Being a store owner your dream will always be to increase your revenue by applying different strategies. Am I right? But many of you might think that gaining more customers can only take your graph of profit at the top. No, but it’s a misconception. Don’t get me wrong. Yes, getting more customers is great and without them, there will be no business. But at the same time, there are many other ways that you can use to increase the average order value of your eCommerce store. Before moving to the topic let’s have a look at the average order value.
What is average order value?
Average order value (AOV) is the amount that is spent by the customer when placing an order on your store. The average order value is calculated by dividing your store’s total revenue by the number of orders taken.
Benefits of increasing the average order value
By increasing the average order value automatically your revenue will also increase. The more you earn through each order the more growth you can see in your business.
Ways to increase the average order value of your Shopify store
1. The idea of giving free shipping, discounts, or gift cards
This is one of the easiest ways to increase your store’s average order value. You may know that every customer doesn’t want to pay the shipping charges. Even Amazon also applied this strategy by giving free shipping charges over $25 offer. Also, you can provide discounts or gift cards. This can make your customers attracted and will tend to purchase more from your store. Also, the increase in the number of customers will increase your average order value.
2. Create product bundles
Providing product bundle deals can affect your average order value. You can bunch related products giving customers more value for their buck. For example, if a customer comes to purchase a shirt then you can show them the product bundle which will be containing pants. You can apply this method to the best buy products. Test various product bundle campaigns and check which one is getting the best conversion rate for your Shopify store and apply them.
3. Provide the option of choosing date and time for delivery of orders to customers
Every customer likes the concept of getting an option to select their desired date and time for getting their orders delivered. But the main fact is that not everybody gives that option or they don’t get that option most of them while they are shopping. But no need to worry you can install Order Delivery Date app and allow your customers to choose their custom delivery date and time.
Also, you can manage it easily without any coding knowledge. By using it you can reduce 50% of cart abandonment and you can see a growth in your average order value and revenue.
4. Display cross-sell and up-sell items
A cross-sell is an item that a customer may like but it will be different from the item that they are looking for. For example, if a customer is looking for a saree, you can recommend them showing a pair of earrings. By showing this customer will be more likely to purchase them in combination. While an up-sell is when you encourage customers to buy more costly products. This strategy will help you to sell more products of the same type. And this works well for beauty products.
5. Start a customer loyalty program
By starting a customer loyalty program it will help you to build a strong relationship with your customers along with increasing the average order value of your eCommerce store. The loyalty program means offering discounts for repeat customers who come back again and again. By doing this you are building trust between them and chances of purchasing higher-value products may also increase than new customers.