6 Tips to Increase Your Order Value For Online Business
You’re likely to be like many entrepreneurs and constantly think about how you can make your business more profitable. Increase your order value is one of the most important steps to take if you have an online shop. This refers to the average dollar amount of products bought by a single user within a single action.
Your total revenue will rise if you increase the average order value. This assumes that you can keep the same number of transactions. This could increase customer loyalty and the value of every visitor to your site.
What steps can be taken to increase the average order value?
Introduce or raise the free shipping threshold
The easiest thing you can do is to increase or lower the shipping fee. Psychological studies have shown that we love free shipping. We are more willing to pay more for total shipping if it isn’t charged for. This means that offering shipping free of charge could encourage customers to spend more.
This effect is stronger if you set a minimum spending limit. If you offer free shipping on orders $35 and more and your customer has a cart containing $30 worth of products, they will likely find another product to replace the order.
Offer a discount (at a certain spending level)
You can also offer discounts to customers who reach certain levels of spending in your cart. You might offer customers $15 off if they spend $75 or more. Although it might reduce your profitability, customers will likely spend more overall, which is a win-win situation. You can also give your customers a gift card if they purchase a certain amount.
Customers can get a discount if they buy in bulk. Customers will be more inclined to purchase more if you lower the cost per unit of your products if they are sold in larger quantities.
Group products together in a bundle
Another popular tactic is to bundle products together. You might consider bundling five components with a common purpose together to reduce the price. People might buy one product from you if they are interested. However, this should only be done if it is financially feasible and convenient.
To make bundles more attractive, you can also use packaging strategies and display strategies. You can, for example, show customers a more expensive bundle and then show them the most valuable bundle. This will make it appear like a better deal.
Recommend similar or related products
Amazon’s clever recommendation engine is one of the key technological innovations that has made it so popular. It uses machine learning to recommend similar products to customers and prompt them to purchase more or return for another purchase. You don’t need to make your engine as powerful or extensive as Amazon’s. However, you can increase the average order value of your customers by recommending the best products. Encourage your customers to add a little more to their carts by recommending items that complement each other.
Establish a loyalty program
A loyalty or rewards program is a great way to keep customers coming back. These systems reward customers for shopping with you. They might earn points for every dollar spent or for every order placed. Eventually, they can cash these points in for greater rewards.
You could encourage people to shop more if you have a loyalty program that rewards them for reaching certain levels, such as $100 in one purchase. You can also encourage purchasing by hosting a giveaway or contest that rewards customers who have purchased recently.
Execute short-term sales
Everything on your website is 25% off for a limited time. This is a huge discount your most loyal fans will love to take advantage of. Your customers will feel incentivized by such low prices to buy more.
As you try these and other strategies, keep an eye on your average purchase value. Although you may not notice a dramatic increase in sales overnight, if you continue to adapt to your audience and push for a higher average order value you will eventually see the results you desire.