I don’t care what you are selling online, there are three basic ways in which you can increase top line revenue and they all need to go up!
You need to increase:
New Customer Acquisition
Average Order Value
Customer Lifetime Value
Today, I’m going to walk you through 5 ways you can increase the average order value on your store.
Upselling
The single best way to increase average order value is to upsell customers on products. I have done this on product pages; I have done this directly in slide or modal carts; I have done this on post-purchase pages.
Regardless of where you decide to upsell, the important factor is to customize these product upsells based not only on the product the customer is looking at or purchasing, but also based on their purchase history.
If you’re on Shopify, One Click Upsell is a great option for you.
One Click Upsell
Gift Cards:
42% of customers will spend more than the value of the gift card. (paymentsdive.com)
Gift cards are a great built-in way to ensure that customers end up spending more on your store. AKA - upping their average order value.
What’s more, more than 51% of Americans leave value on gift cards. (cbsnews.com) Meaning you will get additional breakage revenue- or revenue gained from unredeemed gift cards. Put simply, free money.
Complimentary Products:
Based on experience, if you have a successful online store, you have some existing product that your customers love. And typically that is one, or possibly two, different products. To increase AOV, you need to start creating complimentary products.
For example, if you are selling watches online, start selling watch rolls or watch travel cases. If you sell sneakers, start selling socks.
Power this tactic up with upselling! When you have a complimentary product, you can start upselling to increase average order value.
Rewards Program:
69% of consumers say choice of retailer is influenced by where they can earn customer loyalty/rewards programs. (invespcro.com)
The most important aspect of implementing a rewards program is to make it 100% clear on how the program works. For example, “Spend $100 get 100 points!” Rewards programs not only increase average order value, but customer lifetime value.
Smile.io automatically integrates with Shopify making rewards programs quick and easy to set up.
Personalization/Automations:
What happens when a new customer visits your store and makes their initial purchase? How many emails do they receive? How many SMS?
How about someone who makes 3 purchases in 90 days, but then doesn’t make another purchase?
Automations are the single best way to ensure customers are coming back. The best part is you only need to spend the initial time to set these up, and then let them run automatically.
Be sure to implement automations so that you not only increase your repurchase rate, but average order value, automatically.
Shopify Flow is a great native app that allows you to tag customers. Additionally, you can use an all-in-one platform like Klaviyo.
And that’s it! Those are the 5 ways I recommend you increase average order value on your site!
See you next week.
As always, you can watch my video on this very topic below:
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