5 Tips for Increasing Average Order ValueTable of ContentsIntroductionStrategy 1: Offer a Bundle DealStrategy 2: Offer Discounts with a Minimum SaleStrategy 3: Offer Gift Cards for Specific PurchasesStrategy 4: Encourage Customers to Purchase More Expensive ProductsStrategy 5: Text Customers to Remind them to Return to Their CartsAdditional Strategies to Increase Average Order ValueConclusionFrequently Asked Questions (FAQ)IntroductionDid you know that nearly 40% of shoppers tend to exceed their budget while shopping online? For eCommerce retailers, this statistic underscores a significant opportunity to increase sales. Imagine the strategies brick-and-mortar stores use, like placing impulse buys at the checkout counter. But how do you translate this to an online setting where customers don't face the same in-person experience? This article dives deep into effective strategies to raise your average order value (AOV) and ensure that your online customers add more to their carts, even without a physical checkout line.You'll learn about bundling products, offering discounts, leveraging gift cards, upselling, and utilizing SMS reminders. Implementing these tactics can dramatically lift your sales figures and provide a more robust shopping experience for your customers. Stick around to discover actionable tips and insights that can make a notable difference in your eCommerce business.Strategy 1: Offer a Bundle DealBundling products is one of the most effective ways to increase the average order value. By offering a set of related products at a discounted rate, customers feel they are getting more value for their money. This strategy simplifies the buying process for shoppers and often results in them purchasing items they might not have considered buying individually.For example, Amazon often uses bundling by indicating “Customers who bought this item also bought” to encourage shoppers to add more items to their cart. This concept can translate effectively to your eCommerce site. Not only does bundling make the purchasing decision easier for the customer, but it also highlights complementary products they might need. Strategy 2: Offer Discounts with a Minimum SaleOffering discounts or free shipping for orders over a certain amount is another compelling way to increase AOV. This tactic prompts customers to add more items to their shopping carts to meet the discount threshold.A common approach is to set the minimum order requirement slightly above your current average order value. For instance, if your average order is $45, a free shipping counter at $50 will push customers to add a little extra. This strategy is particularly effective because it often incites customers to add impulse or low-cost items to reach the threshold.HubSpot reports that nearly a quarter of online shoppers are inclined to increase their purchase to qualify for free shipping. By slightly elevating the minimum amount needed for discounts, you encourage customers to spend more than they initially planned.Strategy 3: Offer Gift Cards for Specific PurchasesIntegrating gift cards into your sales strategy can also boost your AOV and encourage repeat purchases. Offering a small gift card with a minimum purchase not only incentivizes customers to meet that purchase threshold but also drives future sales.Imagine a scenario where you offer a $5 gift card for customers who spend $25 or more. This approach encourages customers to return to your store to use the gift card, increasing the likelihood of another purchase. Crucially, the value of items in your store should be higher than the gift card offered, ensuring that it cannot be redeemed in isolation and must be combined with other purchases.Big retailers like Target successfully employ this strategy by offering gift cards on specific bulk purchases. This tactic can yield dual benefits: increased AOV on the initial sale and a higher chance of a second sale when the gift card is redeemed.Strategy 4: Encourage Customers to Purchase More Expensive ProductsAdopting a tiered pricing model, such as ‘Good, Better, Best,’ can also be very effective. Offering customers a range of product versions at incremental price points often leads many to choose a higher-priced option than they initially considered.For example, amusement parks like Six Flags have implemented multi-tiered ticket pricing that offers benefits like reduced wait times for rides. Customers can choose from various ticket tiers, with the Best option providing the highest benefits at the highest price. This method appeals to customers’ desire for choice while often steering them toward more premium options.The psychology behind this is powerful: offering multiple price points frames the mid-range option as the most worthwhile, driving sales toward these more expensive products. Implementing tiered pricing can work across diverse products, from electronics to service packages.Strategy 5: Text Customers to Remind them to Return to Their CartsCart abandonment is a significant challenge in eCommerce. Sending timely reminders via text message can be a highly effective method to combat this issue. Unlike emails, which can languish unread in spam folders, text messages have an impressive open rate with 95% being read within three minutes of receipt.Using platforms like TextMagic, you can set up automated text reminders to notify customers about their abandoned carts. This strategy not only increases the likelihood of completing the sale but also enhances customer satisfaction by providing a seamless shopping experience.Cart recovery rates can soar as high as 55% using this method, and businesses have reported increased revenue, sometimes up to $20,000 more per month, by incorporating SMS reminders into their marketing strategy.Additional Strategies to Increase Average Order ValueImplement a Loyalty ProgramRewarding repeat customers with a loyalty program can also effectively boost AOV. Offer points or discounts for each purchase, thereby encouraging customers to buy more to unlock various rewards and benefits.Use Exit-Intent PopupsDeploying exit-intent popups is another way to retain customers. When a customer moves to leave the site, a popup can appear offering a last-minute discount or special offer. This tactic can convert hesitant shoppers into buyers.Personalize Product RecommendationsUtilize customer data to recommend relevant products. Personalized suggestions tailored to a customer's browsing history can significantly increase the likelihood of additional purchases.Create Limited-Time OffersCreate a sense of urgency through limited-time offers or flash sales. This strategy pushes customers to make quick decisions, often resulting in larger carts and higher AOV.Enhance Product Descriptions and ImagesDetailed descriptions and high-quality images can give customers confidence in their purchases. Clear and compelling product information can reduce hesitation and encourage more significant buys.ConclusionIncreasing the average order value on your eCommerce site involves a blend of strategic promotions and thoughtful customer engagement. By bundling products, setting minimum order discounts, offering gift cards, adopting tiered pricing models, and utilizing SMS reminders, you can motivate customers to add more to their carts. Additional strategies like loyalty programs, exit-intent popups, personalized recommendations, limited-time offers, and enhanced product descriptions also contribute to higher AOV. Implement these tactics to not only boost your sales but also enrich the overall shopping experience for your customers.Frequently Asked Questions (FAQ)How can bundling products increase my sales?Bundling related products together not only makes the shopping experience easier for customers but also often encourages them to purchase multiple items at once, thus increasing the overall value of their order.What’s an effective way to use free shipping deals?Set a minimum order threshold for free shipping that’s slightly above your current average order value. This will push customers to add a few extra items to their cart to qualify for the discount.Are gift cards an effective way to boost sales?Yes, offering gift cards for purchases can encourage repeat business. Ensure the gift card value is slightly less than the typical product cost to encourage additional purchases when the gift card is redeemed.How does tiered pricing work?Tiered pricing offers customers different versions of a product at various price points, encouraging them to opt for more premium versions. This approach leverages the psychology of choice to drive higher-value sales.Why are SMS reminders effective for cart recovery?Text messages have a significantly higher open rate compared to emails, making them an effective tool for reminding customers about their abandoned carts and increasing the likelihood of completed sales.