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How to Increase the Average Order Value (AOV)
Ideas on how to get customers to spend more on your ecommerce site. Check out how some of the ecomm sites are able to drive up AOV.
Increasing the AOV can become a major differentiator between business success and failure.
Ideas on how to get customers to spend more on your ecommerce site. Check out how some of the ecomm sites are able to drive up AOV.
Increasing the AOV can become a major differentiator between business success and failure.
1. Optimise Free Shipping Threshold
Offer free shipping for orders that are at least 30% higher than the current AOV. Once you have configured the amount above which shipping is free, communicate the offer to users via email or notification campaign.
Offer free shipping for orders that are at least 30% higher than the current AOV. Once you have configured the amount above which shipping is free, communicate the offer to users via email or notification campaign.
@FableStreet offers free shipping to international buyers for purchase above Rs. 20,000.
Free shipping is a big motivator in the Indian context to drive more usage. Keep in mind that free shipping is everywhere and is standard fare during the sale season.
Free shipping is a big motivator in the Indian context to drive more usage. Keep in mind that free shipping is everywhere and is standard fare during the sale season.
2. Bundling and Bulk Deals
Create bundles that are logical buys and offer a small discount. Think of what items work well together. Bulk deals work similarly. Create a 2X or 3X bundle of items that will be used frequently by the buyer.
Create bundles that are logical buys and offer a small discount. Think of what items work well together. Bulk deals work similarly. Create a 2X or 3X bundle of items that will be used frequently by the buyer.
@HeeliumOfficial, a newly minted D2C brand selling apparel made from bamboo fibre offers a small discount on bulk buys
At @HelloMilkbasket Milkbasket bundling helps in driving up the AOV, as grocery buying is considered a chore by many. It helps users to order items in bulk for the week addressing their pain of creating manual lists to reorder again.
3. Cross-sell And Up-sell
This needs to be enabled using “Similar Products,”, “Frequently Bought Together,” or “You May Also Like” feature on the website. This needs a data layer that the analytics team can work on to create cross sell suggestions for the user.
This needs to be enabled using “Similar Products,”, “Frequently Bought Together,” or “You May Also Like” feature on the website. This needs a data layer that the analytics team can work on to create cross sell suggestions for the user.
Zara does an excellent job to complete the look and cross sell other items.
Upselling involves strategic positioning of items that are a better version of the item that the customer may be interested in
@HPIndia shows different versions of the products with and additional warranty bundled with the more expensive version.
@HPIndia shows different versions of the products with and additional warranty bundled with the more expensive version.
4. Gift Cards on Spend Threshold
Create an incentive program which offers a user discount on his next purchase for creating a minimum order basket in the current purchase. Price the gift card in such a way that it is not a heavy discount and does not deplete margins considerably
Create an incentive program which offers a user discount on his next purchase for creating a minimum order basket in the current purchase. Price the gift card in such a way that it is not a heavy discount and does not deplete margins considerably
@AmexIndia offers travel vouchers if a user spends Rs. 1.9 Lakhs in a year. This is attractive for the user who has crossed a lakh in spend to use the card more and avail the voucher.
5. Loyalty Program
Loyalty programs should not be seen as a short-term strategy, many companies get the loyalty program wrong by not designing it right. The user needs to get motivated to purchase more once he subscribes to the loyalty program.
Loyalty programs should not be seen as a short-term strategy, many companies get the loyalty program wrong by not designing it right. The user needs to get motivated to purchase more once he subscribes to the loyalty program.
Airlines loyalty programs are a game-changer here. Many customers end up compromising on flight times just so that they can fly with the airline whose loyalty program they have subscribed to.
6. Limited Time Deals
Limited-time deals are a tactic based on the scarcity principle. The more difficult it is to obtain a product, the more valuable it becomes. Adding an expiration date to a minimum order size offer adds a sense of urgency and pushes users into action.
Limited-time deals are a tactic based on the scarcity principle. The more difficult it is to obtain a product, the more valuable it becomes. Adding an expiration date to a minimum order size offer adds a sense of urgency and pushes users into action.
@KamaAyurveda actively communicates with users to drive them on the website for limited time offers. A complimentary hair conditioner is auto added to the cart once the order value exceeds Rs. 5000.
7. Add on Low Cost Items
Low cost add-on items displayed at the right place enable users to give in to their impulse buying behaviour.
Adding a couple of low cost items can typically increase the overall purchase basket size by 10%
Low cost add-on items displayed at the right place enable users to give in to their impulse buying behaviour.
Adding a couple of low cost items can typically increase the overall purchase basket size by 10%
Milkbasket shows impulse purchases like chocolates and chips on the order basket page similar to the way there are low cost items kept at arm’s length in a supermarket checkout line.
8. Financing
Adjusting the payment terms of your pricing can be a brilliant way to close large ticket deals. Zero cost EMIs can enable users to consider purchasing a more expensive item in high cost items categories.
Adjusting the payment terms of your pricing can be a brilliant way to close large ticket deals. Zero cost EMIs can enable users to consider purchasing a more expensive item in high cost items categories.
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