As a business owner you will always be on the lookout for ways you can increase the amount of money your customers spend when visiting your online store. The amount of money your customers spend when they place an order through your ecommerce store is known as the average order value. It is calculated by dividing the revenue by the number of orders and can reveal a lot about your customers and your business during a certain time period. Today we are going to discuss how to increase your customers average order values and generate more sales and revenue for your business.1. Upselling and cross sellingUpselling and cross selling are fantastic techniques for increasing your AOV. If your customer has already put one item in their basket, it is likely that they are in the 'mood' to purchase another. It is the perfect opportunity for you to suggest other items that may interest them in order to increase your AOV. Upselling is where you suggest a more expensive version of the product a customer has put in their basket. Cross selling on the other hand is where you suggest an item that is related to the one they have put in their basket. For example if they have purchased a laptop, you may want to try and sell them a case or a keyboard cleaner.2. Product bundlesGrouping products together is a great way of increasing your average order values. It enables customers to purchase multiple items at the same time, providing them with a quicker online shopping experience. Many ecommerce businesses in the fashion industry have started using this technique to increase their AOV, often calling it 'shop the look.' This enables customers to purchase an entire outfit, including accessories, with just one click of the mouse.3. RewardsProviding offers and discounts to customers spending more money is a great way of increasing your average order value. Many ecommerce businesses offer their customers free shipping if they spend a certain amount of money. Others use loyalty point schemes, where customers are rewarded with points to spend online if they spend a certain amount of money. If you are thinking of creating a loyalty scheme for your ecommerce website, you may want to purchase a Magento module to facilitate it.Your customers' average order values can tell you how effective your marketing efforts have been in persuading your target audience to make a purchase from your ecommerce website. AOV can also give you an insight into your customers' buying habits, helping you to identify your most valued customers. This valuable information will help you to target your marketing ads more specifically in the future and tailor your strategies effectively.
