20 Ways to Increase Average Order Value

Today, we’re embarking on a journey to uncover the secrets of turbocharging your revenue. If you’re itching to enhance your bottom line without delving into complex strategies, you’re in the right place. Our focus? The magic wand of e-commerce—increasing your average order value. Stick with us as we explore 20 practical tips to achieve just that.

Picture this: You’re running a business, and every sale is like a mini celebration. Now, imagine making those celebrations a bit grander without breaking a sweat. That’s where “increase average order value” comes into play, and we’re about to make it your new best friend.

How to increase average order value?

Let’s demystify the concept of Average Order Value (AOV) without the jargon. Imagine you run a store, and AOV is like knowing the average amount each customer spends every time they shop with you. It’s the money-making compass for your business. Simple, right?

Calculation: AOV = Total Revenue ÷ Number of Orders

Now, let’s put on our math hats for a moment. Calculating AOV is a breeze—just take the total revenue your store rakes in and divide it by the number of orders. Voila! You’ve got your AOV.

But why does it matter? Well, boosting your AOV means more moolah for you. It’s not about selling more; it’s about selling smarter. Now, let’s unravel the magic with a real-world example.

Example: the bundle bonanza

Meet Sarah, an online store owner. She decided to dive into the AOV game and introduced product bundles. By grouping related items and offering a discount when purchased together, Sarah enticed her customers to buy more. The result? A surge in the average order value.

For instance, if a customer usually spent $30 on individual items, they might now spend $40 on a bundled deal. That’s a $10 increase per order! Imagine if this happened across dozens, hundreds, or even thousands of orders. That’s the power of understanding and elevating your AOV.

Stay tuned for more practical tips and real-world examples to supercharge your AOV journey. Next up, we’ll explore the art of setting free shipping thresholds to entice your customers.

Why average order value matters

Before we dive into the nitty-gritty, let’s unravel why average order value (AOV) is the MVP of your revenue game. AOV is the average amount a customer spends in a single transaction. It’s not rocket science, and that’s precisely why it’s brilliant. By boosting this metric, you’re not just selling products; you’re maximizing each transaction’s value, giving your business a financial facelift.

Now, let’s get down to business. We’ll break down the AOV puzzle into bite-sized pieces, ensuring you can implement these strategies with ease. Ready to elevate your revenue game?

20 tips to increase average order value

In the dynamic world of online retail, increasing the value of each transaction is a strategic imperative for sustainable growth. This section is your roadmap to unlocking actionable insights, innovative strategies, and real-world examples from leading brands. 

From crafting an enticing returns policy to harnessing the power of augmented reality, we’ll explore a diverse range of techniques designed to not only boost your AOV but also enhance the overall shopping experience for your customers. 

Join us as we delve into the intricacies of e-commerce excellence and discover how these tips can propel your business to new heights.

1. Offer bundled deals

Offer bundled deals to entice customers to buy more related items at a discounted price.

Think of a popular electronics store that sells cameras, lenses, and accessories. By bundling a camera with a lens, tripod, and carrying case at a 15% discount compared to buying each item separately, the store encourages customers to make a complete purchase. This not only adds value to the customer by saving them money but also significantly increases the average order value for the store.

2. Set a minimum order amount for free

Set a minimum order amount for free shipping to encourage customers to add more to their cart.

Consider an online fashion retailer offering free shipping for orders over $50. A customer browsing for a pair of jeans might decide to add a stylish shirt or accessory to their cart to meet the free shipping threshold. This not only satisfies the customer by eliminating shipping costs but also results in a higher overall order value for the retailer.

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3. Creating time-limited offers

Create urgency by introducing limited-time promotions and encourage customers to make faster decisions.

Look at this example where Notino is giving a discount on Women’s Day, but only for a limited time, 1 week to be precise. Customers, fearing they might miss out on incredible discounts, are encouraged to make a quicker decision. The sense of urgency often leads them to discover more products and add more items to their shopping cart, ultimately increasing the average order value of the store.

4. Upsell extravaganza

After a successful sale, present higher-value alternatives or add-ons to increase the overall order value.

Imagine an online electronics store selling laptops. After a customer selects a laptop for purchase, a strategically placed prompt suggests upgrading to a model with more memory and a faster processor at a discounted post-checkout price. This enticing offer often convinces customers to enhance their purchase, leading to a higher average order value.

5. Create benefits that pay out loyalty gains

Picture Starbucks, where customers earn stars for each purchase. As stars accumulate, customers unlock different levels of rewards, creating a gamified loyalty program. Starbucks gamifies loyalty by assigning rewards to different star levels. Customers strive to reach higher levels to unlock more valuable rewards, encouraging increased spending.

Starbucks might have a “Double Star Day” promotion, where customers earn double stars for every purchase, speeding up their progress toward the next reward level. Customers are motivated to make more frequent purchases to accumulate stars quickly. Higher-value rewards drive customers to spend more during each visit, increasing average order value.

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6. Do tiered pricing mastery

Introduce tiered pricing, encouraging customers to buy more for more discounts.

Consider ClickUp, a service that offers tiered pricing based on usage. As customers upgrade to higher tiers, they unlock additional features and enjoy lower per-unit costs. This encourages customers to choose higher-tier packages, resulting in a significant increase in the average transaction value of the service.

7. Take advantage of cross-sell

Showcase related or complementary products on product pages to encourage cross-selling.

In this example, you can see that when browsing H&M’s online store, if you select any product, in this case, a t-shirt, the site will recommend other related products to buy in conjunction with the selected product. This also contributes to increasing the average order value for the online shop.

8. Make customer reviews available

Highlight customer reviews and testimonials to build trust and convince customers to add more to their shopping cart.

Think of an online beauty store, like Notino’s, that features glowing reviews of a skincare kit. As shoppers read positive reviews from others, they feel more confident to add more products to their cart. This social proof not only builds trust but also increases the beauty store’s average order value.

9. Create a gift card

Promoting gift cards is a simple and flexible way to increase the value of your order for your customers.

See how Zalando offers gift cards in different denominations. Customers who buy a gift card as a present may choose a slightly higher amount than originally planned, which contributes to an increase average order value of the online shop.

10. Create personalised recommendations 

Imagine yourself on Amazon again, but this time looking at the homepage or a category page. Amazon’s personalized recommendations pop up, recommending products based on your browsing and shopping history. Amazon’s algorithm analyses your past interactions, such as products you’ve viewed, items in your shopping cart, and previous purchases. Amazon uses machine learning to predict your preferences and recommend products that match your interests.

If you frequently buy science fiction books, Amazon’s personalized recommendations can include the latest editions of the science fiction genre, accessories such as book lighting, or even related products such as posters or collections.

11. Have your post-purchase surveys

After you book an Airbnb stay, you receive a post-stay survey. Airbnb sweetens the deal by offering a discount on your next booking in exchange for completing the survey. Airbnb uses post-purchase surveys to gain insights into user experiences and preferences. By offering a discount on the next reservation, Airbnb encourages customers to share their thoughts.

After completing a survey, Airbnb may provide a unique discount code to receive 15% off your next reservation. Customers motivated by the discount are more likely to book another stay, increasing their total spend on Airbnb. The information collected helps Airbnb improve its services based on customer feedback.

12. Create content-driven upselling

Create engaging and informative content that subtly promotes higher-ticket items, enticing customers to explore and add them to their cart.

Imagine a beauty brand launching a blog series on skincare routines. Within these articles, they seamlessly integrate recommendations for premium serums and treatments. As customers read and learn, they’re subtly nudged towards considering these higher-value products, ultimately contributing to an elevated average order value.

13. Create a social media buzz

One of the pioneers in leveraging social media for business growth is the global athletic brand, Nike. Nike has masterfully used social media incentives to not only boost its online presence but also drive sales.

Nike’s app, combined with its social media strategy, encourages users to showcase their athletic achievements. Whether it’s completing a challenging run or hitting a personal fitness milestone, users share their accomplishments on social media. What sets Nike apart is its unique incentive structure. 

The brand offers exclusive discounts and early access to new releases for users who share their achievements on social media using specific hashtags. This not only motivates users to participate but also turns their victories into a social event. A Nike app user completes a challenging workout and shares their accomplishment on Instagram, tagging it with #JustDoItChallenge. In return, Nike provides them with a personalized discount code for their next purchase.

The prospect of exclusive discounts motivates Nike app users to actively share their achievements on social media, creating a community around fitness and personal goals. Those inspired by the achievements of others, coupled with the allure of discounts, are more likely to explore Nike’s latest offerings and make additional purchases, thereby increasing average order value.

14. Create subscription services 

Introduce subscription options for products, giving customers the convenience of regular delivery and potentially increasing the value of their order over time.

Nespresso is a gourmet coffee company that offers subscription services to club members. Subscribing customers not only enjoy the convenience of having their favorite blends delivered regularly but are also likely to discover and add new limited edition releases to their subscriptions, increasing the overall value of their order.

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15. Create referral rewards 

Revolut, the innovative financial platform, has revolutionized customer engagement by introducing a referral program that not only fosters loyalty but also contributes to higher spending.

Recognizing the power of satisfied users in spreading the word, Revolut encourages its customers to refer friends to the platform. Users can easily invite friends to join the financial revolution through the Revolut app. What sets Revolut apart is its enticing referral bonuses. For every friend successfully introduced to Revolut through a referral, both the existing user and the new user receive exclusive perks. These can range from cash rewards to discounts on premium subscription plans.

A Revolut user invites a friend to join the platform, citing the benefits of seamless international transactions and fee-free currency exchanges. As the friend registers and completes their first transaction, both users unlock a reward – perhaps a cash bonus or an extended trial of premium features.

16. Make sustainable shopping

Leverage environmental consciousness as a strategy. Offer incentives or exclusive items to customers who choose sustainable options, encouraging them to explore and spend more on eco-friendly products.

Patagonia, a renowned outdoor clothing brand, promotes sustainability by offering store credit or exclusive merchandise to customers who recycle their old Patagonia garments. This not only supports their mission for a greener planet but also motivates customers to make additional purchases from their eco-friendly product line.

17. Create a virtual fitting room adventure

Implement augmented reality (AR) or virtual fitting room experiences, allowing customers to virtually try on products and discover complementary items.

ASOS, the online fashion retailer, integrates AR technology into its app, enabling users to virtually try on clothing items. By enhancing the shopping experience and reducing the uncertainty of online purchases, ASOS encourages customers to explore and add more items to their cart, ultimately increasing average order value.

18. Embrace voice-activated convenience

Embrace voice commerce by enabling customers to make purchases using voice-activated devices.

Amazon’s integration with Polly allows customers to add items to their cart and make purchases using voice commands. This frictionless shopping experience encourages users to explore and easily add products, and increase average order value as voice-activated shopping becomes more commonplace.

19. Provide a flexible returns policy 

A negative encounter during customers’ returns of items is likely to impact their decision to make future purchases from your business. 

Demonstrating transparency and flexibility will ease customers’ concerns about buying from you. Showcase your return policy on your website, and in cases where a customer returns a purchased product, be adaptable to ensure their return. Encouraging repeat customers is instrumental in growing the average order value.

20. Provide dependable customer support

Customers may require assistance before making a purchase decision. 

The absence of support on your website may lead them to leave. Integrating live chat ensures that all customer queries are addressed, fostering a greater likelihood of them making a purchase. High-value items, such as furniture, particularly benefit from having live chat support. Consistent utilization of live chat contributes to a heightened average order value.

Increase average order value with Capturly insights

Revolutionize your e-commerce strategy with Capturly, a dynamic tool designed to catapult your average order value to new heights. Dive deep into user behavior using Capturly’s robust analytics and heatmap features, providing invaluable insights into how customers navigate your website. Identify and refine potential stumbling blocks in the buyer’s journey, optimizing pages for maximum conversion rates.

Harness the power of Capturly’s session recordings to observe real-time user interactions, uncovering patterns and pinpointing areas for refinement. Armed with this data-driven precision, craft targeted upselling and cross-selling strategies, delivering personalized recommendations tailored to each visitor.

This precision optimization doesn’t just elevate the shopping experience; it propels users to explore more, seamlessly translating into a boosted average order value. With Capturly at the helm, businesses can make informed, data-backed decisions, sculpting a captivating online shopping environment that not only fosters customer loyalty but also fuels higher-value transactions.

Elevate your e-commerce game with Capturly, the indispensable tool for businesses ready to witness unprecedented growth in their average order value.

Conclusion

In this comprehensive guide, we explored 20 actionable strategies to boost your e-commerce business’s average order value (AOV). Beginning with a focus on the importance of a transparent and flexible returns policy, we delved into the significance of reliable customer support, emphasizing the value of live chat in enhancing the overall customer experience.

To tie it all together, we underscored the significance of leveraging tools like Capturly to glean insights into user behavior and optimize the online shopping journey. The article aimed to provide actionable tips, real-world examples, and a holistic approach to empower businesses in increasing their average order values and fostering long-term customer loyalty.

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