How to to Increase Average Order Value (Infographic)
Finding customers is expensive - in fact it can cost 5 times more to acquire a customer than to sell to an existing customer - so once you have a customer you'll want to sell as much as you can. Here are 5 actions you can start today to boost your average order value.
1 Set a Free Shipping Threshold
According to VWO.com setting a Free Shipping threshold (like FREE Shipping when you spend over $50) can help boost your Average Order Value.
TIP: A/B Test Free Shipping Threshold vs No Free Shipping abd measure the difference in Average Order Value (remember to strip out the Shipping Costs to consider only the goods value).
2 Offer Cashback
According to KISSmetrics offering Cashback on purchases (like "Get a Free $10 Voucher when you spend $40" or "Get a Free $10 Voucher when you Refer a Friend") can increase average order value.
TIP: YOU can boost the leverage by Partnering with a related products, so the Vouchers can be used at other destinations.
3 Personalise the Experience
According to UpshotCommerce.com, "Shoppers usually respond well when presented with products that meet their needs". And the more relevant your product offers, the more likely customers will buy more - again boosting your average order value.
TIP: It doesn't need to be difficult or expensive to personalise personalize the overall shopping experience of your site. Here are some tools to help you Shopping Experience
4 Offer Product Bundles
According to TheEcommerceExpert.com if you can create combinations of relted products that when bought separately would cost more, you will increase your average order value. You've probably seen this on Amazon.com
EXAMPLE: suppose you sell Apple ipods. You have an iPhone for $149.95 and a car adapter priced at $54.95. Bought separately these items cost total of $204.90.
If you created a bundled product with BOTH items for just $175, you would increase your order value from what could have been just $149.95 to a better $175.
5 Product Recommendations
According to Omniconvert.com, cross-selling recommended (and relevant) products is ideal for any e-commerce store and can improve the average order value.
TIP: Make sure the suggestions are relevant. A person buying a suit will need a tie, but not running shoes.
BONUS - Infographic: Here's an infographic from the guys at QuickSprout, showing the benefits of upselling and cross-selling, with more tips for getting more value from your customers. Enjoy!
Infographic courtesy of QuickSprout
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