{"id":4860,"date":"2023-06-20T12:17:39","date_gmt":"2023-06-20T19:17:39","guid":{"rendered":"https:\/\/thegood.com\/?post_type=insights&p=4860"},"modified":"2025-05-21T09:34:01","modified_gmt":"2025-05-21T16:34:01","slug":"increase-average-order-value","status":"publish","type":"insights","link":"https:\/\/thegood.com\/insights\/increase-average-order-value\/","title":{"rendered":"Nine Strategies To Increase Average Order Value"},"content":{"rendered":"\n

There is sage advice that I\u2019m sure you\u2019ve heard: never grocery shop hungry.<\/p>\n\n\n\n

Grocery shoppers that visit the store with a rumbling stomach end up ignoring their lists and loading their carts with anything and everything in sight.<\/p>\n\n\n\n

It\u2019s the store owner\u2019s dream! And what if I told you that your ecommerce store could identify things that make your shoppers \u201chungry\u201d for your products so they abandon their proverbial lists while on your site?<\/p>\n\n\n\n

Ecommerce marketers might scoff at this, but grocery shopping is the perfect way to illustrate how to increase average order value (AOV).<\/p>\n\n\n\n

Shoppers are already on your site, and your job is to show them products they are \u201chungry\u201d for beyond their original shopping list.<\/p>\n\n\n\n

Instead of driving traffic and new visitors to your site (and battling your customer acquisition costs), you can draw more value out of the customers you already have. Meaning you can grow your business without having to invest heavily in additional marketing and advertising.<\/p>\n\n\n\n

In this Insight, we\u2019ll be sharing nine tactics that you can utilize on your website to motivate customers to buy more.<\/p>\n\n\n\n

What is Average Order Value (AOV)?<\/h2>\n\n\n\n

Average order value (AOV) measures the average dollar amount spent every time a customer places an order on your website. To calculate your website\u2019s AOV, simply divide total revenue by the total number of orders.<\/p>\n\n\n\n

Let’s say you sell $10,000 of products in a month, and that revenue was created by 500 customer orders. Your AOV would be 10,000\/500 = $20 per order.<\/p>\n\n\n\n

Average order value is a crucial ecommerce metric<\/a> to track because it provides a window into the purchasing behavior of your customers. Improving the average order value of your website will have a direct impact on your sales margins and profit while also providing you with critical insights into the behaviors and buying patterns of your audience.<\/p>\n\n\n\n

You should be looking at ways to drive more value from the traffic you get to your site. If you don\u2019t track AOV, you won\u2019t know if it\u2019s working.<\/p>\n\n\n\n

Nine Tactics to Improve Your Average Order Value<\/strong><\/h2>\n\n\n\n

Motivating your customers to spend more on your website can be achieved by delivering a better customer experience.<\/p>\n\n\n\n

1. Identify what makes your audience \u201chungry\u201d<\/strong><\/h3>\n\n\n\n

Consider your audience’s needs. What are their purchase motivators? Why should they be hungry for what you\u2019re selling? How can your products\/services satisfy their specific needs?<\/p>\n\n\n\n

Once you\u2019re able to pinpoint what makes your audience \u201chungry\u201d, you\u2019ll have a much better understanding of how to tailor your messaging.<\/p>\n\n\n\n

Get started by talking to your customers.<\/strong> Opening up a direct line of communication with your audience is one of the best ways to learn about customer behavior and what motivates them to purchase.<\/p>\n\n\n\n

Consider running a small focus group to understand what makes them \u201chungry\u201d for your products\/services. User testing<\/a> is another great way to learn about your customers and can play an important role in helping to increase your average order value.<\/p>\n\n\n\n

If you\u2019re looking for a customer research tool to support your efforts, check out UserInput<\/a>.<\/p>\n\n\n\n

2. Cross-sell complementary products<\/strong><\/h3>\n\n\n\n

Someone purchasing a heavy raincoat may also be interested in getting a waterproof hat or a pair of rain pants.<\/p>\n\n\n\n

    \n
  • Cross-sell where it makes sense.<\/strong> For complimentary items, develop add-ons and recommend them to your visitors. Cross-selling<\/a> isn\u2019t just a product page or checkout tactic. It\u2019s a service you provide. Do it consistently and watch average order values respond.<\/li>\n\n\n\n
  • Create bundles of items that make sense together.<\/strong> You know they\u2019ll need a reel, fishing line, and bait to go with their new pole, don\u2019t let them forget! Create a bundled offer to make it easy for people to buy all the additional products they need simultaneously.<\/li>\n\n\n\n
  • Look for trends in your order history.<\/strong> Are there connections you hadn\u2019t realized before? It\u2019s very likely that there are product combinations you haven\u2019t thought of because you can\u2019t think like your target audience. Look through your order history to identify buying patterns to help inform your cross-selling efforts.<\/li>\n<\/ul>\n\n\n\n

    Columbia Sportswear<\/a> is a great example of a brand that knows how to cross-sell. On their product page, once you scroll past the product details, you\u2019ll see a section labeled Complete the Look. <\/em>Here they suggest items that complement the one the customer is looking at, exposing them to more options and potentially enticing them to make additional purchases.<\/p>\n\n\n\n

    \"Columbia<\/figure>\n\n\n\n

    Don\u2019t leave it up to the customer to remember everything they need when shopping on your website. It\u2019s your job to help them out.<\/p>\n\n\n\n

    3. Upsell an upgraded version of the item<\/strong><\/h3>\n\n\n\n

    Upselling is a time-tested method for increasing average order value, and it\u2019s widely used by both retailers and ecommerce businesses.<\/p>\n\n\n\n

    When you\u2019re buying coffee filters, why would you buy the 50 filter pack when you could just as easily spend an additional $5 and buy the 150 filter pack?<\/p>\n\n\n\n

    4. Amplify social proof throughout the customer experience<\/strong><\/h3>\n\n\n\n

    Leveraging social proof on your website can be a surprisingly effective method for improving average order value. We tend to trust our peers more than we trust brands. Every ice cream company will say their product is superior, but when a fellow shopper<\/a> confirms that claim, you\u2019re apt to believe it.<\/p>\n\n\n\n

    Here are some ways to use social proof to increase AOV:<\/p>\n\n\n\n

      \n
    • Highlight customer reviews of products and customer testimonials<\/li>\n\n\n\n
    • Include earned media features from recognizable brands<\/li>\n\n\n\n
    • Feature certifications and trust badges<\/li>\n<\/ul>\n\n\n\n

      Take the cosmetics brand Rare Beauty<\/a>, for example. Their product pages offer a ton of social proof that comes in the form of customer ratings and reviews. They also added badges that feature product awards. This beauty brand knows how to create trust by letting its customers do the talking for them.<\/p>\n\n\n\n

      \"Rare<\/figure>\n\n\n\n

      The best ecommerce and lead generation sites cultivate social proof in their marketing strategy, then develop ways to implement that strategy.<\/p>\n\n\n\n

      5. Incentivize shoppers without devaluing your brand<\/strong><\/h3>\n\n\n\n

      Be smart about how you incentivize a purchase. Relying on an offer that promises a 25% discount will only hurt your AOV in the long term.<\/p>\n\n\n\n

      Nordstrom is known for their pricing strategy and \u201cfree gifts\u201d with a purchase over a certain threshold. They\u2019re essentially giving away perfume samples they already receive for free from their distributors, but the messaging makes it seem like the company is going out of its way to offer you something special.<\/p>\n\n\n\n

      Here are some ways to incentivize purchase and increase AOV (without devaluing your brand):<\/p>\n\n\n\n

        \n
      • Offer a free gift with purchase at a certain threshold<\/li>\n\n\n\n
      • Set up a loyalty program<\/li>\n\n\n\n
      • Give a buy one get one free deal on certain products<\/li>\n<\/ul>\n\n\n\n

        Chewy has found a great way to not only increase AOV but keep customers coming back for more. They offer a $30 free eGift card for those with an order of $100 or more. The free eGift for the store assures them that the customer will return for future purchases while also enticing them to buy items worth $100. It\u2019s a great win-win strategy!<\/p>\n\n\n\n

        \"Chewy<\/figure>\n\n\n\n

        These are starter ideas, but the list of possible incentives could be huge. Here\u2019s a list of 20+ ways to increase sales without discounting<\/a>.<\/p>\n\n\n\n