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You don’t want to increase your AOV only to find your overall conversion rates are tanking! Conversion Rate: The conversion rate is defined by the number of conversions divided by the total number of visitors.Just focusing on increasing your average order value can be a great way to increase your gross profit but make sure you’re also keeping tabs on a couple other important metrics: Keep these other e-commerce key metrics in mind For example, to increase the AOV of your high frequency shoppers, you can enroll them in loyalty programs. big spenders and low vs high frequency shoppers depending on purchase history.

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Return policy: 'Feel free to send them back if you're not satisfied'Ī great way to implement these strategies is to segment out your customer base into multiple groups such as small vs.

Donations: (to a non profit for minimum purchase).

Coupons: “Spend $50 and get $5 off your next purchase!”.

Free shipping: (for a higher minimum purchase).

Volume discounts: “This hand towel costs $9, but you’ll save 30% if you buy 3 or more.”.

Upselling: “Would you like this pair of tennis shoes for only $10 more than the pair in your cart?”.

Cross-selling: “How about some socks to go with the tennis shoes you just ordered?”.

Successful strategies for increasing AOV include:

Getting a customer to spend more can be accomplished through savvy merchandising methods – putting an enticing selection of products in front of them and displaying them in such a way that they are motivated to purchase – or by direct incentives, such as free shipping. Alternately, you could suggest that they consider a more expensive, perhaps even a bestselling, alternative. You can nudge your customer to purchase additional products related to what is in their shopping cart, perhaps the ones that are easily forgotten, like batteries for an electronic device or light bulbs for a lamp. Optimizing your AOV can take place across all steps of the sales funnel. These strategys are essentially different ways to get your customer to spend more, either by buying more products than they had originally intended or by buying more expensive products than they had originally intended.

There are a number of strategies that may increase your average order value. 7 tips for improving average oprder value (AOV) Since there is a transaction cost associated with each order, increasing your AOV is a way to drive direct revenue and increase your profits when customers are already buying from your store. Increasing traffic typically costs money, while increasing AOV does not. Sometimes marketers focus much of their energy on increasing traffic to a website when it would more impactful and profitable to increase their AOV. Knowing your company’s average order value helps you evaluate your overall online marketing efforts and pricing strategy by giving you the metrics needed to measure the long-term value of individual customers.Īs a bench mark of customer behavior, the AOV helps you set goals and strategies and evaluate how well those strategies are working. Like other key metrics, AOV can be tracked for any time period, but most companies monitor the moving monthly average. $31,000 divided by 1,000 = $31, so September’s monthly AOV was $31.ĪOV is a key performance indicator that online businesses measure to understand their customers’ purchasing habits. To calculate your company’s average order value, simply divide total revenue by the number of orders.įor example, let’s say that in the month of September, your web store’s sales were $31,000 and you had a total of 1,000 orders. Average order value (AOV) tracks the average dollar amount spent each time a customer places an order on a website or mobile app.

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