Every entrepreneur or online store marketer knows that the growth of the number of visitors usually means a higher number of orders. That’s the reason why most are investing money and time in ways of getting more and more traffic to the e-commerce store. But is that traffic used efficiently? As the time passes - store owners notice that the orders' value remains constant and even though you have new and loyal customers, who order repeatedly, the average order value doesn’t change much. This raises questions like
How could I increase this number?
What strategies do I need to use to increase average order value by a high margin?
How do I motivate visitors to buy more?
In this article, I am going to describe 4 efficient strategies which are going to help you increase the average order value in your store and add a new skill in your marketing head resume.
1. Offer free shipping if the value of the items in the cart exceeds a specified limit
The easiest way to increase the average order value is to offer free shipping to buyers who reached a specific value of the items in their cart. You can do this easily using one of the many email marketing automation tools available. Experts from the e-commerce business state that users are motivated to buy more when they have the option of free delivery for the ordered goods. For example, a message like this could be used: "Free shipping on all orders over $100". Let your customers know about how much more they have to spend to reach free shipping every time they add a product to their cart. For example, a message like this could be used: "Spend $28 more to get Free Shipping"
2. Cross-sell and Upsell
Cross-sell - Offer additional products when the buyer adds an item to cart. For example, when a user intends to buy a laptop, you can offer him a mouse for it.
Beware. Don't try to offer your users a laptop when they buy a mouse. The price of the additional product should be lower than the price of the base product.
Upsell - Offer an upgraded version of the current product, with a greater price. For example, if a user adds a pack of 1KG of coffee to his cart - offer him a package of 2KG. The best scenario is when the price of the upgraded version of the product is more convenient, for example when buying the 1KG version - the price is 20$/KG, but when buying 2KG - the price is 15$/KG. The buyer should feel like he is saving money when actually, he's just spending more.
3. Product recommendations
Recommendations play an important role when speaking of increasing the value of the order. These could be placed on the product pages as well as on the cart page. Product recommendations should always have a high level of relevance to be efficient, and should usually be based on the cart content or order history, so the user sees a point in adding them to his cart. The most popular example of product recommendations could be seen in fashion stores. For example, when someone intends to buy a pair of jeans - a shirt or shoes from the same collection are recommended.
Tools like Tagalys helps eCommerce retailers to personalize and customize the product recommendations. Tagalys lets you create instant product recommendations for any occasion, event or marketing campaign using widget creator.
4. Loyalty programs
At first sight, loyalty programs seem to only have an impact on customer lifetime value, but if set up correctly they can affect the average order value too. You can notify your visitors that if they spend a specific amount in your store they are gonna be rewarded with a discount code. This motivates them to reach that amount faster and sometimes even from only one order. For example, you can display a bar saying: “Spend $150 in our store and get a coupon worth 25$.”
No matter how much traffic you get, use it efficiently. Implementing one of these strategies or even every one of them you'll notice a drastic increase in your traffic efficiency and average order value. Don't lose your time and get started using Personizely to achieve that.