3 Key Ways to Increase Your Average Order Value
Increasing the average order value, or AOV, is the other of the two methods you can use to increase your monthly revenue. Inspire your visitors to buy slightly more, or slightly more up-market products, using a clever combination of opportunity and incentive. There are three different strategies to achieve this goal.
1. CROSS SELLS
Cross sells are the easiest and fastest way to increase conversion rate. When a visitor shows interest in one product or category, that’s the perfect time to show them you have the perfect pair to go with it. Here are two ways to do that.
COMPLETE THE LOOK
To make these recommendations effective you can use manual recommender tool to hand-pick perfect paired products and incentivize your visitors to buy them together. First, identify some of your more popular products brainstorm a few products which go well with it whether as part of a set, to complete an outfit or accessories to pair with the main item.
These ‘complete the look’ campaigns are going to show on your product page, and specifically only the product page of that one popular product.
RETURNING VISITOR CROSS SELL
This ‘increased average order value’ campaign is perfect to target your returning visitors. They’ve already shown interest, they’ve told you what they like by purchasing it, and now they’re back on your site.
What you need to do now is to match their needs and create a campaign aimed at what they bought on their last visit. This way you can match their existing needs as well as anticipate their future ones, gaining their custom and their loyalty in the meantime.
First, think of a popular product that a significant proportion of your visitors have purchased. Then, think of a product which would be a natural cross-sell opportunity with it. For example, if someone has purchased leather shoes, leather protectant would be a great accompanying product.
With PureClaritys ecommerce personalization you can create segments and rules around who gets to see these campaigns i.e. anyone who’s purchased that first product but not the second in a time period of your choice – for example in the last three months.
These campaigns can be shown as a promotional banner, a product recommender on both the homepage and the product page, and only be seen by visitors who match the criteria you have set.
Incentives are a great way to push a hesitant shopper over the threshold to spending with you. This kind of campaign is best used only when you think you need it, and you think you have a good chance of converting shoppers. It’s an ideal way to increase average order value while still providing your customers with the service and care they expect from you. Here are two Campaigns to do just that.
The top-up campaign is geared towards helping people spend just a little bit extra. What you’ll want to do is let folks know that if they spend a certain amount, they’ll receive a discount.
EXAMPLE: If they spend $100, they’ll get 10% off.
However, you may not necessarily want to show this to people who typically spend over $100 anyway. PureClarity allows you to create a segment aimed at people whose AOV is below $100. It’s that easy!
For maximum impact we recommend putting this campaign content on the basket page to begin with – you want to capture those people who are just about to buy but hesitating.
This kind of campaign takes advantage of our natural tendency to celebrate, no matter how small the occasion! With this campaign, what you’re doing is selecting the occasion – whether that’s an existing one like Easter or Mother’s Day, or one you make up yourself – and then giving your customers a reason to spend.
First, pick the occasion.
EXAMPLE: You might have a sneaker week where customers spending over $300 get a free pair of sneakers.
Then, select the incentive, whether it’s a discount, a free item, or special service. Finally, decide who you want to target. We recommend choosing an audience which is going to be most tempted by the promotion and event – if it’s broad, like Easter, it can be aimed at everyone. But if it’s more niche, like Sneaker Week, you might be better off only showing it to people who have purchased sneakers before.
We suggest creating and placing a banner on the homepage for this – if you don’t want to make it your main event, you can always sneak in a microbanner underneath, just to ensure people are seeing it.
To go above and beyond, a second good place to put the content is on the basket page, again for folks who are under the value you’re aiming for.
This kind of campaign is perfect to nudge your shoppers into treating themselves to that small (or large!) luxury that you know is just right for them. The right customer segment for this campaign is one who’s a loyal customer with you, but who you think might be ready to take their shopping with you to the next level.
PROMOTE LUXURY RANGE
The best way to create this campaign is to think of a popular range of products which you have an upmarket version of. Maybe you sell cameras, computers, or clothing and you want to point out to your loyal customers that you have some higher end product they may be interested in.
Your best bet is to target the audience most likely to be interested in a higher option. This can be anyone who’s looking at the normal range. What you’ll do is create a Segment based on product views. Select the product, brand or category that you want to measure, and specify that they’ve looked at it at least once. Then add a condition to ensure they haven’t purchased it.
Why not add an incentive. You can choose to create a banner that will have an incentive, but specific that it’s only for today. That way you can create urgency, and only offer the discount to the people most likely to use it.
You can let PureClarity handle ‘buy again’ strategies with AI Recommenders or you can setup a Campaign to encourage your visitors to buy a specific consumable product after a certain period when they come back to your site. This is a very useful technique in increasing your increase order value..
Interested in learning more? Get in touch and we’ll schedule a demo for a time that suits you. We’ll show you exactly how PureClarity works its magic, and you can ask all the burning questions you have about personalization.
From exploring new technologies to try and create a more tailored online shopping experience through to building customer and brand loyalty she has delivered growth targets in all her roles to date.
Jo, as well as loving her morning coffee, has a strong belief that data has become the new business currency and the more insight companies have into their customers behaviour the more they can tailor their marketing and eCommerce strategies to enable growth.