How To Boost Your Business’ Average Order Value
Your order value, the amount your consumers are buying at checkout, is low. How does that happen? Where did you go wrong? And, how can you recover from such a calamity? Don’t worry.
In this article, we’re going to offer as much information as we can on this aspect. There’ll be a tip or two available that can help you boost your average order value as well.
So, let’s get on with it.
Average Order Value – What Is It, Really?
Honestly, offering a definition of your business’s average order value doesn’t seem feasible at all. Therefore, we’ll try to provide a hypothetical example here for you.
Let’s say, your store has an overall revenue of USD 20,000 between 100 different orders. So, your average order value will be $200. It means that each of your consumers has spent that amount of money to avail of your services.
Traditionally, a business owner who knows that their AOV is around $200 will try to prompt their consumers to spend even more. For example, you can add a free shipping on your items in return for asking for $210 instead of $200.
However, there’s a hitch.
Using the aforementioned strategy will certainly help you improve your revenue stream. But, the profit margin of your organization isn’t going to increase this way.
How To Increase Your Order Value?
Increasing your order value can be quite a difficult and time-consuming task. So, you mustn’t expect our tips to start working right away. Being patient will be key in this aspect.
Tip – 1: Use More Than One Payment System.
Many storefronts tend to think that using a single payment system is enough for them. But, it isn’t true at all. The world is becoming more and more advanced every passing day.
And, if you’re unable to adapt to it, you’ll fall behind your competition.
So, when it comes to your payment system, we’ll ask you to maintain an online and an offline option for it. This way, it’ll be easier for you to serve more people and get money from them.
Besides, if you can, you should integrate a Crypto payment or trading system, like BitAlpha, into your financial infrastructure. It’ll expand your opportunities even more.
Tip – 2: Create An Order Minimum.
If you want to get your audience to add more and more products to their cart, you can provide a free shipping facility for them. However, it’ll only be applicable for them when their orders surpass a certain amount, such as USD 50 or more.
It’s a cheeky little strategy that’ll prompt your consumers to buy more from you. And, if you can offer them a small discount on everything, they might order even more.
Tip – 3: Provide A Bulk Option.
Do you have a group of products that are related to each other? Well, then, instead of selling all of them separately, you can try offering a bulk option to your consumer base.
It, in turn, will encourage them to leave the singular product and purchase the complete set by paying a lot more. However, as everything’s cramped together, they’ll feel like they’re getting a bargain for the price. Quite bold of a strategy, isn’t it?
Tip – 4: Customer Loyalty Program.
If a consumer is buying regularly from you, you can offer them a loyalty bonus to show your appreciation for their love. For example, you can provide a massive discount if the individual is spending more than $1,000 on your products.
Or, you can also offer a specific gift for them if they buy anything worth $500. Doing so can encourage your consumer base to return frequently and purchase more and more stuff.
Wrapping It Up!
The average order value is an important lever of your business that you can pull to grow the bottom line of your organization. Also, it doesn’t require too much marketing and all as well.
So, if you’re looking for a less-expensive way to grow your business, our tips can be ideal for you. Just believe it yourself and try to do something different from others.
Your way of success is just sitting around the corner!
This article has been published in accordance with Socialnomics’ disclosure policy.