Sometimes shop owners focus a lot of their time on just increasing traffic to their website and not worrying about orders on the website. If you focus on increasing your average order, then you can take advantage of that traffic that is coming. That’s why episode 42 of the Product Powerhouse Podcast is about increasing your average order value!
In this episode of the Product Powerhouse Podcast, I’m sharing the importance of increasing your average order value (AOV for short) and actionable steps you can take right now to get started and use my tips to work for YOUR business.
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Some of the talking points I go over in this episode include:
- What is average order value and why you should care about it.
- 8 actionable tips to increase your average order value and knowing which tips are right for your business.
- Using the tips we learned to benefit your business while avoiding a decrease in profit margin or looking too gimmicky to your customers.
- Free or inexpensive apps to help you implement these tips within your Shopify store.
If you found this episode helpful in learning why your AOV is important, how to even increase your average order value, and some apps that can help get you started, I would love to hear from you. Be sure to tune in to all the episodes to receive tons of practical tips on growing your product shop and to hear even more about the points outlined above.
Thank you for listening!
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What is Average Order Value?
- On average, the dollars spent per order in your shop
- AOV is a key performance indicator that online businesses measure to understand their customers’ purchasing habits.
- Sometimes shop owners focus too much of their energy on increasing traffic to a website when it might be better to focus on increasing their AOV.
- That being said, it’s still only one piece of your marketing. Don’t put all your eggs in one basket.
Why Should You Care?
- Basically, the cost of getting new customers is higher than the cost of getting customers to spend more.
- Mathematically speaking, you can either get 10 customers to spend $100 or 100 customers to spend $10. Which seems easier.
How to find your AOV in Shopify
8 Ways to Increase Prices
- Increase your prices.
- Create an order threshold above your AOV to encourage higher spending.
- Create Product Bundles
- Give a volume discount
- Add an upsell/cross-sell
- Offer an up service
- Post checkout upsell offer
- Create a customer loyalty program
8 Shopify Apps To Increase AOV
Bundler helps you boost sales and increase your average order value by applying discounts on products bought in bundles, so people are encouraged to buy more products per order. So it will say like buy more and save, and the price will go down when they are more products to their carts.
If you are going to offer product bundles with a discount, make sure that you include the discount in your pricing margins.
Zoorix is an affordable upsell app that works on product pages and cart pages. You can use it to suggest other products, or even add on something like gift-wrapping or a warranty.
ReConvert is a cool app for post-purchase upsells. You can offer a deal or discount after someone has purchased something from your shop, and it will show up with 2 orders on your Shopify site.
Again, make sure that’s included in your margins. I don’t want anyone to feel like they have to offer discounts if it’s going to cut into your margins.
Frequently Bought Together Pro and Upsell Recommendations
Are awesome for creating those amazon style recommended product sections. You know when you are shopping for watercolor paints, and they show you paintbrushes, paper, and an easel.
Two great apps for creating loyalty programs. I really like stamped, because they also have a review app and it connects to the loyalty app so that your customers get points for also leaving reviews. I figure you might as well use one system for both things, right?
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