How to increase your Average Order Value and make more sales
If you’re an ecommerce business owner, you know how important it is to make sales. But it’s also important to focus on increasing your average order value (AOV) so you can make more money on each sale. By understanding your customers’ buying habits and optimizing the checkout process, you can significantly boost the AOV of each transaction, resulting in more sales and higher profits! Let’s take a look at how you can do this, with 3 tips from a marketing coach.
1. Understand Your Customers’ Buying Habits
The first step in increasing your AOV is to understand your customers’ buying habits.
The better you understand who your customers are and what they want, the better equipped you will be to create a shopping experience that caters directly to them. For example, if most of your customers are college students looking for affordable clothing options, try offering discounts or bundled products to make their purchases both easier and more cost-effective.
Knowing who your customers are will help you craft an efficient marketing strategy that targets their needs.
2. Optimize Your Checkout Process
Once you have identified who your target audience is, it’s time to optimize the checkout process so that customers can easily complete their purchase with minimal effort.
Make sure all payment options available are secure and easy to use; offer free shipping or discounts on multiple items; ensure customer service is readily available; and provide incentives such as loyalty programs or rewards points for repeat purchases.
All these steps will help make the purchasing process faster and smoother for customers, which results in increased AOV for you!
3. Offer Upsells & Cross-Sells
Another way to increase AOV is by offering upsells or cross-sells during the checkout process.
An upsell is when a customer upgrades from one product to another (e.g., from a basic model to a premium model). A cross-sell occurs when a customer adds related products (e.g., headphones or a case) alongside the item they originally intended to purchase.
Upselling and cross-selling can help increase AOV without putting too much pressure on buyers; after all, it's just a suggestion.
Time to increase your AOV
Increasing your average order value doesn’t have to be difficult – with some research into customer buying habits and optimization of the checkout process (like you’re doing right now!), your business can quickly see an uptick in profitability by making more money per sale. By understanding who your target audience is, facilitating a smooth checkout, and creating incentives such as discounts, free shipping offers, loyalty programs, upsells/cross-sells opportunities during checkout, you can make sure you online store remains competitive in the marketplace. Let’s go boost your profits!