Average Order Value(AOV)
It is defined as the average amount of money that consumers spend on those orders which they order from your eCommerce store. Moreover, it is a crucial aspect to learn and understand your customer behavior. In addition, you can further learn unique methods to significantly increase your products and sales based on Average order value.
Following is the list of benefits that would help you to increase your Average order value. It includes:
●Increasing revenue in a shorter amount of time.
●Grow your overall sales revenue.
●Enhance the speed with which you can recoup the expense of acquiring clients.
●Increasing your customers’ lifetime value.
Average Order Value Calculation
Following is the formula by which you can calculate your average order value. Check it:
Average Order Value = Sales Revenue (Total)/ Number of Orders
This formula would help you to calculate your Average Order Value in an efficient manner. Moreover, you will find an eCommerce platform that would help you to calculate it without facing any issues.
5 Best Ways to Increase Average Value Order
1. Offer Bulk Products
Bundle your products that go well together or are frequently sold together. Furthermore, customers who were only looking to buy a part of a set will be enticed to buy the entire set. And, this set could be more expensive. Eventually, it helps to raise your average order value.
Here’s the bonus tip:
You can also provide small discounts. And, it would be applicable if customers want to buy products in bulk. Moreover, customers may see the cost benefits of buying in bulk and add more items to their cart.
2. Free Gift Cards
A free present is something that everyone enjoys. Therefore, use this strategy for your business. Make sure you offer a free gift or a promo code with purchase. Moreover, this will persuade more individuals to click buy and purchase more items from you. Customers are more likely to buy from you again if you offer a store gift card or a promo code, especially if the offer has an expiration date.
3. Customer Loyalty Program
Loyalty programs can help you grow both your brand and your cash. Furthermore, according to a survey conducted by Smile.io, loyalty programs improve average order value by roughly 14% on average. Moreover, they not only encourage individuals to add extra to their orders but also aid in client retention.
4. Minimum Orders for free Shipping
The best way to attract customers to add more items to their carts is by offering free shipping. Also, make sure that you apply this offer only when customers surpass a specific amount. Here’s an example for you: Suppose if your customer’s order extends above $60, then you could provide free shipping.
Nevertheless, this strategy is followed by certain online sellers and it works wonders for them. Note that if you are adopting this strategy, then provide this display information throughout your online website so that customers become aware of it.
5. Provide Flexible Return Policy
It’s more crucial than ever to be as honest and flexible as possible with your customers. Moreover, creating a liberal return policy can help alleviate any concerns or reservations potential clients may have about purchasing from you. Moreover, it helps to build the trust and confidence of customers in your business.
Furthermore, it’s critical to properly display your return policy to your customers once you’ve set it.
Moreover, your purchase confirmation emails, social media accounts, and website banners are the most typical venues to include a return policy.
We hope this article helped you to understand the Average Value Order, calculation, and best ways to significantly increase your average value order.
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