Alright, so your digital sales strategy is hitting most of your KPIs – traffic, conversation, etc, but for some odd reason, the checkout quantity of each of your online customers is not as high. Don’t worry, this is normal, and it happens to online stores everywhere. But now the question is: how do you change this? How do you increase the Average Order Value (AOV), and become one of the few companies that maximize the potential of their online business with a higher Average Order Value and greater annual profits?
In this post, we’ll take you through a few simple tactics to consider in order to increase your AOV and make the most out of your online store, closing the customer surplus gap in a big way, and adding to your business growth so that you’re staying ahead, always.
What is (AOV) Average Order Value?
Simply put, your AOV is how many products, on average, your customers are buying on your online store. The goal is to increase that average, while also giving your customers the impression that they’re spending more to their benefit. It’s not about raising the prices to increase annual profits, or about spending money to attract more customers, but helping your existing customers see the benefit of spending more than they usually do whenever they pay a visit to your store.
This is crucial to your business growth because let’s face it, while costs continue to soar as time goes on, your profits need to as well, otherwise, you’ll be left behind your competitors. But don’t worry, that’s why we’re here to help: there are always ways to stay at an advantage, and usually, it doesn’t require hard thinking, just minor tweaks, and considerations. With that said, let’s get into it.
1. Increase Sales with Cross-selling with Bundles
When someone rocks up on your site, chances are, they’re doing so with an intention to push those ‘add to cart’ and ‘check out’ buttons, meaning they arrive to shop and spend money. By applying bundle strategy in how you communicate your products to them during this process, tempting them with alternative and enticing offers and discounted bundles, your chances of increasing AOV have just improved dramatically. Some examples of what this looks like, include:
- Displaying alternative options along with the product that your customers have their eyes on.
- Adding related products to the product that your customers have selected, or have added to their cart. This could be pop-up ads on the side, a quick suggestion to complete that customer’s order.
- Providing the option to choose another product as an accessory to a complimentary product that your customer is considering buying.
Something to consider too is your price point: you don’t want to make your products overly priced and scare off potential buyers. Increasing your AOV is sometimes the right combination of effectively communicated products coupled with alternative products that are perfectly priced, and basically too good to resist.
2. Use Upselling to Increase AOV
We’ve mentioned price points, and how you don’t want to scare off potential customers by making a product too expensive. But ironically, up-selling is sometimes a great way to suggest a more expensive purchase, all while prompting customers to add a few extra items to their cart.
How you do this is, again, through effective communication: point out to your customers the benefits that come with an additional product that’s positioned together with the product your customer has already selected, and how complete their initial order will be should they consider adding that item to their cart. Depending on how you communicate this, offering a product that leans more on the expensive side and that gets added to a customer’s cart, will not only increase your AOV but also your overall annual profits in a significant way.
3. Take Advantage of Configurators
Up-selling and cross-selling methods drive greater AOV, are some of the most effective ways to increase sales if done right. How to do this right, is by adding configurators to your site. Visual Product Configurators are one of many Al-powered tools that have changed the game of digital commerce, making buying better for customers and more profitable for businesses of any kind. They’re today’s equivalent to in-store managers or clerks, and since we’re living in a digital world where online shopping has become the norm, configurators and other Al-powered tools have become must-haves if a company’s digital presence is to stand out.
To take advantage of the times, and to bolster sales and increase AOV, simply implement systems that help do all the heavy lifting on your store for you. With configurators on your team, existing products in your store are set to be tailored to any customer’s specifications. Users can now be guided to create a configured end-item product through product definition, rules, and calculations. The result will be a valid, highly configured product most customers won’t be able to resist buying. Don’t waste time and energy doing what AI can do for you. For example:
- 3D configurators give customers a more in-depth view of what they’re buying
- Configurators let customers turn your product into a personalized item that they didn’t know they needed
- Configurators guarantee an increase in AOV: customers come to buy for what they had initially been looking for but end up buying additional items as a result of configurators helping them realize the benefit of choosing complimentary products and accessories
The Fastest Way to Increase AOV
Now look, growing your business does not always need to be about reaching new people. Sometimes it’s about finding ways to squeeze greater value from existing customers, which is what AOV-focused strategies do. Don’t waste time, energy, and money on marketing but rather increase profits with sound implementations that encourage your customers to spend more when they visit your store. This is easy to do when you consider the power of AI. Here at Zoovu, our primary focus is delivering automated systems to maintain product content enrichment and customer satisfaction and provide increased revenue spikes through AOV.
There is no faster way to scale an online store than with the power of AI. Zoovu helps drive sales by offering the AI-powered product perfect for helping your business to operate at its best, bringing you passive income, passive gains, and passive success. To learn more about how to scale your business with software that’s designed to do the work for you, get in touch with us today.