Investing time and resource on increasing your average order value (AOV) should be at the top of your to-do list. Why? Because, if a customer is on your site and about to make a purchase you’ve already done the hard work in getting them to this point. The customer is committed. They are about to make a purchase. It’s up to you to make the purchase as valuable as possible.
So what can you do to make them buy more and spend more money?
A product bundle is a group of primary products that are related to each other. For example a washing up bowl, washing up liquid and sponges. Items that you would expect to buy together. By offering a bundle like this to your customers it makes it very easy to up-sell several products and increase the AOV. The customer likes it as it shows personalisation of their shopping experience as well as making it easy to shop for the other items that were probably on their list already. They no longer have to search for related items. To further entice your customers, why not add a discount for buying the items altogether.
On a product page it is a good idea to show alternative items. For example if a customer is looking at a Blue full length dress, show them similar items. This is often known as ‘Products you might also like’. This can vary in style and colour but should still be similar. It is also worth considering cross selling, by offering complimentary items. For example showing complementary jewellery or shoes to match the dress. This will once again reinforce the personalised shopping experience as well as save the customer time browsing related items.
Free shipping when you spend over £50 is an excellent example of reward based shopping. When setting rewards or discounts like this it is important to consider the average product cost and shipping rates to make sure it is an enticing offer and also won’t leave you out of pocket. Many sites now offer a points based loyalty program. Magento offers this whereby the more customers buy, the more points they will earn. These points can be saved up and then redeemed for products, vouchers, discounts and free gifts.
It’s a good idea to also make it obvious in the basket how much the customer is saving. This will make them feel less guilty about making the purchase if they can see that they are getting a good deal.
Use the information you’ve collected about your customers to help recommend products for them. Analyse your data based on the following:
This may sound like an expensive option to offer but research shows that if a customer’s thinks that it will be expensive or difficult to return something then they will probably end up spending less on fewer items. If however it is easy to return the items they are more likely to buy more and spend more. In this case they are also less likely to return the items. The customer just wants the peace of mind that they have the option to return the goods and get a refund. This is where it is a good idea to offer free P&P incentives on orders over a certain value.
All of the above strategies can be implemented into your site. If you’d like to discuss further or need help to increase you AOV then drop us an email or give us a call.
3 Min Read
Published: 30 November 2018
Mat is the founder here at Actuate. His role focuses on strategy, culture, looking after our clients and every now and then getting stuck in with coding.