You want your shoppers to love you for what you sell, not because you discount. They aren’t sustainable because discounting too often will cause shoppers to expect it and never buy at full price. The best coupon strategy to maximize AOV will push customers to spend more but also make them feel like they are getting a special deal as well.Ĭoupons can temporarily increase average order value, but they’re not the best long term strategy.Īlthough coupons are a great way to temporarily increase AOV, they’re not the best long term strategy. If you sell luxury goods, a discount won’t align with your brand strategy. This will motivate customers to spend more than they would’ve without the discount to ensure they can take advantage of the savings.Ĭoupons can be effective as long as they match what your brand and store are trying to achieve. Coupons that increase AOV are often used in a similar fashion to free shipping offers – if the customer spends over a certain threshold they will receive a discount. Use Coupons with a ThresholdĬoupons are another method to increase your average order size, but they must be approached with caution. This also makes it more likely that customers will find a product they like, which will lead to more repeat purchases. A sampler pack lets them try multiple products with one purchase. Sampler packs are especially effective for food and beverage companies since shoppers often look for both savings and variety. This offers both additional savings and convenience - something their customers are always looking for.ĭAVIDsTEA’s sampler pack is another good example of a bundle. They make their bundles even more appealing by allowing you to customize your bundle with a cell phone plan. With this strategy, Bell is able to increase AOV by ensuring that more customers are also purchasing TV services instead of switching to Netflix. Providing a starter bundle saves your customer time, research, and money while at the same time increasing your order value.īell’s bundles all include TV and internet, likely due to heavy competition from Netflix who is challenging traditional TV services. You can make it easy for them by including everything they need in one convenient bundle. When someone decides they are going to get into a new hobby or sport they often don’t know everything they need. Starter bundles have to be the most effective type of bundled product. Additionally, it reduces the risk that customers will abandon your site during their search for multiple products. It makes it very convenient for a customer to pick up everything they were looking for with the click of a button. Product bundling is combining multiple products into a single item on your site. You provide them with additional value and they provide you with additional order value. Similar products can be paired together to encourage additional spending.Ĭross-sells are a great way to boost average order size because they remind your customer of products they may have forgotten or didn’t realize they needed. Setting a free shipping threshold can help convert some of those shoppers into paying customers. According to UPS, 61% of shoppers abandon their cart if they can’t get free shipping. This is one of the easiest ways to increase average order value, set a threshold that a customer must spend in order to receive free shipping. Now that you’re an expert on calculating average order value, here are 5 proven ways to increase it. Remember to subtract expenses and cost of goods sold for a better representation of your current average order value. This is the simplest way to calculate average order value, but it doesn’t provide the full picture. Knowing your current average order value is vital to setting goals and evaluating progress. At first this seems very logical and intuitive: just get customers to buy more and you will make more money! However, do you actually know how to do it? More importantly, do you even know how to calculate your average order value? This post will cover both of those topics! How Do I Calculate Average Order Value?īefore learning how to boost your average order value, it is very helpful to understand how to calculate it. Increasing your customer’s average order value will increase your ecommerce store’s profitability.
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