and...
3. Leverage Time-Limited Offers
To increase AOV, you can leverage customers' FOMO - their Fear Of Missing Out.
That's right... You can use the fear of missing out to amp up your store's revenue.
Your customers do not like the idea of missing out on an excellent deal.
So, make use of that urgency to increase your conversion rate. Time-limited deals can increase AOV, especially during your slow seasons.
You can post on social media and your landing page about your time-sensitive offers.
Or, you can also add a countdown timer on the product pages of your Shopify store.
Speaking of Add-Ons...
4. Down-sell Add-Ons
Imagine yourself at a grocery checkout.
While waiting in line, the chocolate bars on the checkout counter keeps beckoning you. So without thinking about it, you grab some and dump them into your cart.
The process is quite simple, isn't it?
You can increase AOV by offering low-price add-ons. This is downright effective for customers who didn't want an upsell.
When you offer discounts on their recommended products, they are keener on buying the add-on. They will see that the add-on is much cheaper than the product they're buying.
That will encourage them to add more to their next purchase, too.
Not enough average order value strategies for your Shopify store?
Don't worry, we have more!
Let's continue with...
5. Create Product Bundles
Who loves saving money?
Your customers sure do!
And you can offer them exactly what they want through bundle deals. You can mash up your related items together and sell them at a discounted price.
For instance, you're selling kitchenware such as pots and pans. You can create bundle deals that include accessories such as ladles, oven mitts, etc.
Offering discounts on the bundle deals make sense, of course. It will make the perception of them saving money more evident.
This way, your customer can purchase bulk orders, which can increase the average order value.
Want to increase AOV even more?
Offer customization options on your customer orders. Let your customers pick what they want on their order.
You can incentivize your customers into purchasing larger quantities with the Upsell Bundles Add-On.
It will show your customers a frequently bought together bundle. In just one click, they can buy different products in one go on your Shopify store.
Give your average order value another boost and...
6. Offer Free Shipping And Free Gift
I myself am guilty of this...
I sometimes buy things online just because of its free shipping offer.
And there's nothing quite like it!
Its enticing appeal is the reason why it has become a staple for online shopping.
Offering free shipping is a great way to increase your average order value.
All you have to do is set a free shipping threshold on your Shopify store.
Let me explain.
For instance, you calculated your AOV, and it's come up to $50. Aaron Zakowski advises that you set your free shipping threshold by 30% higher.
So, you can offer free shipping when your customer's minimum spend is $65.
The threshold will seem accessible to your customers, which will overall increase your store's AOV.
Persuade your customers further by incentivizing them with a free gift.
This way, your customers will also remember you for their future purchases as a generous store.
So, go to your theme settings. You can use the Add-On Cart Goal for your customer to avail free shipping.
This shows up when a customer reaches a specific cart total amount.
Your store can also drive sales when you...
7. Create A Customer Loyalty Program
Did you know that customer acquisition costs 5 times more than retaining an existing customer?
Think of all the money you save on your marketing when you have repeat customers!
With a loyalty program, you can retain your existing customers.
Of course, a loyalty program also helps increase your AOV.
And you can get more repeat customers through loyalty programs. Your customer can earn points for every order they make in your store.
They can earn discounts or gifts once they reach a certain point.
Not only that, but you also build better relationships with your customer base when you have a loyalty program.
Each loyal customer you have can be a brand evangelist. They will freely promote your brand to their friends and family.
A good loyalty program sounds good, eh?
It's all in your hands now to...
Raise Your Average Order Value, Above And Beyond!
And that's you turn your average order value into something above average!
Here's an extra tip for your Shopify store...
Focus on your high-intent visitors. They already want to purchase...
So the ball is on your court to help them find more products to buy from you.
The more your customers spend, the better for your store.
Psst... Do you know what will make your customers stay and purchase?
It's when you have a bangin' Shopify theme.
So use Debutify! Because it's more than a Shopify theme. It can also be your partner for profit optimization.
Your AOV will increase in no time with Debutify's 50+ Add-Ons, your AOV will increase in no time!
Check out the must-have apps for AOV growth!