#201: 8 Strategies to Increase Your Average Order Value (Works for Any Business!)

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In This Episode

Whether you’re growing an eCommerce store or want to get more people to sign up for a B2B service (ahem, like digital marketing), average order value is one of the most important metrics for any business. How much each customer spends defines your profitability and, to a large extent, your marketing budget.

What Is Average Order Value?

As the name suggests, average order value is the average amount of money customers spend when shopping in your store or paying for your services. Your average order value is a critical metric for measuring your digital marketing ROI and helps you determine whether you’re maximising your customers’ potential value.

A high average order value puts you in a better position to offset your customer acquisition costs, grow profits and increase your marketing budget to generate more leads.

In other words, high average order value = great.

The challenge, however, is figuring out how to grow your average order value without increasing your marketing spend.

Join us as Head Ninja Tim breaks down eight tried and proven strategies to increase average order value, complete with real-world examples for each.

Average Order Value Strategy #1 Product Bundling

As marketers, one of our main goals is to remove friction and make the buyer’s journey as quick and smooth as possible. Product bundling is a great way to help your customers by making it very easy for them to make a purchase decision while increasing your average order value.

Catipilla Product BundleImage via Catipilla

In the example above, Catipilla, an online provider of high-end cat furniture, offers a range of bundles to help buyers decide what combination of products to get.

Average Order Value Strategy #2 Cross-Selling

Cross-selling refers to pushing products related to an item the customer is buying or already owns. In eCommerce sites, you’ll often see a list of products to complement your main purchase when you’re about to check out.

Here’s an example from Currys — notice how the store tries to cross-sell antivirus software for the laptop purchase.

Currys Cross-SellImage via Currys

The goal of cross-selling is to get customers to make impulse decisions through product recommendations that complement their main purchase. So, the key here is relevance.

Average Order Value Strategy #3 Something Free When You Buy X

This strategy often involves getting customers to increase their order value in exchange for getting a better deal overall on their purchase.

Boots Average Order ValueImage via Boots

Here’s an example from Boots, where three pieces of No7 eye cream is going for the price of two. Boots knows that this is a deal bargain hunters can’t resist. Sure, customers will have to pay more upfront, but they end up saving money in the long run. This strategy is also great for moving inventory, keeping your warehouse costs low.

Check Out the Episode to Learn More

These are the first three tips covered in this guide. Go through the other five by watching the video or listening to the podcast episode!

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00:00 — Introduction
03:58 — Average Order Value (AOV) Examples
07:45 — Strategies for Increasing Your Average Order Value
07:54 — AOV Strategy #1 Product Bundles
09:56 — AOV Strategy #2 Cross-Selling
11:14 — AOV Strategy #3 Something Free When You Buy X
11:54 — AOV Strategy #4 Threshold Free Shipping or Free Gifts
13:42 — AOV Strategy #5 Loyalty Programme
15:44 — AOV Strategy #6 Upsell at Checkout
16:13 — Quick Explainer on Subscriptions
19:19 — AOV Strategy #7 Premium Options
22:16 — AOV Strategy #8 Memberships
23:49 — Bringing it All Together

Related Links

Websites featured in the episode:

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