Getting new clients is probably the first thing that comes to mind when you’re trying to think of ways to increase your revenue, if you’re like most e-commerce business owners. Despite being a solid strategy, it comes at a cost because of higher marketing costs.
Fortunately, raising your Average Order Value (AOV) is a more economical method of expanding your sales while still depending on your current clientele. Getting more value out of your current clientele will save you five times as much money as attracting new ones to your store. However, where do you begin? Continue reading to learn four ways to increase your Shopify AOV.
Free Shipping Thresholds
For consumers, free shipping is appealing. Free shipping is difficult for many dropshippers, though, as it can negatively affect store income. A decent way to prevent financial loss and boost AOV is to provide free shipping for purchases above a certain level. Customers are sometimes driven to add more products to their cart when they discover they can earn free delivery by making a specific purchase.
For instance, if a consumer’s cart has $20 worth of items and your free shipping cutoff is $30. The consumer could add another $10 worth of items to qualify for free shipping. If you use Shopify, you may also create a warning alert for consumers when they check out of the free delivery limit. Several apps on the Shopify App Store allow one to accomplish this.
Product Recommendations
On the checkout page, use product recommendation engines to show related or recently seen items. Customers may make more purchases as a result of this subtle reminder of products they might have missed.
For the purpose of implementing a product suggestion strategy, Shopify offers integrated recommendation features. Personalized product recommendations can also be incorporated into your email marketing campaigns.
Provide members personalized product recommendations based on their past purchases from your store. Have a Shopify marketing agency review your current strategy and make recommendations for optimizing product suggestions to increase sales and customer engagement.
Provide Package Deals
Another excellent strategy to increase average order value and encourage clients to make larger purchases is to create bundle discounts. Customers are more inclined to make larger purchases when they understand the advantages of buying bundles.
For instance, if you sell phone accessories, a $2 phone case would make a tempting freebie. Instead of selling cases separately, you might offer a bundle deal where buyers purchase three and receive a fourth case free.
Consequently, offering bundle discounts to clients can boost your average customer value (AOV) and raise the desirability of your store’s merchandise. Just make sure to price your things properly and pick your free present items wisely. It would be wiser to pick pertinent things that clients genuinely need because not all package offers are appropriate and profitable.
Offer Product Bundling
One tried-by-fire tactic to get consumers to spend more is bundling goods. Group related products and provide them at a discounted price when bought as a bundle to create product bundles. If you offer cosmetics, for instance, pair a skincare kit comprising a cleanser, moisturizer, and serum at a reduced price than if consumers purchased each item alone.
This improves the apparent worth of their purchase as well as motivates consumers to buy more. Product bundling benefits stores by allowing them to offer several items instead of one; it also helps consumers buy what they need in one shot.
Endnote
By implementing these strategies into your Shopify business, you can see noticeable improvements in average order value, which will ultimately lead to more sales and profitability. Keep an eye on how these tactics are affecting AOV and modify as necessary in response to client feedback.
People also read this: Should You Let Your Partner Pick Their Own Engagement Ring