Facebook is one of the most popular social media platforms in the world. It has over 2 billion active users, and that number continues to grow every day. So why is Facebook marketing so important? Here are five reasons why you should be using it for your business: 1. Reach a Massive Audience With over […]
How to Increase Average Order Value for Your eCommerce Store
If you're running an eCommerce store, then you know that increasing Average Order Value (AOV) is key to your success. After all, if customers are only spending a little bit each time they visit your store, you won't be able to generate the revenue you need to grow your business. This blog post will discuss tips for increasing AOV or Average order value and generating more revenue from your eCommerce store!
How to increase average order value in eCommerce?
There are many digital marketing channels and eCommerce tactics you can use to increase AOV, but here are a few of our favorites:
- Use pop-ups or exit intent offers to upsell customers on higher-priced items
- Offer free shipping for orders over a certain amount
- Run promotions or discounts that encourage customers to spend more money
- Create product bundles that offer a discount for buying multiple items
- Use Urgency and Scarcity tactics like countdown timers to encourage customers to buy now89
By following these tips, you can start increasing AOV for your eCommerce store and generating more revenue!
Why is increasing AOV important?
AOV is crucial because it directly impacts your store's bottom line. The more each customer spends, the more revenue your store will generate. Additionally, increasing AOV can help you acquire new customers and retain existing ones.
For example, let's say you're running a promotion that offers free shipping for orders over $100. This promotion will likely encourage customers to spend more money to qualify for free shipping. As a result, you'll generate more revenue and acquire new customers looking for a good deal.
So, if you want to increase your eCommerce store's revenue, focus on increasing AOV!
How do you determine a "good" AOV for your store? Is it something you're working to increase or something you accept as is?
A good AOV varies depending on your store's product offerings and average order size. For example, a luxury eCommerce store that sells high-end products will have a higher AOV than a budget eCommerce store that sells lower-priced items.
As a general rule of thumb, you should aim to increase your AOV over time. By continually growing AOV, you'll be able to generate more revenue and scale your eCommerce business.
What strategies have you found successful for increasing AOV?
In addition to the tips we've discussed above, here are a few more ideas for increasing AOV:
- Offer loyalty programs or rewards that encourage customers to spend more money
- Provide customer service that exceeds customer expectations
- Use data and analytics to understand what customers want and need
What scope is most revealing for the average order value for your shop? Daily, weekly, monthly, year to date & why?
The most revealing scope for AOV is probably monthly because it considers seasonality and other factors that can impact AOV. Additionally, looking at AOV yearly can give you a good idea of how your store performs over time.
Do you prioritize increasing the number of orders or average order value & why?
At the end of the day, you want to focus on increasing the number of orders and AOV. However, if you had to choose one, we recommend focusing on AOV because it directly impacts your store's bottom line. By increasing AOV, you'll be able to generate more revenue and scale your eCommerce business.
What other KPIs like AOV do you prioritize to strengthen your business?
Other key performance indicators (KPIs) are essential for eCommerce businesses, such as conversion rate, customer lifetime value, and cost per acquisition. However, AOV is one of the most important KPIs because it directly impacts your store's bottom line.
By increasing AOV, you'll be able to generate more revenue, acquire new customers, and retain existing ones. So, if you want to strengthen your eCommerce business, focus on increasing AOV!
To help you more about digital marketing, I need you to check this ebook I've created about the 10 things that I'VE WISHED I had known when I started marketing. If you are or are not in the same place, you must read this. Get the ebook here.
If you want more up close and personal marketing strategies, advice, or an overhaul of your marketing structure, email us at firstname.lastname@example.org or schedule a call with Zack now.