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Boosting revenue in eCommerce doesn’t always require acquiring new customers—it can be as simple as increasing Average Order Value (AOV). In this post, we’ll explore 15 actionable growth hacks to help you encourage customers to spend more per transaction, driving higher revenue and long-term business success.
Every online business strives to boost revenue with innovative strategies. One effective way is by increasing Average Order Value (AOV), which measures the average amount spent per order.
By encouraging customers to spend more per transaction and focusing on high-potential products, you can drive substantial revenue growth. While it may seem challenging, the rewards are significant—customers will not only stick with your brand but also recommend it to others, amplifying your success.
What is the Average Order Value (AOV)?
Average Order Value (AOV) is the average dollar amount spent per customer order on your online store. This critical metric provides insight into your customers’ shopping behavior and helps optimize strategies to maximize revenue and ROI.
How to Calculate Average Order Value?
Calculating AOV is simple: divide your total revenue during a specific period by the total number of orders in the same timeframe.
For example, if your store generated $50,000 in revenue from 1,000 orders last month, your AOV would be: $50
Tracking AOV regularly helps identify trends and refine strategies to enhance revenue growth.
Why does Average Order Value Matter in eCommerce?
AOV is a vital eCommerce metric because it offers insights into customer behavior, enabling better pricing strategies and improved ROI.
By increasing AOV, you can:
- Boost Revenue Without Extra Costs: Higher AOV means more revenue per sale without additional marketing spend. For example, if 100 customers add $15 extra to their orders, you generate $1,500 in additional revenue without increasing your acquisition costs.
- Balance Customer Acquisition Costs: A higher AOV allows you to offset your marketing expenses, making campaigns more profitable.
- Improve Marketing and Pricing Strategies: Understanding AOV can help refine promotional tactics and product pricing, ensuring a greater return on investment.
19 Ways to Increase Average Order Value
Let’s explore 19 growth hacks to increase Average Order Value (AOV) for your eCommerce store which will scale up your business with more revenue, more value, more customers, and of course more resources.
1. Understanding Average Order Value
Average Order Value (AOV) is a crucial metric for e-commerce businesses, as it measures the average amount spent by customers per transaction. Understanding AOV is essential to optimize pricing strategies, improve customer experience, and increase revenue.
AOV can be influenced by various factors, including customer behavior, product pricing, and marketing strategies. By analyzing AOV, businesses can identify areas for improvement and develop targeted strategies to increase average order value.
2. Calculating and Measuring Average Order Value
Calculating your Average Order Value (AOV) is a straightforward yet crucial process that helps you assess customer spending patterns and strategize for growth. By dividing your total revenue by the number of orders in a specific timeframe, you get a clear picture of your store’s performance.
Businesses can use various tools, such as Google Analytics and Shopify reports, to track AOV and gain insights into customer behavior. By monitoring AOV regularly, businesses can identify trends and patterns that can inform marketing and pricing strategies.
However, beyond just tracking AOV, leveraging tools like the WooCommerce Extra Fees Plugin can actively help boost your average order value by introducing dynamic extra fees at checkout. Here’s how this plugin becomes a game-changer for your WooCommerce store:
- Dynamic Pricing Rules: Add fees for services like quick delivery, secure orders, or packaging, encouraging customers to opt for premium add-ons.
- Custom Fees: Set fees based on payment or shipping methods, incentivizing larger orders to offset costs like express shipping.
Easy to Use, High Impact
The plugin’s intuitive interface ensures seamless setup of percentage-based, fixed, or per-product fees, enhancing both customer experience and your store’s revenue.
WooCommerce Extra Fees
Make profits from every confirmed sale through smart, conditional fees.
14-day, no-questions-asked money-back guarantee.
3. Incentivise Your Customers with Offers and Discounts
When you start an e-commerce store, people will surely visit for the first time. They come to check for products that you offer but if they find it expensive or is not under their budget they quickly switch to another website that provides the same product but with discounts and offers.
One key point to consider here is to give value to customers or visitors in terms of discounts, this way they get engaged in your store and happily spend more to grab those creamy offers.
When you decrease the value of a product you always have a way to encourage them to spend more by giving those discounts for a limited time. They would definitely stop by and purchase multiple items even if you have kept offers on a single product.
Average Order Value (AOV) is a key performance indicator (KPI) that quantifies the average dollar amount spent by customers per order on e-commerce websites. Understanding and increasing this metric is crucial for revenue growth, as it helps in strategizing ways to enhance consumer spending behavior and drive overall sales.
Discounts and offers are powerful tools to drive customer engagement and increase AOV. With the Dynamic Pricing and Discount Rules Plugin, you can craft tailored discount strategies that motivate customers to spend more while enhancing their shopping experience.
How This Plugin Can Help
- Bulk Discounts: Encourage larger purchases by offering discounts on entire categories, products, or attributes. For example, “Spend $100, get 10% off.”
- Tiered Discounts: Create quantity-based offers like “Buy 3 items, get 15% off; Buy 6 items, get 25% off,” pushing customers to buy in bulk.
- BOGO Offers: Implement classic “Buy One Get One” deals or conditional offers like “Buy Product A, Get Product B,” enticing customers to explore more products.
These dynamic discount rules help you not only retain customers but also encourage them to add more to their carts, boosting both sales and AOV effortlessly.
WooCommerce Dynamic Pricing and Discount
Apply advanced discount conditions to drive more revenue with our intuitive and easy-to-use plugin.
14-day, no-questions-asked money-back guarantee.
4. Encourage Them to Buy Other Products Through Recommendations
This hack is one of the coolest ways to increase your revenue with more sales. To achieve this, you first need to calculate the average order value (AOV).
This is possible when you create a page for each product, let them scroll down and see an interesting section something like “Customers who purchased this product also purchased other similar products like below”.
Strategic product recommendations are a proven way to increase sales and boost AOV. The Revenue Booster for WooCommerce Plugin makes it simple to implement cross-selling and upselling techniques that encourage customers to explore and add more products to their carts.
How This Plugin Can Help
- Frequently Bought Together: Showcase complementary products on the product page with customizable widgets, encouraging customers to purchase bundles at a discounted rate.
- Post-Cart Recommendations: Add cross-sells, upsells, and custom product bundles directly to the cart or product pages, nudging customers toward larger purchases.
- Order Bumps at Checkout: Offer exclusive one-time discounts on relevant products during checkout, driving last-minute add-ons and increasing cart value.
By using these features, you not only enhance the customer shopping experience but also significantly increase the likelihood of larger transactions, driving higher revenue for your store.
Revenue Booster for WooCommerce
Increase your average order value by using proven techniques like ‘frequently bought together’ and ‘order bumps’ with the WooCommerce Revenue Booster plugin.
14-day, no-questions-asked money-back guarantee.
5. Showing Best Products or Best Sellers
When customers browse on your portal for a product or even on the home page you can show products that are trending or the best sellers for a particular category.
By implementing a strategic pricing strategy, such as product bundling or offering discounts, you can encourage customers to explore more products and increase their spending, thereby boosting your revenue.
6. Set a Minimum Threshold for Availing the Discount
Customers always want to look for offers, even in a single product they purchase which has a lower price. This way you cannot set a profit for yourself. But you need to implement a smart sales strategy that undeniably encourages existing customers to purchase a product with a minimum amount.
For example, if you are offering them a T-shirt, you can always ask them to buy 2 more T-shirts in order to avail of the discount. This way you can take the price of 2 shirts with lesser discounts.
For a detailed guide on implementing quantity-based purchase rules, check out our blog on WooCommerce Limit Quantity. This post explains how to effectively use purchase limits and thresholds to drive sales and improve customer experience.
7. Combo Pack Offer Works the Best
It may be hard sometimes to sell a single product with a discount and with a higher order value. So, you can offer them a combo pack with all the necessary recommendations within your online store. This way it will prioritize their mind to purchase the product because you are offering them as a combo pack in a thematized approach.
8. Offer a Freebie
The word “free” has all the hidden powers that may change the course of time for any brand. By setting a free shipping threshold, you can encourage customers to add more items to their cart to qualify for free shipping, thereby increasing the average order value.
You can always offer a freebie along with a product that they purchase; in this way, you can increase product value by almost half of the freebie value and generate more revenue.
9. Encourage Buyers with a Customer Loyalty Program
A loyalty program helps you to increase revenue through frequent purchases made by customers. Ideally, it is good to start giving them points or redeemable codes for their next purchase which can be sooner.
Additionally, offering volume discounts through combo pack deals can boost average order value (AOV) by incentivizing customers to purchase in bulk. This is because if a customer is offered a loyalty program over product categories like food, clothes, gadgets, etc. they tend to purchase frequently. The loyalty program works very well for selected niche product sales.
10. Customized Shopper Page
It is very important to understand user behavior to generate more revenue and AOV. For this, you can always use some handy tools that will guide you to identify user behavior, interest, and what they really expect.
Offering free shipping is a powerful strategy to increase AOV by encouraging customers to add more items to their carts to meet the free shipping threshold.
When the page is customized as per their needs they automatically feel comfortable and trust in your store. This results in purchasing more orders with greater value thereby you can increase the Average Order Value.
11. Upselling is the Strongest Weapon in Marketing
Obviously, you would always want a customer to buy a product from your store. But what if you display other similar products relevant to them? This way you encourage them to make more orders, thereby increasing your average order value.
Upselling is a highly effective way to increase AOV by encouraging customers to upgrade or add complementary products to their purchases. The Revenue Booster for WooCommerce Plugin simplifies this process with features like order bumps at checkout and frequently bought together bundles.
By using this plugin, you can create targeted upselling strategies that not only boost revenue but also improve the overall shopping experience for your customers.
Revenue Booster for WooCommerce
Increase your average order value by using proven techniques like ‘frequently bought together’ and ‘order bumps’ with the WooCommerce Revenue Booster plugin.
14-day, no-questions-asked money-back guarantee.
12. Financial Assistance for High-end Products
You are well aware of the fact that it may not be possible for every customer to make full payment mainly for electronics, home appliances, or other larger budgeted products.
In such cases, you can set a minimum purchase threshold above which they can avail the offers like minimum or free interest rates, credit card offers, and other financial benefits. This will ease their purchase decision and they will be ready to pay more through increasing average order value tactics and ultimately help you generate more revenue.
13. Retargeting Based on Their Browsing History
When they search for any product you can track their browsing history and recommend them such products of the same category or maybe of the same value. This way you can indulge them in buying more and look for other products as well.
Here you get two benefits: one is you earn more revenue because they are ordering more products and the second is they are spending more time on your website this also boosts your overall visibility.
By implementing upselling strategies, you can increase the average dollar amount spent per order, which is crucial for boosting your eCommerce brand’s performance.
14. Attract First-time Buyers with Average Order Value
The first thing here to understand is their mindset and their requirement. You can set a threshold above which if they buy anything, they get special coupon codes, offers, or even discounts, and you can also offer free shipping.
This way your offer is circulated among their friends and relatives, also giving you decent price value and even loyal customers.
15. The Art of Price Anchoring
This is one of the best tactics to direct them to buy higher-priced products than lower-priced products by utilizing free shipping thresholds.
Place two lower-priced products and in between them place a high-priced product this way when they see the first product it clicks their mind to some extent but when they look for a second product which is, of course, high-priced they will definitely finalize that product and buy it.
16. Optimizing Product Presentation
Optimizing product presentation is a critical aspect of increasing AOV. By showcasing products in an appealing and visually attractive way, businesses can encourage customers to spend more. This can be achieved by using high-quality product images, videos, and detailed product descriptions.
Additionally, businesses can use product bundling and upselling strategies to increase average order value. By presenting products in a way that highlights their value and benefits, businesses can increase customer satisfaction and loyalty.
For tips on enhancing product presentation, explore our blog on Product Specifications for WooCommerce. Learn how to create compelling product pages that captivate your audience and drive higher sales.
17. Personalized Email Marketing
Personalized email marketing is a powerful tool for increasing AOV. By sending targeted and personalized emails to customers, businesses can encourage repeat purchases and increase average order value. This can be achieved by using customer data and purchase history to recommend complementary products and offer personalized promotions.
Additionally, businesses can use email marketing automation tools to send timely and relevant emails that encourage customers to make additional purchases. By personalizing email marketing campaigns, businesses can increase customer engagement and loyalty, ultimately leading to higher average order values.
18. It’s Time for a Contest or a Quiz
One of the most influential strategies to engage customers is by implementing an effective pricing strategy, such as organizing a quick contest or a quiz. This will keep engaged with your portal for a longer time in order to win attractive prizes.
As a prize, you can offer them a product and coupon for their next purchase or you can offer them discount coupons that are exclusive to them and highlight the names of winners so that they feel more special.
19. Lightning Deals Through Time-Sensitive Offers
If a product has a value of say $300 then you can offer them it is just $130. By doing this, you can increase the average dollar amount spent per order, causing your sales graph to grow tremendously.
People would prefer to buy more very quickly and grab many relevant products for them as early as possible without any second thought.
Conclusion
Increasing your Average Order Value (AOV) isn’t just about boosting revenue—it’s about understanding your customers, optimizing their shopping experience, and creating value at every touchpoint.
By implementing the strategies outlined in this blog, you can encourage customers to spend more per transaction while enhancing their overall satisfaction with your brand.
From personalized recommendations and loyalty programs to strategic upselling and time-sensitive offers, the opportunities to increase AOV are both diverse and effective. The key is to test these tactics, analyze their impact, and adapt based on what works best for your audience.
WooCommerce Extra Fees
Make profits from every confirmed sale through smart, conditional fees.
14-day, no-questions-asked money-back guarantee.