So, you have been working hard to increase the number of conversion and total search traffic to your website and has finally nailed it for once and all. But what about the average order value? Are you making any effort to increase the average order value? Since the cost of production is increasing and profit limit is getting marginalized because of stiffening competition, you will find it really tough to sustain unless you see some significant changes in the amount of average order value. But what makes me sad is that this aspect of marketing is probably the most overlooked part that everyone wants to ignore.
Wondering why you should be chasing AOV (average order value)? Here are the reasons:
It is easier to increase the cash flow and it is not that much unpredictable. And as you know more cash, as I believe, can be equated to more business. Given the number of algo updates happening these days, it is safe to concentrate on increasing AOV rather than wasting your time and money focusing on increasing traffic from Google.
Increasing traffic is a complex affair and needs loads of planning and auxiliary costs but increasing AOV is not that complex. Sometimes, it just requires you to install a simple plugin or software to make it work.
So, I hope I have given you enough reasons to make you change your mind. So, here are the tips that you can incorporate in your marketing strategy to get your business through these tough times:
Bundles Pack: This is my favorite. Bundles offers are meant for those customers who are on the way to purchase some product from your store and you are offering them complementary products for discounted prices if they place that order at that instant. This is one of the finest and cleverest marketing move that can unsettle even the most strict shopper.
Let’s imagine a situation. You are shopping for baby food online and when you are heading for the Check out, you see a pop-up showing you some discount offers if you purchase some other peripherals at that instant. Make sure that offer is really good and believe me there are high chance that the customer will accept the offer. This is a Win-Win situation for both the customer and the retailer. Customers get the benefit of discounted price and as online marketers, you will be happy to know that your plan is actually working.
Free Delivery: This is another great marketing gimmick that can make people trick into buy more. However, this is a headache for the retailer to offer free delivery for all products regardless of the price. Offering free delivery of products upon buying product worth of certain amount can be a great option for all. Take thing this way. If you see that majority of customers are shopping products worth of $50 on an average and to get the products delivered to their home would cost you nearly $5. In that case, you can urge them to buy product worth $100 to be eligible to apply for the free delivery offer.
Donation: People are religious these days and for that reason, they do not mind if you are charging them a few pennies more just to denote that amount in a charitable organization. You can use this trick in your marketing mantra by promising to offer certain percentage of your profit to charity. It will be great if you can manage to show a breakdown of how much a person is paying for a product and how much is going to get noted, it will ooze out a positive vibe. It will inspire people to purchase more from your online store because they will have the good feeling that they are going to contribute to the charity indirectly.
Display It Clearly: rather than playing with the emotions of the customers (just kidding), you can tell them straight how much they are going to save if they buy certain amount. For say, you can offer flat discount of 10% on every purchase made and if they purchase two you can double the discount. This will definitely inspire shoppers to go on a shopping spree and you will see money pouring in from all sides.
Cash Back Offer: By offering some kind of cashback on their next purchase, you can increase average money spent on your online retail shop. You can be a bit specific on the order like this way – “Get 30% Discount On Any Purchase Above $100 On Your Next Purchase”. Now, this is going to have two fold benefits – first you are going to retain your customers and second, you are going egg on them to purchase at least a certain amount. What else you could have wished. You can offer extra discounts if they refer their friends.
Image Courtesy: Microsft