How to increase Average Order Value

How to increase average order value with upsells and cross-sells

Increasing average order value is how growing ecommerce businesses are becoming market leaders. 2020 was online retail’s best year for decades, and even as the high street reopens, that growth doesn’t look to be slowing any time soon; the pandemic may well have created a permanent shift in consumer behaviour. In fact, there’ll be an estimated 2.14 billion online shoppers by the end of 2021, with ecommerce in the UK forecast to continue growing by 4.7% over the next four years. 

How to increase average order value does, though, remain a challenge for lots of online retailers, especially those selling big ticket items. It should be a key focus of any ecommerce strategy. If you neglect your AOV, you’ll need to spend on customer acquisition to grow your revenue, ultimately leaving you with a lower margin. 

Here are some of the ways you can increase your average order value and boost your bottom line using ecommerce personalisation software like PureClarity’s.

Cross-sells

Cross-sells are one of the most common routes to a higher AOV. If you keep an eye on what’s your customer’s browsing and what’s in their basket, you know what’s on their mind. So you can show them other, related products they might also be tempted to buy. 

If they’re about to order, say, a dining table, they’re likely in the market for some chairs too. Or if they’re looking at waterproof outdoor gear – how about a sturdy pair of boots?

Baby Boutique Cross Sell After

Step 1: Complete the look

This one’s well suited to fashion, lifestyle and homeware retailers.

  • If you can identify two or three items that work well together – a dress and some sandals, for example – you can then suggest second and third products you know your customer might be interested in as they’re viewing the first one.
  • ‘Complete the look’ pages don’t just have to be at the checkout, either; they also work well on product pages.

Here’s how that can look in practice. Harry Hall, a PureClarity client, are using AI product recommenders to up-sell and cross-sell.

 Step 2: Target returning visitors

This ‘increased average order value’ campaign targets visitors who’ve been on your site before. They’re already engaged with your brand, and they’ve shown you what makes them tick. That means you can optimise their customer experience by tailoring it precisely to their own wants and needs. 

Calzamoda Hompage With Personalisation

Machine learning, like PureClarity’s AI, makes this possible: 

  • You can segment your all customers into small groups based on their buyer personas and show each group a unique selection of products – items related to their recent browsing habits or purchases, for example – ensuring each individual is seeing the things they want to.
  • You could personalise their experience even further too – how about addressing them by name in a welcome banner on the homepage? Or, if they’re visiting on their birthday, making their day that bit more special with a surprise discount at checkout? That’s what intelligent ecommerce personalisation means in 2021, and it comes straight out of the Amazon playbook.

Incentives

Incentive Campaign After PC

We’re all human, and that means we’re all motivated by incentive in one form or another. That’s why incentives can be exactly the nudge a hesitant shopper needs to take the plunge – whether it’s a discount, a freebie, faster delivery, or something else. 

  • Offering free delivery may be the most effective one to increase AOV in 2021; the majority of customers in the UK say it ‘greatly impacts whether or not they buy from a brand’.
  • Use incentives campaigns, especially freebies, sparingly though – after all, if we’re getting something special all the time, soon we’ll get used to it! 
Zest_email_Order Confirmation Email Offer with PureClarity

Step 3: The top-up campaign

Top-up campaigns aim to persuade customers to spend that little bit more. A 10% higher AOV across, perhaps, a third of your regular customers will quickly add up. 

EXAMPLE: If they spend £100, they’ll get 10% off.You may not, of course, want to offer discounts to people you know will spend over £100 anyway. That’s where technology comes in. Lots of retailers are now using AI  to identify and segment returning, regularly high-spending customers – so they don’t see the offer code. The best place to run a top-up campaign is at checkout; ideally, you want to encourage the customer to spend more just as they’re committing to a purchase. 

Widdop Personalization

Step 4: Promote special events

Celebrating the year’s big occasions makes us feel good. 

  • Capitalise on that sentiment by associating your products with the event of the day. It might be one we all share, like Mother’s Day, or it might be one you’ve created yourself. Either way, ‘special event’ promotions give your customers a reason to spend. 

EXAMPLE: Footwear week: customers spending over £300 get a free pair of trainers.

  • On some special events, it’s important to target specific customer groups. Campaigns launched on the most widely celebrated events can be targeted at everybody. But if you’re promoting an event based on, for example, a specific product like footwear, you can be most effective by targeting ‘Footwear Week’ to those customers who recently bought trainers, and other customer groups with a different personalised promotion.
  • You could highlight this one with a homepage banner or microbanner underneath, or alternatively, introduce it on the basket page.

Upselling

Upsell Campaign

This kind of campaign aims to nudge your shoppers into treating themselves to a higher priced product than the one they’re looking for. The target customer segment for this campaign is those who buy regularly from you.

Step 5: Promote the luxury range

Just as Amazon recommends higher value products than the ones you’ve been looking at, here you’re aiming to recommend your biggest ticket purchases.

  • By tracking your customers’ product views, you can see who’s interested in the items which have a high value alternative.
  • Perhaps somebody’s viewing a mid range point-and-shoot camera, and you also stock high-end DSLRs. Or maybe they’re checking out a £40 pair of jeans, but you sell Levi’s too.

You can then target them with a Luxury campaign, showing them that higher value alternative – and perhaps even sweetening the deal with a discount incentive to make the purchase, or adding a sense of urgency with a ‘deal ends today’ offer.

Discover how Harry Hall have increased their online conversion by 10% and consistently increased their basket value through the use of AI product recommender upsells and cross-sells. 

Time to increase your AOV?

PureClarity is how. Our intelligent ecommerce personalisation software has helped dozens of independent businesses like yours to increase their average order value, reduce their spend on customer acquisition and grow their bottom line.

Get in touch to find out more.