3 easy ways to increase your AOV (average order value)

If you’re not familiar with this, it’s really simple. It’s the average of all your previous customers orders added together.

If you have 10 orders, add up all the different totals for each order and divide by 10. This is also really easy to see from your analytics as it’s generally already calculated for you.

First, find your overall AOV for the previous month. How has it changed since the month before that? Or, have a look at a annual view and see what the average is across the year.

Now ask yourself, would your AOV look like if you were able to increase it by just 10%?

Let’s look at an example, and to keep it simple, I’m looking at a week view.

So let’s say you took 20 orders last week.
The AOV (average order value) was £52.
That totals sales of £1040 for the week.
You could multiply that by 52 to get a full year sale forecast = £54K.

Now, let’s increase that AOV by 10% so it becomes £57.20.
Now, those 20 orders total sales for the week of £1144.
An extra £100.

Times that by 52 and the full year sales forecast = £59K.

An extra £5K!Just by increasing the AOV.

So, what could you do to increase your AOV?

  1. Increase your prices – raising them by a small amount can make an overall difference. So many small business fail to actually increase their prices. Consider the costs you have – they’re likely increasing anyway so a small hike in product prices is a must. Nudge them a bit more and you’ll increase your overall profit too.
  2. Do you offer a first order discount? Add a spend threshold – a minimum value to reach (just above your current AOV) in order to qualify. This results in more orders at a higher value which will push up the overall AOV.
  3. Offer upsells at the checkout – just like the shelf at the checkout at the supermarket, this can be very effective. Sometimes you don’t even know you want it until it’s there when you’re checking out. The same is true for online shopping. Offer inexpensive items at the checkout that are easy for the customer to add to their order. Even if it’s just £1 or so, it can all add up across the year.

There are many more methods we can use to increase the AOV and it’s something I go through in detail when working with ecommerce clients regardless of the products they sell. If this is something you’re interested in, click here and have a look at some options of how we might work together.

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