When it comes to growing your bottom line, increasing average order value (AOV) is a key way to move the needle. AOV calculates the average dollar amount spent every time a customer places an order.
To calculate AOV, you can use the formula: Total Revenue/Number of Orders.
Increasing AOV is an important tactic to boost revenue and customer lifetime value (CLV) without increasing customer acquisition costs.
Consider the following tactics to increase eCommerce AOV:
- Implement product bundling
Product bundling is a tactic where multiple products are packaged together as a single unit, typically at a discounted price. This can include complementary items (e.g. makeup palette and brushes) or curated sets (e.g. a scrapbooking kit with paper, stickers, and pens). Product bundles increase cart size while still giving customers a greater value. Highlighting top-rated items in your bundles is another way to make the most out of customer feedback and drive sales. - Incorporate upselling and cross-selling
Helpful tactics similar to product bundling are upselling and cross-selling. Upselling is a practice to encourage customers to purchase a higher-end, more expensive version of an item (e.g. a pack of three items rather than one). Cross-selling suggests related or complementary items (e.g. adding a pack of socks to an order of new sneakers). Both options are good ways to increase cart sizes without additional lift. - Offer free shipping thresholds
A popular and effective tactic to increase AOV is with free shipping thresholds. For example, you may offer customers free shipping if they spend $50 or more on one order to encourage them to add items to their cart to meet the minimum. 81% of Americans are willing to spend more to meet a free shipping threshold. Retailers can leverage this fact by offering thresholds to boost AOV in return for free shipping. - Build trust with reviews
49% of customers trust product reviews as much as they trust recommendations from their loved ones. Incorporating ratings and reviews on your site improves credibility and provides social proof to encourage customers on the fence to make a purchase. If you don’t have ratings and reviews on your site, or if your platform doesn’t include the functionality you need, request a demo of Revere today. - Highlight top-rated products
When you collect a rave review, the process doesn’t stop there. Get the most mileage out of your reviews by highlighting top-rated products. Add badges like “top-rated” to encourage other shoppers to purchase the item. And promote top-rated products and their reviews in your marketing campaigns to generate buzz. - Display UGC on product pages
Another way to maximize the value of your UGC is to highlight it on your product detail pages. For example, when customers upload high-quality photos or videos of them using a product, display them prominently on the PDP to help other shoppers envision the product in their own lives.
Key Takeaways
Increasing AOV is an important strategy to boost overall commerce revenue. Leverage UGC, incorporate strategic selling techniques, and build trust with your customers to boost cart sizes. Ready to start boosting your AOV? Request a demo of Revere today.
