Every eCommerce owner’s dream is to attract more customers to their Shopify store. But having more customers doesn’t mean more revenue, you need to increase average order value.
What? Doesn’t having many customers boost your sales and revenue?
Yes, they do. But remember, if there are too many customers who spend very little on their purchase it will impact your profitability.
That is why it is essential to increase the average order value of your Shopify store, so you can increase your revenue even with minimal customers.
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What is the Average Order Value?
Shopify store average Order Value is a measurement of average dollars a customer spent every time they made a purchase.
Figuring out your Shopify store average order value can help you track the purchasing habits of customers and their preferences.
The interesting aspect of the Shopify store average order value is that it doesn’t cost you much for boosting it, unlike customer retention and increasing your traffic.
How to get more orders and increase Average order value?
Ecommerce store’s average order value is crucial if you want to earn more profits from your store even with lesser customers than your competitors.
All you have to do is make sure that the customers fill more items into their carts on every orders.
That’s how to increase average order value of your Shopify store. But to motivate the customers to add more items to their during their current order, you need to employ a few tactics in your store.
So, here are some of the effective ways that will show you how to motivate customers to add more items to their carts and eventually increase Average order value of your Shopify store.
Set a purchase limit to earn discounts
Discounts are something that would grab a customer’s attention right away, but now you’re going to use those discounts to increase aov of your Shopify store.
How can I do that?
Simple, By fixing a Threshold!
If you’re a prominent eCommerce customer, you might’ve come across this criteria saying ‘purchase more than 100$ to earn the discount’
The 100$ limit is the threshold, as the customer will already be enticed with the discount, so to earn it, all he/she has to do is purchase more than 100$ and get the discount.
If he crosses the threshold and purchases more than 100$ then he’ll earn his discount and simultaneously increase average order value of your store.
Reports say that lower shipping rates always churn in better conversion rates.
So, offering free shipping when a customer crosses the discount threshold is a great way to increase average order value.
But you must be careful with the price, if the price is too high, the customers will bounce, If the threshold price is too low, you’ll lose the profit.
So, you must decide the right price threshold for this tactic to work. Many stores have done this successfully, it’s time you do it too.
Acknowledge your loyal customers with rewards
The goal here is to increase average order value, which means you must motivate the customers to purchase more.
And the right type of customers, to begin with, are your loyal customers. Because studies show that loyal customers spend more than new customers.
How to encourage my loyal customers to purchase more?
Well, initiate a loyalty program in your store.
If years of eCommerce shopping have taught us something then it is the fact that customers always expect something in return for their profound loyalty and that is why you need to run a loyalty program in your store.
As a store owner, it will help you to build a better relationship with your customers. The loyalty program can also increase your customer retention rate and boost your WOM marketing.
But how does a loyalty program increase Average order value?
Well, you can offer special incentives to frequent heavy spenders. You will apply new levels to this program, increasing the rewards as the amount paid in order increases.
Likewise, you can also run a Referral program in your store an encourage your loyal customers to bring in thier friends to your store and increase your average order value simultaneously.
Reward First time customers
A clinical way to increase average order value of your Shopify store is by acknowledging the first time customers and offering them discounts to increase the value of your cart.
New customers will always be looking for a discount to fall from the sky, in that case, you can offer a first time discount to customers if they purchase multiple products. By doing this, the customers are not the only ones benefitting with the discount, the store owner gets to increase average order value of his store too.
If your new customers purchase multiple products and earn a discount for that, chances are high that they might return to your store again to purchase even more, thus becoming your loyal customers.
If your store is a new one, then all your customers will be your first orders, so offering discounts like these can reap you more benefits is sales and increase average order value greatly for your store.
Upsell and Cross-Sell your products
So, why are we here? To figure out how to increase orders and increase average order value of your stores, right?
Increasing average order value means adding more items to the cart. And how to persuade customers to add more items to their cart?
Simple, by cross-selling the products.
Yes, every time customers add a product to their cart show them a similar product that can go with that product.
You might’ve come across the ‘Frequently bought together’ or ‘Products related to this item’ section on every product page, That’s cross-selling.
When your customer adds a laptop to his cart, you can recommend a laptop skin or a laptop accessory that goes well with the product.
This will motivate the customer to add the complementary product to his cart thus increasing average order value of your store.
There is also another similar way to increase average order value, it is called upselling.
Cross-selling is where you motivate the customer to add similar or complementary items to their cart. Whereas upselling means motivating them to purchase a more expensive item.
This means giving consumers the ability to purchase a better quality edition of the same products. When they have selected a product, you can ask them to improve and purchase a better one.
Even though the product is expensive, customers will go for it thus increasing the value of the cart and increasing average order value of store.
Sometimes a customer might abandon their cart due to a bad deal, but you can recover them by upselling using cart recovery emails.
Recovering your carts can also increase your Average order value greatly.
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Offer limited-time discounts
Time is the most crucial thing, it can impact your sales in both positive and negative ways.
On the other hand, discounts can influence your sales greatly in a positive way and it can also help you increase Average order value.
But a discount without a time limit is obsolete, there is no use for it customer, Customer won’t be enticed enough to purchase if the discounts last for weeks.
That’s why you must put a time-limit to the discounts you offer to rush the customers to make a decision.
You would’ve come across deals like these Black Friday deals, daily deals, and more. These are time-sensitive deals.
The customer will be excited to see these discounts but the real catch here is the time. They will hurry to purchase it because they know that the discount will be available only for a certain period.
This creates a FOMO(Fear of Missing out), so the customer will rush to purchase the product before the time runs out thus increasing Average order value.
A brilliant way is to use this tactic on expensive products so you can increase Average order value.
When you think about it, it is also a type of psychological trigger. Many stores use them to boost sales and revenue.
Create a Sense of Scarcity
If you are wondering how to get more orders then follow one of the most common tactics used by almost every eCommerce store in the world is showing a scarcity of products.
This is used to encourage the customer to add the product to their cart before it is sold out.
But how can it increase Average order value?
You see, scarcity is always used for expensive products, stores don’t display scarcity for products with low price, no one would buy it.
But by displaying scarcity for expensive products, stores create a FOMO(Fear of missing out) among customers. So, they rush to the store to purchase an expensive product before it is too late.
This is how you can increase Average order value of our Shopify store using scarcity.
You can use plugins that have a countdown timer or a popup feature to show the time is running out for this deal. This will surely induce fear in the minds of customers.
Like we said before, Shopify store average order value is the dollar spent on each purchase.
So using scarcity for products at a great price can really increase AOV of your store.
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If you want your Shopify store to be successful then you must increase average order value of your store. That’s why we charted out to find out the clever ways on how to get more orders and increase average order value of your Shopify store and crafted this article to let you guys know that secret too.
Follow these tactics and increase the value of every orders in your store and boost your revenue greatly.
To increase your average order value on Shopify, you can offer bundle deals, upsell related products, and set up minimum purchase thresholds for free shipping or discounts. You can also personalize product recommendations and implement a loyalty program to incentivize customers to make larger purchases.
To increase average order value, businesses can offer upsells and cross-sells to encourage customers to purchase additional items or offer incentives for customers to spend more, such as free shipping for orders over a certain amount.
To increase the average order value of ecommerce, businesses can use strategies like product bundling, offering discounts for larger purchases, personalized product recommendations, and creating loyalty programs to incentivize repeat purchases.
The main drivers of average order value are upselling and cross-selling, as well as offering discounts for larger purchases or bundling products together. Additionally, providing excellent customer service and personalized product recommendations can also lead to increased order value.
The factors that influence the average order value include pricing strategies, the quality of the products offered, the ease of the purchasing process, the effectiveness of upselling and cross-selling techniques, and the level of customer engagement and satisfaction. Additionally, external factors such as economic conditions and competition can also have an impact.