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7 Highly Effective Ways to Increase Your Average Order Value

Posted by Drew Estelle on Jan 14, 2020 12:37:05 PM
Drew Estelle

When looking to increase your baseline revenue, the first instinct is often to increase ad spend to get more customers in the door. But did you know that it is 68% more expensive to acquire $1 from a new customer than it is to upsell current customers?

Increasing average order value (AOV) is by far the most cost-effective way to grow your revenue. It doesn't require additional ad spend or website traffic. Instead, it simply focuses on increasing your bottomline by raising the amount your current customers spend with you

How is it done? Here are 6 proven tactics to increase average order value.

Boutique owner packaging up a free shipping order.

1. Give free shipping incentives

Customers don’t like being charged extra for a service such as shipping when they’ve already paid for a product. They are driven to buy more to spare themselves from the perceived pain of shipping costs. Enter the free shipping threshold.

A free shipping threshold is an incentive ecommerce stores offer when a customer checks out with a minimum specified dollar amount. It’s one of the most compelling incentives you can offer, with 58% of shoppers willing to add more to their cart to qualify for free shipping.

Related Reading: How to Offer Free Shipping Without Breaking The Bank


Smiling customer picks up her order from her favorite brick and mortar thanks to buy online pick up in store options.

2. Offer a Buy Online, Pick Up in Store option

BOPIS, or Buy Online, Pick Up in Store, integrates digital and traditional channels to satisfy modern customers’ expectations. Many customers are taking advantage of this popular option, as it cuts their delivery time and costs.

It’s not only customers that get flexibility and perks with this fulfillment option, however. Brick and mortars armed with BOPIS can do what online-only stores cannot, which is to take advantage of the resulting foot traffic.

49% of BOPIS shoppers are willing to purchase additional items in-store when collecting their online orders. Retailers can take advantage of this with attractive displays, in-store sales, and using store associates to up-sell.


3. Give the option of product add-ons

Not only are customers willing to pay for your product, but they’re also willing to pay 20% more if offered personalization. Monogramming and laser engraving have become popular product add-ons since they provide one-of-a-kind items.

If you’re not in the business of personalization, don’t forget gift wrapping. As simple as it may seem, this service is in high demand and a straightforward way to tack on extra cost. 


4. Grow basket size with discount offers

Offering discounts might seem counter intuitive to increasing your average order value, but it flat out works. What can we say? People love a good deal!

This method requires you to understand your current profit margin, markup, and breakeven point so you can turn a profit. Discounts are great for a boost when sales are seasonally lower. Additionally, they make easy work of getting rid of older inventory.

Some ecommerce platforms will even have the ability to automate personalized discounts. For instance, CommentSold can display intelligently chosen item suggestions with discounts once customers reach the check out screen. You simply set the parameters for your discount and age of inventory, and automation will recommend an enticing, complimentary item on your behalf. 

5. Use coupons to drive customer behavior

Coupons are a powerful driver for consumer behavior. By cutting prices, they convince customers to make purchases they might not have made otherwise. Better yet, they can keep your customers coming back for more. 

The most effective way to use coupons is to deliver them through email automation. Automation makes it possible to send highly personalized coupons and product recommendations based on past shopping behaviors right to their inbox. They’re also exceptionally good at luring shoppers into repeat purchases.


6. Offer Buy Now, Pay Later options

55% of abandoned carts are due to too high of a total cost of purchase. "Buy Now, Pay Later" website payment solutions, such as Sezzle, have now made it easy for customers to pay in installments. Not only does this cut down on cart abandonment rates, but it also encourages more spending without the pressure of having to pay it all in one lump sum.


7. Upsell with curated looks

Sometimes it’s as simple as changing the way you present products to your target audience. They may only need a fresh look at your merchandise. You can reframe the way they view items by creating product demos or showcasing a curated, branded selection of complementary items within look books or videos.

With over half of consumers reporting higher engagement with the brands they watch on social media, retailers are seeing their audience buying more than ever with the inclusion of video content.

Fit videos, Facebook and Instagram Stories, and Facebook Live Sales are all addictive, binge-worthy content customers want to see more of. They’re not only fun, but they’re informative and convincing, leading to an overall increase in the amount they buy with you.

The Takeaway

Increasing your revenue doesn’t mean you have to do a complete overhaul on advertising. It can simply mean optimizing your sales strategy to increase overall average order value.

There are many ways to increase revenue, but none will give you a higher profit per sale, generate more revenue for very little work, and free up money to spend more on advertising than these methods. 

Topics: Marketing, Business Strategy

Learn how CommentSold can increase your average order value.