When it comes to increasing the profits of your e-commerce store, there are two strategies you can follow: 1. Attract more customers to your store, or 2. Boost how much your customers are spending with you. While both strategies will put more zeroes in your bank account, focusing on increasing your customers’ spend often comes with lower marketing costs. This is known as average order value, and here’s what you can do to increase yours…
#1. Cross-sell like a champ
While many of your customers might arrive at your store seeking a specific product, it’s your job to encourage them to fill their carts with more than one goodie. One way to do that is to display complementary goods on your all product listing pages. You might even consider offering a complimentary product at a discount to close the sale.
Mattress-in-a-box selling wizards Koala Mattress do this incredibly well. You go in for a mattress and come out with so much more!
#2. Don’t forget the up-sell
You can also increase your average order value by encouraging your customers to purchase the more expensive premium version of the product they’re browsing. Customer reviews are a good tool to use here. Pointing out the additional features of the premium version will establish value, and getting your customers to sing your praises provides excellent social proof.
#3. Give rewards for high-value purchases
Offering discounts or other rewards like free shipping on orders over a set minimum amount is another great way to encourage your customers to spend more at your store. This can be particularly effective when a customer is uncertain about a purchase — discounts or rewards will increase the perceived value of the purchase and will help get you over the line.
#4. Offer customisations
Give your customers the opportunity to customise your products — at an extra cost. Where relevant, sell a basic model then charge extra for a range of optional add-ons to increase the value of the sale. Or allow your customers to add engraving or an anagram for that premium feel.
#5. Set up a loyalty program
Customer loyalty programs are not just great for encouraging customers back to your store. They can also help to boost your average order value by engaging your customers in a quest to score the reward that has taken their fancy. Also, consider offering bonus reward point deals whenever you want to see a spike in your sales value.
#6. Release limited versions
Releasing a limited version of your most popular products at a premium price will also boost your customers’ average spend. A new colour, design tweak or innovative add-on will delight your loyal customers, and make the offer time sensitive to create a sense of urgency.