Average Order Value is Key to Upping Profits
You know there are many ways to turn a profit through e-commerce. You offer great products at competitive prices, and back that up with excellent customer service. But how do you actually increase those profits? You might find that process elusive unless you start paying attention to average order value. Average order value — or AOV — simply means how much customers spend each time they order. Get them to buy more each time they shop, and you should see an uptick in your profits.
Let’s examine how you can make your AOV increase.
Grow loyal customers
Your customers are good as gold. Repeat customers, who tend to order more each time they shop, are going to impact your AOV the most. So investing in your repeat customers is a way to ensure long-term profitability. Think about offering incentives to these special customers, perhaps even with different bundled levels of rewards depending on how much the customer spends annually.
Encourage a buy today mentality
Volume discounts such as two-for-one offers work since they move more products. But you don’t need to have a loss-leader. Instead, think of offering volume discounts on products where it’s simple and logical for your customer to buy more. Make these limited time offers. You want to urge your customer to purchase in the next two days, not two months from now. If you sell office products, now is the time to put school supplies on sale. Never give customers a reason to procrastinate. Give them a reason to buy today.
Free shipping is awesome
Do you see a lot of abandoned shopping carts? Your conversion rate not where it should be? If you look at your current AOV, and then make a free shipping offer at a higher threshold — but not too much higher — you should see AOV increase. People don’t like paying for what they can get for free, so if they need to buy another item or two to score free shipping, they’ll do it. Make sure you plaster that free shipping offer where customers see it immediately.
For more tips click here: https://www.splitit.com/2016/08/average-order-value-is-key-to-upping-profits/
