9 Smart Ways to Increase Your Average Order Value
It takes a lot to get someone to the checkout page of your online store.
From capturing their attention to piquing their interest to building a relationship of trust — each step is essential to increasing sales and growing your business.
So when they’re finally at checkout, you want to do everything possible to make the most of it.
And that means finding clever ways to increase your average order value (AOV).
At GetPaid, we know that when it comes to boosting AOV, you don’t want a bunch of complicated solutions.
You want something simple and effective that works without disrupting your customer’s checkout experience.
That’s why we’ve rounded up nine smart ways to increase your average order value.
Ready to boost your revenue? Let’s go!
What’s AOV: “Average Order Value”?
Average Order Value (AOV) measures the total amount spent on each order by a customer.
It’s calculated by taking the total sales for all orders and dividing it by the number of orders placed in that period.
1. Bundle products together for a double win
Product bundles are like those meal deals you often see at your favorite fast food restaurant – you can get a burger, fries, and a drink for a discounted price.
In the same way, businesses package complementary products or services together to sell as a single unit.
- When businesses offer product bundles, it’s a great way to increase sales. Customers are more likely to buy multiple items when they are offered in a bundle at a discounted price. Plus, who doesn’t love a good deal, right?
- Bundling allows businesses to increase profits by packaging low-margin items with high-margin items. This increases the perceived value of the bundle without significantly increasing costs. So, it’s a win-win situation for businesses and customers alike.
- Product bundles offer a complete solution to customer needs, which leads to a more satisfying experience. You can meet all your needs in one go and get everything you need in a single package.
- Lastly, you can differentiate offerings from competitors with product bundles. This adds perceived value to their product line and helps them stand out in a crowded market. You get the best of everything, and the business distinguishes itself in the customers’ eyes.
If you’re using WordPress, you can use the GetPaid Sales Funnel plugin to implement the “Order Bump” feature that allows you to add extra products and services to your order with a single click, which can quickly boost AOV.
Related: GetPaid Installation Guide
In the example above, we propose an attractive glass espresso coffee cup as a supplementary purchase for a premium coffee subscription.
If the customer checks the “+” button, this item will immediately be added to their shopping cart.
2. Add a free shipping threshold to incentivize a fuller cart
Free shipping thresholds are a marketing technique businesses use to incentivize customers to increase their cart size.
A free shipping threshold is a minimum order amount a customer needs to reach to qualify for free shipping.
For example, if you set the free shipping threshold at $50, customers will need to spend this amount before they can qualify for free shipping.
This encourages customers to add more items to their cart since they know that doing so will help them reach the minimum order amount.
Some real-life examples include:
- Amazon’s Prime program offers free two-day shipping on orders over $25 and other benefits like streaming video and music. The program’s success has made free shipping a standard in online retail.
- Sephora offers free shipping on orders over $50, incentivizing customers to purchase more items to reach the threshold.
- Kylie Cosmetics offers free shipping on orders over $40, a lower threshold than other cosmetics retailers.
- Chewy, an online pet store, offers free shipping on orders over $49.
When setting up a free shipping threshold, you should consider the average order size of your customers.
If your average order value is already relatively high, then you don’t want to set a minimum purchase amount too low, as this will only result in fewer purchases.
On the other hand, if your average order value is quite low, setting a reasonable minimum order amount can help you increase AOV without upsetting customers.
3. Offer non-invasive upsells and cross-sells
Upselling and cross-selling are great ways to increase revenue and AOV without annoying your customers.
According to a 2022 HubSpot Survey with over 500 sales professionals, upselling and cross-selling have accounted for as much as 30% of revenue.
- Upselling is when you offer a better, more expensive version of the product your customers are already interested in.
- Cross-selling is when you suggest additional products that complement their current purchase.
For example, if a customer is purchasing a laptop, you can upsell them to a higher-end model or cross-sell them an extended warranty or a laptop bag.
Pro tip: It doesn’t always have to be another physical product you’re up/cross-selling.
A simple, cost-effective way to differentiate from competitors could be to offer a digital product that complements your physical.
For instance, if you’re selling a massage gun, you could offer a PDF cheat sheet of complementary stretching exercises and tips on how to use it effectively.
GetPaid lets you implement low-profile, one-click upsell and cross-sell options (both physical and digital) to remove any friction from the process.
In the demo below, we offer a premium coffee machine as the upsell to the coffee subscription.
If you click the button saying: “YES, ADD IT TO MY ORDER,” no further action is needed, and the payment is retroactively processed.
Related: How to add items on GetPaid
4. Offer volume discounts
Volume discounts (also known as quantity discounts) are a great way to encourage customers to purchase more products or services.
By offering a tiered discount system, customers who need multiple items will be incentivized to purchase all at once.
This is especially useful for businesses selling bulk products or services, such as office supply stores, print shops, and even yoga studios.
For example, a yoga studio might offer lessons online at a discounted rate for the more classes you take:
- 1 to 4 Yoga lesson costs $30 each.
- 5 to 9 Yoga lessons cost $25 each.
- +10 Yoga lessons cost $20 each.
To implement this on GetPaid using the quantity discounts add-on, you must create an Item titled Yoga Lessons and set the main price to $30.
Then in the “Price Variation by Quantity” field, you’ll have to enter the price in the following format:
This is how it’ll look on the back end.
And on the front end, customers will see this:
You can also offer volume discounts for subscription-based services.
For example, you can offer a discounted price for your coffee subscription business if a customer purchases 2 bags per month instead of 1.
5. Use the item success page strategically
Most eCommerce businesses will celebrate after a purchase.
But great eCommerce businesses know the show’s not over yet.
Once a purchase is made, you can redirect the user to a success page that you can repurpose with a couple of revenue-generating ideas:
- Everyone likes recommendations! Use the item success page to suggest other products the customer may be interested in based on their purchase. This can help customers discover new products that complement their purchases and encourage them to add more items to their cart, increasing the average order value. It’s like having a personal shopping assistant to help you find the perfect items to complete your purchase.
- Loyalty programs are like a little bonus for customers. Use the item success page to promote a loyalty program that rewards customers for repeat purchases or for making larger purchases. This can incentivize customers to purchase more items and increase the average order value while increasing customer loyalty. It’s like being part of an exclusive club where you get rewarded for being a loyal customer.
- Ask people to share the news on social media. This promotes word-of-mouth marketing that helps your business reach new audiences and encourages customers to tell their friends about your business. It’s like having an army of brand ambassadors helping you spread the word.
The great thing about using GetPaid’s Custom Item Success Page add-on is that you can link a unique success page for each item, allowing you to customize customer experience based on their purchase.
For example, if a customer purchases a yoga mat, the success page can suggest yoga classes or equipment they may be interested in.
6. Make customer service a priority
You can make customers feel safe and more comfortable with a larger purchase by offering excellent customer service, leading to higher average order values.
It’s essential to make customer service readily available in multiple channels. For example, customers should be able to reach out via email, phone, or chat during business hours. Some more tips:
- Provide timely and detailed responses to ensure that customers feel heard and taken care of.
- Respond to customer feedback promptly and proactively, as this can make them feel their opinion matters to you.
- Make sure your customer service representatives have the knowledge and training they need to answer customers’ questions quickly and accurately.
7. Show how much you’re loved
93.4% of online shoppers rely on customer reviews when researching online retailers they are unfamiliar with.
And 91% of consumers between 18 and 34 trust online reviews as much as they trust personal recommendations.
When customers see that your business is highly rated, they’re more likely to trust it and make larger purchases.
Show your customer reviews prominently on the homepage of your website, product pages, and even at checkout.
This will help convince customers that your brand is trustworthy, which can encourage them to purchase with confidence.
8. Test out different website and product copy
When it comes to eCommerce copywriting, you want to make the words work for you.
Often, a few minor tweaks to your website copy and product descriptions can make a big difference.
- People love stories! Use storytelling in your product descriptions, about us page, and blog posts to help customers understand the benefits and value of your products. It’s like conversing with a friend where you share how a product has helped you and why it’s so great. This can increase the perceived value of your products and encourage larger purchases.
- Create a sense of urgency (FOMO) with the language you use to encourage customers to make a purchase. This can be as simple as using phrases like “limited-time offer,” “while supplies last,” or “sale ends soon” to create a sense of excitement and encourage customers to take action and make a purchase, which can increase the average order value.
- Focus on the benefits instead of features: Customers are more interested in how your products can help them solve problems or improve their lives. Highlighting the benefits can increase the perceived value of your products and encourage larger purchases.
- Try to follow a copywriting formula instead of writing freely. Having a structure to follow can help you create more compelling and persuasive product descriptions, which can lead to higher-order values. Some popular copywriting formulas include AIDA, PAS, and FAB.
If persuasive communication isn’t your forte (don’t worry, it isn’t for many), lots of successful online businesses opt to hire expert eCommerce copywriters to help maximize the impact of their website and product copy.
Also, consider testing out different visuals, like adding videos to show how the product is used or featuring customer photos with their reviews.
9. Offer a wide range of payment options
The last thing you want to do is to miss out on purchases because customers can’t choose a payment option that works for them.
To increase average order value, you should offer multiple payment options to customers.
By offering different payment methods, such as PayPal, Apple Pay, and credit cards, you can make it more convenient for customers to purchase from your business.
When you pick a payment plugin like GetPaid to manage your revenue, you can offer customers various payment options and gateways so they can pay however they feel comfortable.
Start increasing your Average Order Value with GetPaid today.
Increasing your Average Order Value doesn’t have to be a daunting task.
By following the tips outlined in this article, you can start making small changes that will help drive larger purchases from customers.
With GetPaid, you can easily manage your revenue streams with one easy-to-use plugin and set up a money-making sales funnel – so why not get started today?
Tip: You can save 90% by purchasing a membership or lifetime license instead of paying for the add-ons to increase your AOV individually. Browse plans here.