Having high traffic numbers and high conversion rates on your store are the key to your Shopify growth. The high number of visitors to your store increases your chances of gaining more sales.
Table Of Content
1. Article Brief
2. What Is Average Order Value?
3. Benefits Of Boosting Average Order Value
4. Tips On Increasing Average Order Value On Your Thank You Page
While there are multiple channels to help you increase sales and average order value for your Shopify store. Optimizing the order status page is another cost-effective and requires less technical know-how, especially for Shopify stores where you can integrate a third-party app like StoreBundle to help you design, customize and optimize your store’s thank you page.
Using widgets to keep your thank you page in shape and also to help you drive sales and engagement can be used for boosting the average value order per customer.
This you can achieve in a few clicks and setup procedures using the thank you page builder app on StoreBundle.
Let’s get into the guide on ways you can increase the average order value for customers in your store.
What Is Average Order Value?
Average Order Value (AOV) is a metric that measures the average amount of money a customer spends per transaction on your website or in your store. It is calculated by dividing the total revenue generated by the number of orders during a specific time period.
The average order value can be an effective metric for e-commerce store owners to track. This is because it provides insights into customer behavior and purchase patterns. By monitoring AOV, merchants can identify trends and adjust their pricing, marketing, and sales strategies to increase revenue and profitability.
Store owners can engage in promotional strategies such as offering product bundles, upselling, cross-selling, or offering free shipping to encourage customers to purchase more items and thus increase the average order value.
Benefits Of Boosting AOV
Boosting your average order value (AOV) for your Shopify store can have several benefits for your business, including:
1. Increased revenue:
Once a customer’s order is increased, their spending increases which in turn drives revenue for your store. So when you are looking to grow your revenue by a significant margin, you can look at influencing customers to increase their orders.
It is quite straightforward to convince or influence an existing customer to increase their orders compared to how many orders you will be getting from a new customer or first-time buyer.
By increasing the AOV, you can generate more revenue from each customer, which can lead to higher profits for your business.
2. Improved customer lifetime value:
A customer with a high average order value has a chance of staying with you for a long time. An increased average order value simply shows that the customer is loyal to your store.
Keeping strategies in place to increase customers’ average order value can strengthen the lifetime value of such customers in your store.
When you encourage customers to purchase more items, you are creating a higher chance of increasing their lifetime value. This reflects in the total amount of revenue they generate for your business over their lifetime as a customer.
3. Lower marketing costs:
Making your customers stay with your brand for a long time gives you a better chance of having trusted and loyal customers. This means they trust your brand enough to increase their spending when shopping in your store.
This is a technique in marketing for e-commerce stores that is economical and requires little or no cost to get results. And channel marketing cost to existing buyers requires you to do very small convincing for them to patronize you.
This is different from a visitor who has never made a transaction with your store before. With such a customer, you might need to invest more in marketing efforts. The new customer may end up buying one item after all the effort.
Acquiring new customers can be expensive, so by increasing the AOV, you can maximize the value of each customer and lower your acquisition costs over time.
4. Competitive advantage:
Average order value increases your sales and revenue faster with existing customers than what you will get from acquiring new customers. This is why it is advisable that you build more on customers who have patronized you before.
This doesn’t mean you should skimp on acquiring new customers. When you want to increase sales in a valuable way, you should consider concentrating your marketing efforts on returning or existing customers. They can fetch you the sales and revenue you want with an increased average order value.
By offering personalized recommendations and upsells, you can differentiate yourself from your competitors and provide a better customer experience, which can help you stand out in a crowded market.
Tips On Increasing Average Order Value On Your Thank You Page
The order status page is a critical touchpoint for your customers, where they can see the details of their purchase and the status of their order.
It is also an excellent opportunity for you to increase your average order value (AOV) by recommending complementary products or upsells on the post-purchase page.
1. Cross-sell relevant products:
On the order status page, suggest complementary or related products that customers may be interested in purchasing. Most times, this recommended product might be related to or frequently bought together with the items ordered.
For example, if a customer just bought a camera, you could suggest a camera case or additional lenses, a camera kit bag, etc. To cross-sell on the thank you page, you need to be able to predict what items can complement the ones customers have ordered.
Make sure the products you suggest are relevant and add value to the customer’s original purchase.
2. Offer free shipping on larger orders:
Most online buyers love it when they see they can buy as many products as they want at no delivery cost. 50% of online shoppers have abandoned their carts due to retailers not having free shipping options for their products.
Customers do not really care if the original shipping cost has been added to the price of the product. All they are after is the free shipping offer attached to the order.
Consider offering free shipping for orders over a certain threshold. This can encourage customers to add more items to their cart to reach the free shipping threshold, thereby increasing your average order value.
3. Provide bundle deals:
Bundling products together is an excellent way to increase your AOV. Offer discounts on bundles of products that complement each other. For example, if a customer purchases a laptop, you could offer a bundle deal that includes a laptop case, mouse, and keyboard.
Creating bundles on the order status page can also push customers’ AOV higher. Since a bundle contains more than one item. Averagely, the customer’s product order increases.
4. Promote limited-time offers:
In the same way, you can use timers to create sales urgency for products on your store’s homepage and on the product page. You can add a sales timer to the products you upsell on the order status page.
Use the order status page to promote limited-time offers or flash sales. This can encourage customers to make additional purchases before the offer expires, thereby increasing your AOV.
5. Provide product recommendations based on previous purchases:
Upselling using customers’ product search or journey on your store makes it easy to get the customer to buy the item. Once they see an item they’ve checked before being recommended on the post-purchase page.
Use data from previous purchases to recommend products that are likely to be of interest to the customer. For example, if a customer has previously purchased a pair of running shoes. And while placing their order for the running shoes, they checked other gear. You could suggest other running gear such as sports headphones or fitness trackers.
The order status page can be a valuable tool to increase the average order value of your e-commerce store. By integrating upselling and cross-selling techniques, using clear and attractive calls to action, and offering promotions and discounts, you can encourage customers to add more items to their cart before checking out.
Remember to keep the design simple and easy to navigate, track your progress and make adjustments accordingly. This way you can improve your customers’ overall shopping experience.