Firstly, what exactly does an average order value in business mean?
Well, the term can be described as the average dollar amount a customer spends when placing an order in an e-commerce store.
If you own an e-commerce store, you probably know for a fact that one of the main objectives of your store is to make money, right? So, when you focus on increasing the average order value, you, in a way work towards achieving this objective. It further helps in the expansion of your business over time through boosted sales and ever-increasing customer base.
But, do you know how you can effectively increase the average order value for your business? Read on to have a clear idea about the same.
Leverage social proof:
Social proof benefits your online business in a number of ways. It not only compels the customers to buy from you, it further helps improve your average order value.
So, it’s advisable to allow all your customers to share their shopping experience with you. Let them voice their opinion help others know more about your brand, products, and services.
These social proofs may vary from ratings to reviews to user-generated content and so on. Provide a platform to all your customers to leave genuine reviews so that your future customers know that your brand has got nothing to hide!
Offer time-sensitive deals:
You must have often come across those hot deals on online shopping sites that tend to expire within a time frame. That’s what a time-sensitive deal is!
You can leverage such deals to boost your average order value during slower periods. You can entice your customers by offering a 24 or 48-hour deal where they either get a free gift or a special discount when they’ve ordered a certain quantity of products. These deals effectively create a sense of urgency and hence boost a business’s profits.
Limit your offerings:
As a matter of fact, your customers tend to get confused and are more likely to abandon your e-commerce store if you offer them unlimited choices!
Well, it actually gives the sense that these aren’t particularly tailored. On the other hand, a limited offering of choices feels more bespoke and increases the chances of your customers clicking the “add to cart” button.
It’s better to limit what you offer if you really wish to engage your visitors with what you’re offering.
Provide bundle deals:
This is yet another tactic that can effectively help boost the average order value.
In order to provide a bundle deal, you can provide a buy 3 and get 4th free or buy 4 and get a 5th free or any other enticing deal. Just make sure that the products you offer in the deal are priced in a way that you cover the costs of the free product while still making more profit from the bundle deal!
Make the most out of a live chat service:
Not only can a live chat service help the customers reach out to your support team as and when required, it can also help boost the average order value.
Want to know how?
Well, customers initiate a chat whenever they have a query regarding a particular product, its payment or other such issues. That’s where a live chat agent can help answer the customer’s questions in real time. He/she can further offer a product as a resolution! A business can actually use its live chat window as a place to upsell the most relevant products to all its customers!
If you too wish to benefit your online business simply follow these tips and get what you desire!