Average Order Value in Ecommerce and 10 Effective Ways To Boost Them

Any ecommerce business that is done online needs some metrics to calculate the success rate. One of the most powerful metrics is Average order value.

Let us look in detail at the average order value in this article and 10 effective ways to boost the same.

What is Average Order Value?

Average order value (AOV) is one of the important metrics to calculate, and track your business. It helps in tracking the average amount that you spend each time when a customer places an order. The orders are usually done either on your social media platforms or on your website.

It can be calculated by dividing the total revenue by that the number of orders you have received from various places.

How to calculate Average Order Value?

AOV can be beneficial for your products, channels or any region. You can grow your business with this metric as this will be very much helpful.

You can also calculate the average order value in Google Analytics with additional benefits.

Factors of Average Order Value

There are indeed many things and factors that affect average order value marketing. Let us look at that one by one.

1. Pricing

It is common for any business that one product may sell higher in place, which will be providing the best product at a lower cost or vice versa. Whatever the situation might be the fact to be noted here is the average order value.

understand if the price is low then the average order value will be low, but if it is high providing the best products at a higher rate that it might have a higher average order value.

2. Marketing Strategy

Another important factor that affects AOV is the marketing strategy. It is crucial to know how to improve the average order value marketing. And for that, you have to focus on,

• Offers
• Promotions
• Discounts
• Incentives

All these things will improve and increase the AOV as it will encourage the customers to spend more. This marketing strategy will work for sure as the customers get attracted to a certain product and buy them.

3. Customer Behaviour

Customer behaviour is much more important than we think. Irrespective of the business you do it is important to know about the customer. Collect the customer’s data and analytics and then understand their needs and pain points.

The success of any business lies in providing solutions to the customer’s pain points. Like, look out for what the customer gets on repeatedly then try providing the same discounts, and offers and promote the same. By doing so you can repeat the customers.

Average Order Value and 10 Ways to Boost Them

Let us look at the 10 best ways to boos your AOV.

Offer Bundles or Package

Grouping products together can encourage customers to buy more than they originally intended. If you sell products on offer by giving them in combo or package it will automatically boost your AOV.

Upsell and Cross-Sell

Suggest complementary or upgraded products to customers during the checkout process. It is one of the finest ways to boost the AOV as it shows the needs and also buy options which the customer might be thinking to buy.

Implement a Loyalty Program

Reward customers for spending more by offering discounts or exclusive perks. This boosts their confidence that they have done right by choosing the loyalty program. So don’t make them to worry about it or give a chance to make fuss.

Set Minimum Order Values

Encourage customers to spend more by offering free shipping or other incentives when they reach a certain spending threshold. Yes, you can offer free shipping and other coupons offers when the customer makes an order over certain amount. This helps them to buy more even when they need to buy less.

Offer Discounts for Bulk Orders

Encourage customers to buy in larger quantities by offering discounts for bulk purchases. This works like a charm always. Offer them bulk offers on bulk purchasing this will motivate them to buy more.

Personalize Recommendations

Use data to personalize product recommendations and offer relevant products to customers. The data you cover about your customers can be used in shopping recommendations and this will for sure boost your sales.

Use Urgency Tactics

Encourage customers to act quickly by offering limited-time offers or displaying low stock levels.

Provide Financing Options

Offer financing options to customers who may not be able to afford larger purchases upfront.

Optimize Product Pages

Ensure product pages are optimized with clear pricing, descriptions, and images to encourage customers to buy.

Provide Excellent Customer Service

Offer exceptional customer service to encourage repeat business and positive reviews, which can lead to increased order values

Wrapping Up

Thus these are the 10 Effective Ways to Boost Your Average Order Value. Hope you get to know its, definition, and the factors that affect AOV. It is important to know how to calculate it and use it for your business. Don’t forget to add this metric for your business and mould your business in a way that reaches more heights and gets you more revenue.

If you find this article interesting like it and share it with your friends who might find this article helpful. And don’t forget to subscribe and follow Ecom News for getting more details on ecommerce.

FAQ